K V Pharmaceutical Company (KV-A)

Infrastructure problem will be fixed

This company has been around for a while, and survived some challenging markets. The issues with the FDA will turn out to be a cloud with a silver lining. Any corporation or organisation that survives the rigours of an FDA intervention, is a stable and attractive stock pick. KV.A is already showing signs of revitalisation.

I don't think that this stock may have a little run based on artificial media hype, but don't believe the company has really that much to offer to create solid stock gains. So they are developing products to save money in manufacturing supplements and drugs and are also marketing generics. Big deal. There's safer and better places to put my money.

In reading the SEC filings and the FDA citations, this company on a wholesale basis at almost every site they manage has undermaintained equipment, responded inappropriately or not at all to quality concerns, and run their machinery at rates that were higher than equipment capacity. IMHO this can only mean one thing: lack of attention to quality, excellence and ethics at the highest levels. Read the filings and statements. Each filing for why financial statements are not produced have the statement saying the company has doubts whther or not it will continue to be a "going concern:. This statement is one they legaly must make if they are not sure they will be able to keep the company solvent. Not sure how they will with no production to speak of for most of 2009, recalls, and no current for sale production. This is a long shot people...wait to see how the trials go and whether their board of directors changes. BTW, a good way to post industry leading profits for the short term is to do the things the FDA cited them for...

I own KV.A :-

http://finance.yahoo.com/q?s=KV-A&.yficrumb=yIQAwlz5SoW

Industry: biotechnology & drugs
EPS = 1.64
EPS EST 1yr = na 2yr = na
EPS EST Q1 = na Q2 = na
PE = 2.2 Industry 15.2
PB = 0.39 Industry 2.7
PS = 0.29 Industry 3.5
P/CF = 2.4 industry 13.6
P/FCF = 2.7 Industry 13.7
Yield 0.0 Industry 0.0
Gross profit margin = 69.8 Industry 51.0
Operating margin = 22.4 Industry -42.3
Net Profit Margin = 14.9 Industry -42.0
ROA = 11.1 Industry -52.3
ROE = 21.2 Industry -14.7
Insider ownership = 25.5
Greenblatt ROC = 43.78
Greenblatt Earnings Yield = 43.86
PosFCF generic % free cash flow yield 37.23%***
LT debt less than Gross Income = Pass
Passes 13 of 17 of Mike Klein's metrics
MaxPrice = 37.89 Discount 90%**
Metrics from qtr ending 6/30/2008
Caps rank 5
http://caps.fool.com/Ticker/KV-A.aspx
MC score 260

All good enough for my money. I only suggest stocks that I own !

(See posts 388/584/665/760/1051/1807/2213/3546/3755/4046/4208/4225/4345/4573/4818/5241/5242/5310/5461/5579/5169/7651/7893 on 'Investment Analysis Clubs / Dynamic Value Investing ' board for extra due diligence applied ). **MaxPrice is a generic version of Mike Klein's Maxprice and ROC and Earnings yields are generic versions of Greenblatt's metrics. *** PosFCF generic % free cash flow yield taken from AAII and posts 5248 and 5253

See 'Investment Analysis Clubs / Dynamic Value Investing' board and my CAPS profile for further excellent companies selling at a discount to Maxprice with excellent current metrics. CAPS only shows my selections over 100Mill (unfortunately due to restricted lower market cap applied by MF CAPS).

As stated on the 'Investment Analysis Clubs /Dynamic Value Investing' board my aim is to obtain up to 50% returns p.a. as Buffett stated he could obtain (3 times) recently. A very difficult task but you can follow along with my buys and sells on my CAPS page, where I put my money where my mouth is . If I perform well I hope you can benefit. If not , feel free to ignore my comments. CAPS allows each and everyone of us to be clinically judged on our stock picking abilities over the LONG TERM.

Please always do your own due diligence before investing.

Manucastle :o)

Taking a flier on these guys. Don't have much history on them, but fundamentals appear solid for the time being. Good buy under $5 in my opinion.

KV pharmaceutical has been laid low by recent troubles with the FDA and is currently selling for about 0.4 times book value. Assuming this company eventually restores its good grace with the FDA, the stock will soar.

This should yield some good profits.. They still have some road bumps ahead with the FDA action but, generics are the future.

All Star Portfolio

Betting for a turn around.

Shooting dead fish in a barrel could not be easier than making money on this stock!!

I agree with some fantastic earlier pitches. The company should be in recovery mode and should rise handsomely.

2.17 PE, it has to be either undervalued or the Fool's system is out of wack...........

Go for it Fools.............

Recommendation of cap member and/or remembers to at least double with in six months or less

I believe it will be a good solid pharmaceutical stock, over the long term

This stock is VERY cheap. Is it cheap enough? Probably. Read this Fool review: http://www.fool.com/investing/value/2009/09/30/this-is-the-markets-cheapest-stock.aspx.

I won't buy any. It's still not a great stock. It's just cheap enough to make it worth putting a thumbs up on

This is a fantastic stock! can't go wrong with this pick! Show me the Money like Jerry MaGuire!

Just watching. Drug company.

Betting on Caps that they get their approvals and start rolling again. Not putting real money on it.