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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (22)	7/11/1998 2:26:00 PM
From: TokyoMex	Read Replies (4) \| Respond to of 119973

Here is a study on pharmaceuticals,, since,,this sector will be always in demand,, From ..one of our bright member URgataChow.. Interesting argument ,, >>Here's the first chart of all 12 of the pharma companies. This chart is meant to compare 1998 Forward PEs and to be used as a reference for forward-going charts. Symbol 7/10 Close 98 EPS 98 PE PNU 48 11/16 $1.59 30.62 ABT 43 7/8 $1.51 29.06 AHP 49 « $1.83 27.04 BMY 119 9/16 $3.57 33.49 GLX 59 $1.70 34.71 JNJ 71 7/8 $2.68 26.82 LLY 65 5/8 $1.89 34.72 MRK 132 « $ 4.34 30.53 PFE 117 13/16 $2.09 56.37 SBH 62 ¬ $1.78 34.97 SGP 98 3/8 $2.30 42.77 WLA 74 5/16 $1.41 52.70 Lets do some calculations here. Add up all the PEs of 11 of the companies (PNU excluded) and you total 403.18. Do 403.18 divided by 11 on your calculator and you find out that the industry-wide 1998 forward PE average is 36.65. PNU's 98 PE is only 30.62. Lets assume PNU will trade at the industry average PE of 36.65. That means that on Friday PNU would've closed at $58.27 as opposed to its actual close of $48.69. That means that right now, PNU is $10 undervalued opposed to the rest of the sector when using this indicator. Lets move on to the next chart. We've concluded so far that PNU is undervalued compared to the sector as a whole but what about with each of the 11 individual issues? How does PNU play up to them? Lets find out. This chart below shows the 11 companies in order again with their 1998 forward PEs. In this case, though, I made the chart show what PNU would be trading at now if it had the forward PE ratio of the company being compared to it. For example, ABT has a 98 PE of 29.06. If PNU were to be trading on a 98 PE of 29.06 then the price right now would be $46.21, which is over $2 below the actual closing price of $48.69 on Friday. Red indicates that PNU would be trading below its Friday close had it have the 98 PE of the compared company, and blue indicates that it would be trading higher than the Friday close. Symbol 98 PE PNU Price w/PE ABT 29.06 $46.21 AHP 27.04 $42.99 BMY 33.49 $53.25 GLX 34.71 $55.19 JNJ 26.82 $42.64 LLY 34.72 $55.20 MRK 30.53 $48.54 PFE 56.37 $89.62 SBH 34.97 $55.60 SGP 42.77 $68.00 WLA 52.70 $83.79 Now we can say that over all, PNU is still undervalued opposed to each of the individual issues. We tallied 7 blues, and 4 reds in PNU's favor. These next two charts are where things get really interesting. These all compare the price of the stock to its 97 sales. In this chart, I've included the sales per share and the price to sales ratios. PNU ranks EXCELLENT in this category for it has the 4th highest sales per share ratio (behind MRK, BMY, and JNJ); however, it has the lowest price to sales ratio which is another EXCELLENT and suggests PNU's stock is severely undervalued opposed to its peers. In this case, however, I was unable to attain the figures for SBH and GLX, since they being ADRs. It really doesn't matter much in the end. Symbol Sales/Share Price/Sales PNU 13.14 3.71 ABT 7.77 5.65 AHP 10.97 4.51 BMY 17.20 6.95 GLX NA NA JNJ 16.94 4.24 LLY 8.02 8.18 MRK 20.09 6.60 PFE 10.29 11.45 SBH NA NA SGP 9.72 10.12 WLA 10.56 7.04 PNU's figures in that chart looked very good and suggest the stock is indeed undervalued. Once again grab out your calculators. Add up the 9 price to sales ratios (PNU, SBH, GLX excluded) and you total 64.74. Take that number and divide it by 9 and you get an industry wide average price to sales ratio of 7.19. PNU's price to sales ratio is a malnourished 3.71. Suppose once again PNU had a price to sales ratio equivalent to the industry average of 7.19. That means that on Friday PNU would've closed at $94.48 instead of $48.69. That's about $46 undervalued compared to the rest of the sector. Amazing huh? This is the best chart of all for you reading this to give you an idea of the things that lay ahead for this company. Just as I did with the 98 PEs I'm doing it with this too. This chart below shows the 11 companies in order again with their price to sales ratios. In this case, though, I made the chart show what PNU would be trading at now if it had the price to sales ratios of the company being compared to it This is really interesting. Remember one last time PNU closed on Friday at $48.69. Some of these prices are bizarre and truly show that PNU is perhaps the most undervalued drug company in the sector. Once more, red indicates that PNU would be trading below its Friday close had it have the price to sales ratio of the compared company, and blue indicates that it would be trading higher than the Friday close. Symbol Price/Sales PNU Price w/P.S. ABT 5.65 $74.24 AHP 4.51 $59.26 BMY 6.95 $91.32 GLX NA NA JNJ 4.24 $55.71 LLY 8.18 $107.49 MRK 6.60 $86.72 PFE 11.45 $150.45 SBH NA NA SGP 10.12 $132.98 WLA 7.04 $92.51 Aren't these numbers crazy? If this is any indication of what lies ahead in the future I'm gonna keep on adding more and more and more and more of PNU to my portfolio. Hope this has helped some and just for the hec of it I also included a chart of market caps below (PNU's being the smallest) in order from highest to lowest. Enjoy your weekend. Symbol Market Cap (in billions $) MRK $158.371 PFE $153.819 BMY $119.999 GLX $109.368 (may be a little bit off) JNJ $96.647 LLY $72.674 SGP $72.174 SBH $67.805 (may be a little bit off) ABT $67.724 AHP $64.974 WLA $60.898 PNU $24.733<<