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PMD |
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Any opinions/thoughts on this company which is listed on the AMEX for around $7/share. Psychemedics has been awarded the only two U.S. patents ever granted for the detection of drugs in hair, and recently was awarded a patent in Europe.
Psychemedics seems to be a very little followed biotech company which uses a patented technology to detect for the presence of drugs such as marijuana, cocaine, opiates, PCP, etc., by using hair taken from the top of the head. The advantage of using hair instead of urine in testing applicants, for new jobs for example, is that drug use will be evident in hair for a few months after use, whereas it will dissapear from urine in days or weeks.
Their test is much more accurate than urine tests that are most widely used by companies today. Their client list includes over 500 big name companies such as Blockbuster, the Federal Reserve Banks, Harvard University, Columbia University, Toyota, BMW, Volvo, Astra Pharmaceuticals, Caesars, MGM, Bally, and so on. Their lists keeps on growing.
In addition, an investment group led by Wayne Hyzuenga, billionaire founder of Blockbuster, has recently exercised an option to purchase 800,000 shares, and now has over 2 million shares in Psychemedics. There are about 22 million shares outstanding, with officers and directors owning about 35%.
Sales in 1995 were $10.1 million and net income per share was $0.07. The 52 week hi/lo is 8 1/8 to 4 3/8, and the stock has a B rating in Investors Business Daily for accumulation/distribution.
When I invest in small caps I like to see big names having large stakes in the company. Wayne Hyzuenga built an empire in video retailing a la Blockbuster Entertainment, and also made Republic Waste a big name in garbage collection (he started with one garbage truck and turned it into a mamoth company today). Mr. Hyzuenga has had some pretty big successes in the past, and his stake in Psychemedics makes it something to look into.
Any thoughts?
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