LCI
I've been a Buyer of LCI in the 26.40's today, I wouldn't be surprised to see it drop 3-5% more downside But I'm not risking missing it here for that.
1) LCI is very cheap Based on the midpoint of guidance they are expecting around $3.50 this year. Which I feel may be proven to be conservative. That is a fully taxed PE of 7.5 for a diversified drug company with and excellent pipeline of drugs coming. More importantly LCI taxes their earnings in non gaap, they don't appear to be taken any outrageous liberties that I have seen other companies take when calculating the numbers.
2) LCI The concern of Non gaap versus gaap. I get the concern when the difference is wide. But Lets face it even if you were not talking about a pharma you would probably take out restructuring expense hence gaap earnings are expected to be about $2.40 this year which isn't that wide of gaap. And lets face it is is less then 11 times GAAP numbers in my opinion, minus restructuring also pretty cheap.
3) LCI Has an impressive pipeline of new drugs that are close to coming or coming soon and ready to be lauched this is going to make a great avenue for growth going foward.
4) LCI if one read the 10k, they would realize that this is not a price riser in fact a lot of their drugs they have taken price concessions, not exactly what everyone is up in arms about so they are not exactly the kind of company in the crosshairs with their strategy.
Conclusion: I think LCI in the 26's is very attractive, and I will buy more on weakness, I think the stock is worth $38-40. About 11-12 Times Non gaap. All is just my opinion and I could always be wrong though.
AI
