Par Pharmaceutical Companies, Inc. (PRX)

Par pharmaceutical co is a holding company in the business of developing, manufacturing and distributing branded and generic drugs in the U.S. Earnings increased each of the last 3 qtrs., beating estimates by wide margin. Par sports of d/e .Per share T/B $9.93 Cash $6.04, and short interest 3.52%.

Strong pipeline and lineup of generics. Industry will likely remain strong with cost being a factor as is baby boomers.

Sound balance sheet with exceptional cash position.

PEG 0.18, P/S 0.8.

Update for latest results for PRX which I own :-

http://finance.yahoo.com/q?s=prx&.yficrumb=yIQAwlz5SoW

Industry: biotechnology & drugs
EPS = 1.05
EPS EST 1yr = 2.363 2yr = 1.475
EPS EST Q1 = 0.489 Q2 = 0.407
PE = 21.7 Industry 14.4
PB = 1.59 Industry 2.7
PS = 0.72 Industry 3.5
P/CF = 21.7 industry 12.5
P/FCF = 8.9 Industry 13.5
Yield 0.0 Industry 0.0
Gross profit margin = 27.5 Industry 51.0
Operating margin = 5.1 Industry -41.2
Net Profit Margin = 3.2 Industry -41.4
ROA = 4.4 Industry -52.8
ROE = 7.7 Industry -12.9
Insider ownership = 2.4
Greenblatt ROC = 22.99
Greenblatt Earnings Yield = 8.04
PosFCF generic % free cash flow yield 11.26%***
LT debt less than Gross Income = Pass
Passes 12 of 17 of Mike Klein's metrics
MaxPrice = 92.85 Discount 75%**
Metrics from qtr ending 10/03/2009
Caps rank 3
http://caps.fool.com/Ticker/PRX.aspx
MC score 235

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 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)

Par Pharmaceutical Companies is a holding company in the business of developing, manufacturing and distributing generic and branded drugs in the U.S. Par sports a D/E of .15, cash per share $6.04. cash flow $2.18 and a short interest of 3.52%. Earnings surged each of the last three quarters and pulverized estimates.

PRX looking to get approvals on an additional $6.5B worth of drugs.

PRX Total revenue nearly doubled to $294.8 million

Analysts on average expected earnings of 49 cents a share on revenue of $290.4 million, according to Thomson Reuters I/B/E/S.

PRX said it currently has about 27 abbreviated new drug applications pending with the U.S. health regulators, 13 of which the company believes have first-to-file or first-to-market opportunities with a brand value of about $6.5 billion.

Aging population will need generic pills regardless of government interference. Cash flow is a little weak, but the rest looks pretty good.

With the swine flu pandemic I only see the majority of pharmaceutical companies doing good

With larger coverage, larger sales force, larger everything in general the B-12 nasal spray will meet Par's profit requirements nicely. Anyone who has to take pills every day will appreciate a one time per week nasal spray! The population is aging. B-12 is something all of us old hippies can get busy with!

obama health plan increases use of generics

Over the next 3 years, $48B of branded drugs will go off patent, which will lead to generic drugs growing to 70 percent of the U.S. drug market place - PRX is strongly positioned ot take advantage of this shift in the marketplace

Another pharma play, good price level

Two words will boost this company: baby boomers. That combined with a faling health care system that intentionally plunges people into poverty will make discount drugs the place to be.

Granted, the above is only a justification for why this niche INDUSTRY will be good in the long term. There are still legitimate concerns about the financials on this company. However, given its place in foreign markets and the risk factor for any pharma company (especially one undercutting the majors), this is a bet that I believe will pay off.

This company's income statement shows no profit and dwindling sales. There is time for a stock correction.

No growth for 2008. Street hates that.

wow - take a look at the stats on this company. right at the moment, it appears to be beating the market as far as stock appreciation goes, but this baffles me . they have a net loss on growth,net loss on profit margins,operating margins are slim to say the least,dwindling cash flow charts. if you look at the balance sheet, you'll find a shrinking net assets base.revenues have shrunken to the negative area.this is a train wreck company. perhaps only weeks from announcing bankruptcy. my bet is ,someone has to take notice soon and this one will lag the market.

Pure speculation

Great supply infrastructure in India, awesome business relationships with foreign regulators and markets. Model is lwo cost meds (generics) for tose not able to afford or be covered for other. PRX is all partners with up and coming and old time Pharmas..Alot in the pipe and alot in Phase3 ready for endorsement by foreign regulators.

cant lose with pharmaceuticals right now

This stock was picked to outperform from May 2007 to May 2008 by TMFRobert