Thanks for the article Ken. ALAN gapped at the opening and you have to like that the gap filled as well as today's volume. The MMs were a little tricky, bumping it up to close at .65 on the last trade on just 100 shares.
Oester's quote in today's news release is what we've figured out (L.A.). <"Looking at the industrialized world, the United States is the largest incarcerator," Oester said. "So the domestic market is our primary focus. >
I've been buying and added to the folio this afternoon, PMD. They specialize in drug testing for employers as well as for the police. They're trying to expand the potential uses for their product line as well as expanding their customer base to include the federal govt. This company is demonstrating solid earnings growth and pays a dividend.
I learned about PMD from recent coverage initiated by Walrus Partners. As luck would have it, PMD was featured in today's Forbes magazine. A press release that (I think) came out after the bell today:
<Psychemedics
Recent Price: $11.75
Six- To 12-Month Target: $21.50
Seeking to become the biggest force in hair since Sassoon, Psychemedics (amex: PMD - news - people ) is the largest provider of hair-testing services for the detection of abused substances. Its patented psychemedic drug-testing services are widely used by blue-chip companies and many government agencies for employment purposes. Job growth in the $9 to $20 per hour segment of the economy is a major contributing factor to its growth. Despite a less than robust hiring environment, Psychemedics has continued to add new accounts and sustain strong operating margins. With no long-term debt and ample working capital, management is confident that the company is well positioned for substantial growth in the near future. Moreover, if the government in Washington ever comes around from all the quarreling and approves the federal guidelines that will allow hair and saliva testing as acceptable substitutes to urinalysis, Psychemedics will surely benefit. If the approval does pass, drug testing using hair samples may become a more viable alternative for many employers, particularly small employers, than the more traditional urine testing.
We have a price target of $21.50, based on its growth prospects, both domestic and abroad. Our model and analysis suggest that revenue will grow to $24.3 million (EPS of 94 cents per share) in 2006 from $21.1 million (EPS of 75 cents per share). > forbes.com |
