Friday, September 27, 2013

SKBI Is Inching Closer to Fair Value

As expected, the market is slowly starting to recognize the true value of SKBI. The details of the calculation of the true value of the company can be found in this previous article:

What has happened over the past couple of weeks had been a gradual adjustment of the P/E ratio of the company by investors to bring it more in line with the rest of the industry.

From now on the real treats will start after every quarterly release. After each of them, the company will announce that more of their factories are operational. 

The biggest kicker will happen when the vaccines factory start producing as well.

 As seen in their previous earning releases  vaccines have the highest operating margin among all the products manufactured by the company.

Since I published my analysis on the company, the stock went down. It has recently come back with a vengeance and is up over 100% since the April 2012 recommendation. As you can see in the table below, the stock still has a lot of room for growth in the future.

Feel free to let me know what you think about SKBI.

Disclosure: The author has a long position in SKBI.

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