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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (14539)	1/16/2006 2:03:30 PM
From: Ken W	Read Replies (2) \| Respond to of 23958

Sergio I've been looking at your PMD: From their recent earnings report "ACTON, Mass., Oct. 27 /PRNewswire-FirstCall/ -- Psychemedics Corporation (Amex: PMD - News) today announced third quarter results for the period ending September 30, 2005. The Company also announced a quarterly dividend of $.10 per share. This will be the Company's 37th consecutive quarterly dividend and will be paid on December 23, 2005 to shareholders of record on December 9, 2005. ADVERTISEMENT The Company's third quarter revenue was $5,353,168, up 10% as compared to $4,870,218 in the third quarter of 2004. Net income was $982,621 or $.19 per share, up 23% from $801,158 or $.16 per share for the same period in 2004. Raymond C. Kubacki, Chairman and Chief Executive Officer, said, "We are pleased to be able to report record results for the third quarter of 2005 -- a significant achievement in a less than robust hiring environment. Our revenue, pretax income and net income for the third quarter were the highest for any third quarter since the Company's inception. With a job market that continues to be challenging, we still recorded a considerable increase of 10% in our revenue for the third quarter. This increase in revenue, along with our continued emphasis on controlling costs enabled us to realize a substantial increase of 29% in our pretax income and 23% in our net income for the third quarter." Forbes had a blurb on the company dated Dec. 05 "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)." The charts: Daily looks like it wants to test some support in the 13 to 13.50 area. stockcharts.com[m,a]daclyyay[pb50!b200][vc60][iUb14!Lp14,3,3]&pref=G The weekly looks to comfrim the 13 to 13.50 support with an eventual break over 14.50 to 15 and the 21 price target that Forbes is looking for will be accomplished easily. I see this company as you do....a niche play in drug testing for company intial employment and ongoing maintance testing. I don't think it would be appropriate for use in law enforcement due to chain of command issues as evidence specific to drug testing for DUI cases. There are continued challenges to the present blood, urine and breath testing in DUI cases that are a constant battle for law enforcement. I do like the ongoing divy that the company pays, the low outstanding shares and cash vs debt ratios. All in all this is another of your stellar picks..low volume, solid FA and pretty much undiscovered, just waiting to pay off. Ken