Early Retiree
Research analyst, value, small-cap, retirement and income

United-Guardian: A Recession-proof Income Stock

This is United-Guardian's (NASDAQ:UG) balance sheet as of September 2013:


Current Assets:

Cash + marketable securities

$ 10,633,853

Other (mainly receivables + inventories)

$ 3,911,627

Total current assets

$ 14,545,480

Total PPE

$ 1,330,013

Other assets

$ 4,438


$ 15,879,931


Total current liabilities

$ 940,155

Deferred income taxes

$ 153,724

Total stockholders' equity

$ 14,786,052


$ 15,879,931

Net income for the last 4 quarters was $ 5,476,885. Hence UG achieved a ROE of 37%. Backing out the huge cash pile that currently earns next to nothing, it achieved an incredible adjusted ROE of 132%.

So how is this possible?

Business Economics

United-Guardian is a Delaware corporation that, through its Guardian Laboratories Division,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details