Neogen Corp (NASDAQ:NEOG)

CAPScall from my blog article "One Simple Stock Screen For Bargain Stocks"
http://beta.fool.com/shawnrobinson/2012/01/31/bargainstocks/1466/

The stock has declined recently as investors are worried about the company’s ability to realize its lofty valuation after missing analyst estimates on earnings in two consecutive quarters. But given the fact that the company has reported positive operating earnings for 75 quarters in a row and has seen year-over-year revenue increase 79 out of the past 84 quarters, investors should have confidence that management will continue to allocate capital appropriately.

A leading speciality chemical company.

I have held neogen longer than any stock in my portfolio, at least 10-15 years. Why? Because it has been better than gold all of that time until recently. It is also because I am not anxious to pay the taxes on such a big gain.

In a nutshell, Here is why:

Neogen always increases its earnings, recession or not.

I believe Neogen is still better tha gold going forward, Food safety beats glitter.

Neogen has a host of products. There is no need to worry about being eclipsed on one, or having some giant customer default on sales, or choose another supplier.

Neogens customer base is near world-wide. But it has only recently achieved this. Coca-cola has been world-wide almost forever in comparison, and there are still people who buy it and expect it to grow.

In short, Neogen is one of the more reliable companies you can own for its' earnings. I believe it has a place in any portfolio. Maybe it got ahead of itself lately, but probably not so anymore.

To summarize, If you are looking for a stock in this sector to diversify your portfolio, Neogen is a good choice, and , my bet, it is a good choice more than a day, a week or a month. A year? Already had it for many and plan to keep it a few more.

right stock for right time food safety and regs are growing

Neogen will continue to grow. They are near the top of their industry, and do everything with deliberate speed and decisiveness. Measured expansion into new markets, and development of new products, has enabled them to stay ahead of the curve in the food-products-safety testing industry.
Look at their last five years. There's no reason to doubt their ability to thrive in a growing industry.

This is a pharmaceutical company/ biotechnology company that has been very consistent at growing the business without going out on a limb too far. They have make aquisitions and integrated them nicely into the company.

President Obama's creation of a new Food Safety Working Group and key FDA appointments, is willing to spend over a billion dollars to overhaul the industry and promises tougher food safety measures to protect the public from future bungles in the system such as the recent peanut butter debacle.

NEOG has no debt, positive cashflow, low float, share buyback, and average quarterly earnings growth (year over year) of approximately 19.9%, boosted by their acquisitions.

Going forward, this small cap stock has a favorable outlook for 2009.

Solid little company, probably will be assimilated into some big corporate Borg eventually. Only worries are that they have to survive in the Michigan political/economic climate and they are in a field where it's so easy to get badly tangled up in lawsuits if anything goes wrong.

can't go wrong with food safety in future

ibd

Neogen is a well managed company that flys just under the radar of most Wall Street analysts. The analysts tend to follow IDEXX Labs as a proxy for this sector. I like Neogen here for its smaller size and flexibility. The company carries no debt and has healthy insider ownership. It also produces consistent results quarter to quarter and rarely disappoints.

Neogen has two separate, but related businesses. The first has to do with food safety testing for both humans and animals. This is obviously an area that has constant demand. The demand will accelerate as globalization makes it more difficult to follow food-borne disease. I wouldn't be surprised if the next administration beefs up the regulatory oversight responsibilities of the FDA and gets more serious about food safety, given recent panics over salmonella and such.

The second business involves the development and manufacture of a whole range of veteranary medicines and treatments. This is where Neogen unviels its biotech roots, but compounds and drugs developed for animals are approved much more easily than those for humans. I like the companies positioning, management, and balance sheet. Definitely a long term outperformer.

Jumping Back In

who doesn't love a puppy or kitten?

Recession proof industry!
Pretty good PE ratio! Go for it

Member of the "Penny Stock Posse."

bling bling

Small risk, but food safety will be important to people.

Should see long term gain.

Lab diagnostics-you just can't go wrong here-relatively recession proof

This animal and fodd safety products company is settling down after have a great run from mid 06 to the fall of 07. I lexpect this stock to take continue its upward move within the next couple months.