Post by
FormerHedgie on Nov 20, 2024 11:07am
A disciplined quarter from Rene & Co | Stock should be $16
I think the record sales with broader based growth from all lines was very encouraging. The slight decline in profitability is acceptable as the company invests in bringing its new products to market. Especially the endocrine drug that I believe is Zofenopril.
Going through the regulatory approval process can be expensive. Given the potentially transformative impact that Zofenopril can have on RX's valuation (see https://stockhouse.com/companies/bullboard?symbol=v.rx&postid=36119819 ) I am very happy for them to be spending in this area.
My Net Net take on the quarter comes down to the fact that they did $0.20 of after tax EPS in the quarter. If you annualize that, it is $0.80 which puts the stock at 13.5X with the potential for huge appreciation from new / newly acquired products.
The stock seem EXTREMELY cheap now that it appears that strong revenue / EPS growth is very close. Using a more reasonable valuation multiple of 20X and $0.80 of EPS makes this a $16 stock as it stands before we see all the new growth.
Excited for the future.