PharmChem Laboratories Inc (PCHM)

[LMLYP]

They said sales growth could ease somewhat and that they may not be able to pass along any cost increases. They also said the opioid crisis is an opportunity and that costs can decrease. I used the more conservative statements. As comparison, we are coming off three years of sales growth of 29%, 28%, and 42%.


MODELS

2017 Sales 5 mm (up 900K) (up 18%)
2018 Sales 5.8 mm (up 800K) (up 16%)

2017 EPS 22.2 cents (up 28%)
2018 EPS 26 cents (up 12%)

2017 Cash 3.7 million (up 800K) or 64 cents a share
2018 Cash 4.4 million (up 700K) or 76 cents a share



They did beat eps estimates last year. I had it at 12.5 cents and it came in at 17.3 cents.


Are they going to earn more than 30 cents a share this year? I am low at 26 cents.


The next letter is going to be very interesting.

$42 LMLYP