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Ron Sommer is chief financial officer at an institution of higher education in New York City. He has 35 years of financial management experience in the public, private and not-for-profit sectors. Sommer has also been a private investor for more than 30 years. He uses a "value" bent in... More
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  • Techne Corporation (TECH) - Good Risk/Reward Proposition
     Techne Corporation (TECH) is a mid-cap biotechnology company that offers a good risk/reward profile, It is engaged in the development and manufacture of biotechnology products and hematology calibrators and controls. The company appears to be richly priced as compared to its competitors. However, we think this is a hidden gem.

    The company's strengths include a strong financial position with no long-term debt and cash in excess of current liabilities, expanding profit margins and outstanding return on equity.

     For a detailed analysis, go to: http://measuredapproach.wordpress.com.

     Quick Facts

     The results are in for the first quarter and Techne reported a decline in net earnings of 6.4% to $26.8 million ($0.72 per diluted share). In the prior year quarter, the company reported net income of $28.6 million or $0.74 per diluted share. Consolidated net sales for the quarter were $66.5 million, a 4.0% decrease from $69.32 million in the year-ago quarter. Four analysts estimated revenues of $66.70 million for the quarter. 

    TECH announced that its Board of Directors has decided to pay a dividend of $0.26 per share for the quarter ended September 30, 2009. The quarterly dividend will be payable November 23, 2009 to all common shareholders of record on November 9, 2009. Future cash dividends will be considered by the Board of Directors on a quarterly basis. 

    Disclosure: The author has no position in TECH.

    Tags: TECH
    Nov 22 01:51 pm | Link | Comment!
  • EZCORP (EZPW) – Fast Growth, Solid Profits, Low Price
    EZCORP (EZPW) – Fast Growth, Solid Profits, Low Price
     
    EZCorp offers pawn loans in 294 U.S.-based pawn shops and at 38 Mexico pawn shops. The company also sells forfeited collateral from its pawn shop operations. In 477 EZMONEY stores and 71 of its pawn shops, EZPW offers short-term, non-collateralized loans (pay-day loans.)
     
    For a detailed analysis of EZPW, go to: http://measuredapproach.wordpress.com.
     
    ·         EZCORP Inc. (EZPW) reported net income of $20.9 million or $0.42 per share for the fourth quarter, compared to $16.0 million or $0.37 per share in the prior year quarter. Total Revenues for the fourth quarter increased 34% to $164.8 million from $123.4 million in the previous year quarter.
     
    ·         For the trailing twelve month period ending 09/30/09, EPS was $1.44. Consensus estimate for FY10 is $1.66.
     
    ·         The company announced that it has completed its acquisition of 108.22 million newly issued ordinary shares of Cash Converters International Limited, headquartered in Perth, Australia. EZCORP paid AUS $0.50 per share, for a total investment of AUS $54.11 million or about US$49.4 million U.S., and now owns about 30% of the outstanding ordinary shares of Cash Converters. The Cash Converters shares are listed on the Australian Stock Exchange and the London Stock Exchange (symbol, "CCVU"). EZCORP funded the investment primarily with cash on hand and expects the investment to be immediately accretive to earnings.
     
    ·         The PE ratio relative to the average 3-year, 5-year and 7-year EPS growth rate is 0.25X
     
    Disclosure: Author is long EZPW.
    Tags: EZPW
    Nov 15 02:30 pm | Link | Comment!
  • Forest Laboratories, A Strong Performer
    I have written about Forest Laboratories, Inc. (FRX) before. FRX is a mid-cap player in the biotech and drug markets. It is characterized by steady growth in both sales and earnings. Call this a value play. Its new product pipeline is promising and several products are now entering Phase 3 trials.

    For a detailed analysis of the company, go to https://measuredapproach.wordpress.com.

    Highlights:
    • Less debt equals less risk. FRX’s debt to equity ratio of 0.00% is exceptional.
    • FRX spends an increasing amount on Research & Development to keep its pipeline full. The company has a Price to Research ratio of 10.7, about right for a company of its size.
    • To measure growth rate persistence, we average the 3-year, 5-year and 7-year growth rates. Sales growth is 10.47% and the average EPS growth rate is 8.63%. This produces a current PEG of 1.38X.
    • The company is showing promising results with their investigational drug linaclotide in two Phase 3 trials.FRX and their partner, Richter Gedeon Nyrt, will start Phase 3 trials for the schizophrenic drug cariprazine.

    Disclosure: The author is long FRX.

    Tags: FRX
    Nov 08 01:44 pm | Link | Comment!
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