I'm glad to see that you bring the same enthusiasm to investing that you did to acting as you made me laugh for many years as Jack Tripper on "Three's Company."
As to your question, I think that this whole sector is in the dumps. This stock, Bergen Brunswig, Omnicare (just hit a new 5 year low). When this much pressure is put on an industry, anything can happen vis-a-vis accounting problems, layoffs, etc.
My view is that if we are to bottom fish in this industry where everyone has been beaten up, the best chance of a good return comes through buying the shares of the company with the strongest balance sheet, or the strongest cash flow. NCSS has negative cash flow, and big debt. This could be temporary, but I'd go with Omnicare on the basis of its positive cash flow, its size (it's ten times as large as NCSS in terms of market cap), and its leadership position. I wish OCR had less debt, but I think it can handle it.
I hope this has been somewhat helpful. And, again Sir, it is a pleasure to meet you, if only on a stock thread. |
