Why ANI Pharmaceuticals Inc. Shares Shot Higher

ANI Pharmaceuticals is off to the races after reporting its fourth-quarter earnings results. Can shares head higher or should investors head for the exits?

Feb 18, 2014 at 1:59PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ANI Pharmaceuticals (NASDAQ:ANIP), a specialist in the development and marketing of branded and generic pharmaceutical products, jumped as much as 15% after the company reported fourth-quarter earnings results.

So what: Given that ANI Pharmaceuticals is a smaller company (with a market cap just above $200 million) there were no Wall Street estimates to match up to, allowing investors to push its share price higher or lower based solely on the raw results. For the quarter, revenue rose 98% to $10.5 million, from $5.3 million in the prior year. Net income tallied $3.4 million, or $0.35 per share, and reversed a year-ago loss of nearly $1.2 million. ANI noted that prescription sale revenue spiked 170% during the quarter to $8.8 million, primarily due to better sales and a higher price for its Esterified Estrogens with Methyltestosterone Tablet, or EEMT. During the quarter, ANI also announced the acquisition of 31 generic products from Teva Pharmaceutical (NYSE:TEVA) for $12.5 million, bringing its current and developing pipeline to 38 products.

Now what: Simply put, this is what happens when a company grows its top line organically and turns losses into profits. It's especially beautiful because we get to witness the reaction of shareholders who have not been clouded by Wall Street's "guesstimates." If ANI is already profitable from its EEMT product, chances are good that the addition of Teva's generic products is only going to further boost that profitability in 2014. ANI has already had quite the run, so I'm a bit skeptical about insinuating that it could head even higher, but that isn't out of the question.

ANI Pharmaceuticals may be roaring higher today, but it'll likely be hard-pressed to keep up with this top stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool recommends Teva Pharmaceutical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information