Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

Psychemedics: Quality At A Large Markup

Executive Summary

    Company's claims of superior technology is found in patented methodology creating a moat The drug testing business has attractive business properties, low capital expenditures, has significant economic goodwill with an average after tax earnings of 25% of net tangible assets without debt over the past decade, generates cash before providing the service and sometimes doesn't even have to perform the service. Long term prospects of the company seem viable because there is a high likely hood of continued drug testing, however, low growth Management has been decent allocators of capital with dividends The market has high expectations baked into the price of the stock as it trades at a high multiple of net tangible assets. PMD is also ...
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