MPH.V
I’ve been buy MPH.V in the $2.35-2.40 CAD over the last couple of weeks. Here is why I like this specialty pharma company.
1) MPH.V is growing rapidly with a 104% y/y revenue growth, and they said in the PR they expect their revs to continue grow further in upcoming quarters so this is a great growth story in the healthcare sector which is deserving of at least a 15 PE in my opinion.
2) MPH.V Earnings don’t look so hot, if you don’t dig and normalize earnings as I like to say. But with 423k in Stock based compensation that I don’t expect to appear in upcoming quarters, especially to that extent, 60 and 67k on Loss of debt and revaluation charges, and 36k for foreign exchange loss. If you ignore these charges one can argue they earned .05 in q1. I don’t think the market realizes this company is really this profitable right now, and they will figure that out in the next quarter, when the charges don’t appear, and with further top line growth where we could see earning in the .06-.07 range. So I think this is a growth story that is just getting better in my opinion. For those that like RX.V this one is super cheap in my opinion, and has great growth as well.
Conclusion: I think MPH.V is and enormous growth story, and when you look at normalized earnings trades at a very reasonable PE. I wouldn’t be surprised if the market takes this stock significantly higher over the rest of 2015 in my opinion. Time will tell. All is just my opinion, and I could always be wrong though.
