Perrigo Company (PRGO)

This met a high level screen to indicate a buy and strong outperform against its peers (other tickers in its industry). My 1st version of this spreadsheet devles deep into the company's balnace sheet and recent income statements, combined with other relevant price data for the company including insider/institutional holdings, short interest, debt levels, etc.
Testing capabilities of this 1st version of my automated, valuation spreadhseet matched with my personal criteria and see how it holds up.

With the economic downturn and the push for public healthcare, discount and generic drugs are going to be crucial.

PRGO has to be the only company in Michigan that is hiring! New CEO (a couple years now) is aggressively growing the company. This economy has more people buying "store brands" and finding they are just as good, will not likely return to the pricier name brands. I have real money on this one.

PEG = 0.90

Good run generic pharma company with growth, will be back past or near its 52 week high in a few years

In the healthcare restructuring environment that we're entering, drug costs will be big on the target list. Perrigo is a dominant player in the generic pharm industry and should do well as compared to it's competitors and name brand companies.

Using today's selloff related to .04 miss to initiate long on Perrigo. House brand drugs should fare realtively well in current economic climate. Company is a secular grower and still guiding to roughly 13x forward earnings in upcoming fy. Mid-teen ROE significantly above peer averages - looks fairly valued/slightly cheap at current price near term with strong liklihood of market beater over next 3-5 years.

Facile est inventis addere - It is easy to add to things already invented.

Why take the risk of innovation when you can copy?

PRGO sells generic products under the store name with packaging that is similar to the leading brand. They not only get the benefit of copying the product, they get the benefit of copying the packaging.

Last year they had 26% growth in sales. In these hard economic times, shoppers will look for the cheaper brands and take comfort in buying a product that look like the leading brand.

They only copy what already works and they let someone else promote the brand.

ibd

Hmmmm .... this company make Pierogi... tasty Polish dumpling... Much better than dinosaur meat

Guessing as usaul!

green

PRGO was wise to maintain valuation discipline in the case of the Leiner bankruptcy auction.

Drugs are good!

yeeeees

More Americans are taking drugs. Allergy season is coming. What is not to love?

Beat revanues by .05% and a stong guidance into 2008, this stock is still a great value for those who want in. Everyone needs their drugs!

Good company and great chance to get in.

risk managed well