Savvy Trades and Investments

[Mermelstein]

INBP - Q4 isn't even their best Q of the year and they still reported really good numbers. Q1 and Q2 are their strongest quarters.

The issue as to why this stock isn't going to get a 20x multiple on earnings is because 90% of their business is with 2 customers. Now obviously those 2 customers are increasing business with them, so that's a good sign, but it's still a significant risk.

But I don't see any reason why this couldn't trade for a 10 p/e given their growth rate.

If Q4 has set the trend for 2020, then I don't think it's impossible for them to get to $0.15+ of eps. In which case, this looks absurdly cheap at $0.30.