Put me down for SLP
I was going to do FTK, but 2Morrows has got it, and I felt like living a little dangerously with this one.
The numbers won't impress you. Earnings last Q were .03 (250K) and the stock is priced at 6.5..after today's correction. ..oops 6.95 (rallyed eod). It's a small company with only about 7.5M shares outstanding. Several years back, we knew it as SIMU.ob in the buck range. They split 2:1 last Fall, driving the price down to the 2's. You see what I mean by living dangerously.
Anyway, it's a software company, involved with biochemisty/physiology and the like. Their GastroPlus simulation software "simulates the dissolution and absorption of a drug in the human gastrointestinal tract", according to the company. They've had modest sales for the last few years, but have been working closely with the major drug company, Hoffman-LaRoche, and have recently announced a renewal and expanded multi-year contract with them. There was a second major contract announcement with another un-named major drug company (possibly nearby Merck?). Recently, they announced the FDA would be licensing their software. So, three major announcements in recent months. I don't think these will be huge in dollar value, and I don't think it affects the next earnings report on Jan 16. Still, I think they could be on the cusp of a new level, where quarters are coming out .10+. It doesn't take much with the low share number, and there are lots of drug companies and researchers out there. I think they maintain a high PE and could well get into the teens and eventually the 20's.
The one thing that put me over the top as far as recommending it today was a glance at Telechart 2005's "Balance of Power" indicator of accumulation/distribution. The chart showed daily full-scale readings on the positive side. It had the third highest reading today of my list of 80 stocks. So, it wasn't under distribution today despite pulling back.
