Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, generic-drug maker Hi-Tech Pharmacal
With that in mind, let's take a closer look at Hi-Tech's business and see what CAPS investors are saying about the stock right now.
Hi-Tech facts
Headquarters (Founded) | Amityville, N.Y. (1982) |
Market Cap | $291.45 million |
Industry | Pharmaceuticals |
Trailing-12-Month Revenue | $164.63 million |
Management | Chairman/CEO David Seltzer (since 1998) CFO William Peters (since 2004) |
Return on Equity (Average, Past 3 Years) | 17% |
Cash/Debt | $45.2 million / $756,000 |
Competitors |
Mylan Watson Pharmaceuticals |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 92% of the 186 members who have rated Hi-Tech believe the stock will outperform the S&P 500 going forward. These bulls include toshimelonhead and Usnzth.
Just two weeks ago, toshimelonhead compared Hi-Tech to another potent generic play: "Hi-Tech sells generic prescription drugs, which is how people are saving money on healthcare costs. [Little debt] with much better fundamentals and more room to grow than [Perrigo
Over the past five years, in fact, Hi-Tech has grown its bottom line at an annual pace of 47.9% annually. That's faster than generic-drug stocks Mylan (3.5%), Watson (28.4%), and Teva Pharmaceutical
Last month, CAPS member Usnzth added some color to those growth numbers:
It appears that management has now figured out a working business model and their earnings for the past two years look pretty. They are in the middle of a high demand industry at a time when the population wave need more prescriptions and health care is a huge issue. They have a three prong attack on the market selling prescription drugs, generic drugs, and nutritional products.
Today, [Hi-Tech] has a P/E under 10
Minus the cash, the forward P/E is only 10
30% of shares held by insiders
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