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It went up because people researched and paid $17.5 or more for it. I probably would have paid that at the time myself, I like the industry and NUTR is a market leader, looking for acquisitions and growth opporturnities. That brings me to another point -debt- The current debt ratio is not 2:1, it is less than one by current figures. However it could reach 2:1 since the company is looking to buy. Not, a big factor, as long as they have the earnings to pay debt. Working capitol was 17.8 mil last qtr, they actually used less than 2 mil, good cash flow. For every ratio that seems "high", I have found 5 which are "better" than average. I hope you don't make decisions based on one factor such as PE, Current ratio, Price to Sales...look at the total picture. May drop next week, May not...I'm putting my money on the May not side this week. The only thing I'm worried about is that it looks too perfect, there must be something bad that I am missing, or maybe Friday was just my lucky day. Good Buy at 12, but you may not get the chance... |
