Ted B.: That's because when someone says anything bearish on this thread re USRX, they often get their ass chewed off. This is the reality of this thread, so that's why you got an extra-bullish view. Here's the reality of USRX:
Not counting the one-time charge for the purchase of in-process R&D last quarter, USRX has a trailing PE of 31 (@ shr price of $73). For a company with almost 2 billion in sales for FY ended 9-30-96, that's a reasonable PE. The larger the company, the less likely it is that investor's will award it a PE as high as they might give to a smaller company. The reasons for this are obvious: The larger the company, the harder it is to achieve large % growth on a year to year basis. USRX plans to increase sales 50% to 3 billion for FY 1997. Earnings are projected to increase 37-39%. I don't see trailing PE of 31 as insulting at all. There is room for share price growth, and after we get past this next earnings release for qtr ending 12-31-96, we will be able to breakout of the mid to low 70's range. That is, if USRX makes the earnings estimates of 72 cents a share.
Dwight |
