Looking for Laggards After the Latest Market Rally [View article]
Here is the rest of the article from my blog with a valuation comparison of HITK vs. CPD:
With shares of HITK trading up today by about 25% on record quarterly revenue of $25.1M and diluted net income of $1.1M or 9 cents per share, Caraco appears extremely undervalued at current levels of $3.50 per share. Caraco trades at the lowest price to sales ratio [PSR] in the generic drug industry at just 0.24X with a trailing price to earnings ratio [PE] of less than 4X, zero debt, $33.6M cash, and a market cap of $123M. As a comparison HITK trades at a PSR of 0.84X with an estimated forward PE of 16X, negligible debt, $16.1M cash, and a market cap of $71M.
Looking for Laggards After the Latest Market Rally [View article]
With shares of HITK trading up today by about 25% on record quarterly revenue of $25.1M and diluted net income of $1.1M or 9 cents per share, Caraco appears extremely undervalued at current levels of $3.50 per share. Caraco trades at the lowest price to sales ratio [PSR] in the generic drug industry at just 0.24X with a trailing price to earnings ratio [PE] of less than 4X, zero debt, $33.6M cash, and a market cap of $123M. As a comparison HITK trades at a PSR of 0.84X with an estimated forward PE of 16X, negligible debt, $16.1M cash, and a market cap of $71M.