Santarus, Inc. (SNTS)
A pharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by gastroenterologists or primary care physicians.
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Positive Earnings Surprise
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Two FDA decisions Due in eary December rolling the dice with this one
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I have purchased SNTS :-
http://finance.yahoo.com/q?s=snts&.yficrumb=%2FQnGSSWfR3...
Industry: biotech & drugs
EPS = -0.06
EPS EST 1yr = 0.193 2yr = 0.230
PE = na Industry 15.2
PB = 10.56 Industry 2.7
PS = 1.49 Industry 3.5
P/CF = na industry 13.6
P/FCF = na Industry 13.7
Yield 0.0 Industry 0.0
Gross profit margin = 82.2 Industry 51.0
Operating margin = -1.1 Industry -42.3
Net Profit Margin = -1.8 Industry -42.0
ROA = -2.8 Industry -52.3
ROE = -18.5 Industry -14.7
Insider ownership = 0.6
Greenblatt ROC = 4.92
Greenblatt Earnings Yield = 0.00
PosFCF generic % free cash flow yield -4.74%***
Passes 15 of 17 of Mike Klein's metrics
MaxPrice = 10.18 Discount 63%**
Metrics from qtr ending 9/30/2009
Caps rank 3
http://caps.fool.com/Ticker/SNTS.aspx
MC score 243
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)
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Buy me now!
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Highly underrated. GERD treatments are not that effective and LR PPI drugs don't provide immediate relief. Zegrid has a IR formulation that is significantly better than current prescriptions and OTC products. Hence, Schering and Glaxo's interest in co-promotion. This is a 14B market, and 5% of that market will make this an easy 4 bagger. The PAR case is causing hang over, but look for that to resolved and for profitability in 2009.
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SNTS has been hampered primarily by a patent challenge by Par Pharm. and the stock took a huge hit when this claim came out primarily for two reasons. 1) CEO had stopped giving guidance on a call a few days before and 2) market thought that perhaps the patent challenge would further hamper the cash flow situation at SNTS. Realistically, this suit will probably be settled or won by SNTS. SNTS should reach profitability in Q4, however, the market is overlooking the two major deals SNTS has signed with Glaxo (for foreign distribution) and Schering for OTC distribution. Both companies are comfortable with the patents as should you be. I look for a volatile rocky ride from here...but up it should be. Cheers.
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good drug
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addresses $billin market; secondary benefits re acid reflux;big co-marketing deals;faster PPI response;undiscovered by analysts
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making great progress on their OTC version of Prilosec
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Incrementally rising market share in a multi-billion $ market. An effective product with proven advantages over the competition and a brand new distribution deal with Schering-Plough. This is a potential buy-out candidate.

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