I am a CPA veteran and stock analysis enthusiast that has been actively researching and following HITK for a long time. Sales, margins, and net profits for the company are growing off the charts over the past 6 months. They appear to have quietly arrived in the generic drug industry as a competitor on a new level. The company's trailing PE of 15 includes $1.5M earnings for the 2nd and 3rd qtrs of the prior fiscal year........but these amounts don't appear very relevant considering consecutive record breaking quarters of $5M and $8M earnings for the more recent 4th qtr of last year and the 1st qtr of the current fiscal year. I have been listening and participating on the company quarterly conference calls and weighing their comments about the future. I believe they will be reporting $8M+ earnings for the next two qtrs (i.e. the 2nd & 3rd qtr of this fiscal year). Note - the 2nd & 3rd qtrs are historically the company's best qtrs considering it is flu season.
Without considering other positive factors.....down economy (read more $$$ to be spent on generics), an aging population base, growth possibility for a company breaking out of its shell, I see the company as underpriced and the stock hitting 40-50 (still at a 15 PE) in the next 6 months as the upcoming 2nd and 3rd qtr earnings are released.
What are your thoughts?
Regards,
Todd Schaus
$20.64 (09/16/09)
