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$1.46 -0.04 (-2.67%)
7/8/2008 3:58 PM

Simulations Plus, Inc. (SLP)

CAPS Rating:
***

The Company currently offers four software products for pharmaceutical research: ADMET Predictor/ ADMET Modeler, ClassPharmer, DDDPlus, and GastroPlus.

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Ticker Not Ratable

SLP doesn't currently meet the $100M market cap / $1.50 stock price minimum. (Learn More)

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Total Players

35 Outperforms
3 Underperforms
 

All-Stars

5 Outperforms
0 Underperforms
 

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Ticker Tags

Business Software & Services (141), Micro Cap (4824)
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Simulations Plus, Inc. At A Glance

Current Price: $1.46
Last Trade Time: 7/8/2008 3:58 PM
Open: $1.47
Previous Close: $1.50
Daily Range: $1.41 - $1.55
52-Week Range: $1.45 - $2.43
Volume: 62,057
Market Cap: $24.34M
P/E Ratio: 15.00
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Stock Trends

SLP VS S&P 500 (SPY)

SLP 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

2

Simulations Plus, Inc. (SLP)

Avatar darkgoody (79.25) Submitted: 11/26/07 12:36 PM

Lots of room for industry consolidation and decent cash-on-hand to explore acquisitions. Organic growth will continue and execution of acquisition strategy should make this a multibagger. Buy under $5.

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Recs

2

 (SLP)

Avatar darkgoody (79.25) Submitted: 11/26/07 12:36 PM : Outperform Start Price: $5.58 SLP Score: -62.31

Lots of room for industry consolidation and decent cash-on-hand to explore acquisitions. Organic growth will continue and execution of acquisition strategy should make this a multibagger. Buy under $5.

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Recs

0

 (SLP)

Avatar doublet83 (< 20) Submitted: 9/25/07 6:34 PM : Underperform Start Price: $8.50 SLP Score: 65.78

Market overestimating the addressable market of their product. Valuation can only be justified if historical growth rates are sustained for a significant period of time, but these growth rates are clearly unsustainble.

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Recs

1

 (SLP)

Avatar bigdividends (38.85) Submitted: 9/20/07 12:13 AM : Outperform Start Price: $6.85 SLP Score: -64.99

Carved themselves a nice niche in the health care software business. Company produce reserch software for the pharmaceutical industry. They have a number of predictor models which scientist are able to use to determine absorbtion rates and disolution of a drugs. A number of the larger players are starting to buy their software along with the U.S. National Institutes of Health (NIH).

Smart mangagement, good product and an expanding business sector. No long term debt, solid return on equity, excellent profit margins. They just announced a 2-1 stock split (dividend pay out).

Interesting to see what they do with there cash on hand. Numbers have gone from $1.6 mill at the end of august to almost double that at the end of may.

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Recs

5

 (SLP)

Avatar billbu (96.69) Submitted: 9/11/07 1:59 PM : Outperform Start Price: $6.30 SLP Score: -62.98

SLP's primary business is developing and producing best in class molecular modeling software for pharmaceutical discovery and development. The ability to predict the properties of proposed molecules allows researchers to avoid wasting time and resources developing compounds that will not work due to toxicity, lack of absorption, instability and such. Modeling software allows researchers to narrow in quickly on the most promising compounds, shortening their development cycle and reducing the associated costs.

Their products have been gaining broad acceptance across the pharmaceutical industry and the government agencies that oversee them. The FDA gave the company a huge vote of confidence last January by licensing their GastroPlus product, after advocating for better simulation and modeling tools since 2004. In August the FDA gave a further nod by licensing an additional product, (DDDPlus) used for modeling drug properties as they relate to in vitro fertilization processes
SLP was recently awarded a Small Business Innovation Research grant (Jun-07) by the US National Institutes of Health (NIH) and applied for a substantially larger phase II grant earlier this year. In addition to the grant the NIH recently issued a purchase order for SLP's ClassPharmer molecule design software.

Beyond the revenue that they represent as customers, the NIH and FDA will likely serve as trend-setting organizations and examples to companies who work in pharmaceutical research and development. This added boost is great but SLP's software already has a proven track record in the pharmaceutical industry here and abroad. A large and growing percent of their pharmaceutical software and services revenue (approx 50%) is from Europe and Asia. Several studies have now been published that compare the predictive accuracy of software programs. Out of more than a dozen programs, SLP's flagship product ADMET Predictor has been ranked first in accuracy over all other programs.

SLP also offers contract research but management sees this more as a way for development scientists to stay close to their customer's needs than as a significant growth area for the company. The contract research also serves to support new customers who might have use of the modeling capability but not have the personnel to devote to it's use.

SLP also haa a wholly owned subsidiary Words+ that develops and sells augmentative and alternative communication and computer access software and devices for disabled persons, primarily for the speech therapy market. Words+ currently represents 35% of sales down from 50% in 2006. This portion of the business is improving after recent challenges but is not the primary driver of growth going forward.

In addition to favorable adoption trends in the pharmaceutical market, this is a very well run company. They have positive trends in key areas over the last several quarters; strong sales growth, improving earnings, positive and growing ROIC and almost no debt. According to preliminary numbers released this week (Sept 6, 07) overall revenues were up 50.2% for FY07 and more importantly revenues from pharmaceutical software and services increased 78.5% YOY.

This stock has a fairly high PE so I would wait for a good entry point. I was able to buy this for my real life portfolio at 9.05 less than a month ago (8/15/07)after watching it for several months. Because it was below 100 million market cap at the time, I was not able to pick it for my CAPS portfolio. I added it later at 12.60 I believe it will continue to improve from here.

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Recs

0

 (SLP)

Avatar wolfofwallstreet (84.49) Submitted: 9/05/07 6:23 PM : Outperform Start Price: $6.74 SLP Score: -64.33

Impressive revenue growth. Since the same quarter one year prior, revenues leaped by 71.0%.Earnings growth of 133.33% and other important driving factors, SLP has surged by 254.89% over the past year, outperforming the rise in the S&P 500 Index during the same period. SLP should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.

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