Savvy Trades and Investments

[SSKILLZ1]

PAHC

Brought PAHC at $20.44 today, here is what I like.

I was looking for a way to play the animal health market. As one knows ZTS the big one in the space trades at a whopping 26x this years estimates. I'm not saying for a second PAHC should trade at a 26 multiple, but why not a 15 multiple.

PAHC is showing great growth albeit thanks to the recent acquisition, but still guiding for $1.87-2.01 is impressive growth. I think they will earn about $2.00 this year, And maybe $2.20-2.30 next year. Hence why I see this stock trading in the low to mid 30's over the next 6-12 months. I was very impressed with there last quarter and have been waiting for an opportunity to get into this animal health name. I like the market PAHC is in, and I think it offers a very attractive investment opportunity here.

Conclusion: I like PAHC a lot here and will buy more on weakness. I think this is a good sector to buy into. Time will tell. All is just my opinion, and I could always be wrong though.