Ranjit Thomas

Neogen Corporation: An Organic Play on Globalization

The macroeconomic analysis is all well and good, but perhaps you should also look at the valuation? The stock is trading at > 30x '08 EPS, most of the growth has come from acquisitions, and the co. has not generated any cash in the last 12 months. For a co. like this with poor earnings quality and zero free cash flow, I don't see why anyone would pay more than a 15x multiple. This looks like a $15 stock to me.