Lotus Pharmaceuticals Inc (LTUS)

[Headley Lamar]

They expect the new direct sales facility to be operational by Q3 2010 and expect revenues of $28M via their direct sales channel by 2012. If you couple that with the growth of their current products (they intend to introduce 5 new drugs in 2010) you have an impressive growth story. They had $2.5M in cash and $60M in shareholder equity as of September and a management team that loves to pay their way with cash. Little risk and a huge upside.

My 6 month price target is $3.20 based upon earnings growth and a 7x multiple. They won't be hanging around in at 3-4x earnings much longer IMO.