PharmChem Laboratories Inc (fka PCHM)

[LMLYP]

Look at these operating margin trends.

2012 3%

2013 7%

2014 18%

2015 20%

2016 25%

2017 26%

2018 28%

2019 29%

2020 First Half 33%


Their cash position went up today. It will go up tomorrow. And the next day and day after that. We are also approaching a sales growth cycle we have not seen.

Credit managements decisions to not meaningfully increase payroll, to outsource IT and to find other ways to not add to costs.

I always look at OTC markets to see if the number of six employees remains unchanged, which somehow it always does.

Additionally, gross margins continue to run at 63-64%. It is the same staggering number as it was in 2010. That's more impressive because management warned of otherwise in the past two years.

It feels very much like a special dividend season, and PCHM has the best magicment team.