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Biotech / Medical : neog - Neogen's E.Coli Test adopted by Japan
NEOG 6.050-3.9%Nov 4 3:59 PM EST

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To: Kramer who wrote ()10/24/1998 4:03:00 PM
From: Kramer   of 441
 
It has got to be the Darts. There was an ask size of 5000 @ $7 on Friday. I guess they must be paying off their brother with the sale of neog stock. But it is quite alright with me, I have more than doubled my holdings at these levels (all that I can afford).

My calculations show that neog is selling at a PEG=.34 (based on 52 cents earnings this year). A PEG of .34 indicates that neog is greatly undervalued. I use the calculator located here: fool.com
For those of you that don't look at a stocks PEG, it is a figure that has been made famous by guys the likes of Peter Lynch and is a big factor in the Motley Fool guide to investing. The PEG also indicates that neog would be fairly valued at a price all the way up to and over $15 (PEG=.76), which is in the middle of the fairly valued range. I think $20 (PEG=1.0) which is on the borderline of fairly valued to richly valued is even possibly.

Regards,
Kevin
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