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Guess what day it is? Mike Mike Mike Mike …actually it’s only Tuesday, but it feels like HUMP DAY because today I sold another winner. Yep yep yep yep yep yep
Today I sold ACET at 28.32. That’s a 20% gain over my purchase price of 23.66. Over the same period when I owned ACET, the S&P 500 was up only 7%. That’s not quite good enough. You see, $$$MR.
MARKET$$$ always wins because $$$MR. MARKET$$$ is a WINNER! $$$MR. MARKET$$$ dominates everything. Can’t lose…can’t lose…can’t lose! I think I’ll go drink some boooooooze.
Did you buy any ACET? You? YOU?? YOU??!!! How do you like me now? I am so amazing.
That makes 61 consecutive profitable trades of 15% or better. Roger Maris hit 61 home runs, then the other guys passed him, but they were all juiced up on steroids, so 61 is still a good number. $$$MR.
MARKET$$$ could hit 100 home runs if he played baseball, but picking stocks is a much easier way to get paid.
I am HUGE! Bring me your finest meats and cheeses. Just how HUGE is $$$MR. MARKET$$$?
· He finds gold, only using his since of smell.
· The Alamo remembers him
· He once changed a lightbulb by offering it kind words.
· The godfather once made him an offer……..he refused it.
What does this all mean? It means that $$$MR. MARKET$$$ is going to pick another winning stock. Yes that’s right…even in this market, he will find a winner. Why does he say that? He has 61 very good reasons.
I am HUGE!
$$$MR. MARKET$$$
================================================== =========================
12-28-2013, 03:37 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Default ACET ==> The Festivus Winner
This is the story of Cowboy Bob Orton, otherwise known as “Ace”.
He was aligned with Roddy Piper until he turned Benedict Arnold and switched sides to join Adrian Adonis.
The build up was tremendous. Piper used to make fun of Adrian and talk smack about him on the trendsetting interview segment, Piper's Pit. With Cowboy Bob Orton, his longtime buddy, by his side, they would constantly mock Adrian. Piper had nicknamed Orton, “Ace”, representing Orton’s unmitigated loyalty to Piper. Until Adonis shocked the world by usurping Piper’s Pit with his own interview show, “The Flower Shop” and having Orton now as his own bodyguard, wearing a pink hat. Much like the classic Shakespearean quotation, “Es Tu, Brute?”, Piper turned to Orton and inquired, “ACE?”. To which Orton replied, “But Roddy, you were paying me peanuts”.
Piper got his revenge, trashing the flower shop with a baseball bat and defeating Adrian Adonis at Wrestlemania. The moral of the story is, everyone always need an Ace.
Bearing that in mind, yesterday I bought Aceto Corporation (ACET) at 23.66. I will sell it in 4 to 6 weeks at 27.31. Here’s why I like ACET:
Holy crap..look at this chart!
This stock is up 135% in the last 12 months yet its PE is still less than 23. How do they give away stocks like this so cheap? That’s ridonculous.
Aceto is a virtual manufacturing company that markets and sells a variety of pharmaceutical and performance chemical products on a global basis. In the last fifteen years, the company has shifted from primarily representing US and European manufacturers to representing Asian producers. Today, about 68% of Aceto’s products originate from Asia. Concurrent with the company’s global migration, there has also been an industry migration from industrial chemicals to pharmaceuticals. Many of their industrial chemicals also have pharmaceutical applications, which offer more attractive margins and have less cyclical dependence. This shift to the pharmaceutical markets has been a game changer for Aceto.
With the introduction of generic drugs into the market a number of years ago, the need for pharmaceutical involvement became much greater and Aceto was in the right position at the right time. At the same time, they have also been developing supplier relationships with companies in Asia that do not have the capability to enter into the US and European markets on their own. These companies were looking to go up the value-added chain into finished dosage form pharmaceuticals and Aceto partnered with them as suppliers. The company follows the status of branded drugs that are going off patent, then targets the generic drug makers that will need bulk chemicals to make cheaper versions. After that, it goes to chemical producers -- mostly overseas -- and gets raw chemicals used to make a final drug. Aceto has supplied chemicals for more than 100 drugs that have gone off patent. The earnings impact has been phenomenal.
ACET is strategically positioned for growth in several market segments, emphasizing Health Sciences, through larger geographic reach, additional product offerings and bolt on acquisitions. Their current capacity is sufficient to leverage higher levels of sales without a concurrent increase in SG&A. They have an experienced senior management team and their financial position provides a foundation for future growth. Essentially we are seeing a company right in its sweet spot.
The bricks and mortar of the company has always been the chemicals side of the business, which represents about 37% of their sales. The pharmaceuticals segment represents 37% of sales and human health constitutes the remaining 26%. Aceto plans to continue supporting and growing all of the businesses, but expect to see the pharmaceutical and human health businesses become a relatively larger percentage of the overall business in the future. Human health is growing well in excess of 20% a year and pharmaceutical ingredients are growing more than 10% a year.
The absolute number of drugs that are going to become generic over the next five to ten years is continuing to grow. Aceto expects this is going to be a very robust area. They are currently investing heavily in their new product development pipeline, and plan to continue to do so in the future.
With business operations in nine countries, ACETO distributes over 1,100 chemical compounds used principally as finished products or raw materials in the pharmaceutical, nutraceutical, agricultural, coatings and industrial chemical industries.
Aceto partners with customers during the product development process, creating new applications for existing products, as well as new product sourcing opportunities. They offer solutions for product and production challenges, while assisting with quality assurance, government approvals and compliance. All of these value-added services allow Aceto’s customers to be more responsive to their end use customers and more competitive in the global marketplace.
In December 2010, Aceto acquired Rising Pharmaceuticals, Inc., a finished dosage form marketing and distribution company with 40 years of experience in the U.S. generics business, providing Aceto with a platform for growth in this rapidly growing industry. With the Rising brand label, they have been able to expand their direct involvement in the pharmaceutical manufacturing space through greater global awareness of their capabilities in the marketing of pharmaceutical intermediates, active ingredients and the ultimate end-products, finished dosage form generics.
Aceto supplies the raw materials used in the production of nutritional and packaged dietary supplements, including vitamins, amino acids, iron compounds and biochemicals used in pharmaceutical and nutraceutical preparations. The Performance Chemicals segment is made up of two product groups: Specialty Chemicals and Agriculture Protection Products. Aceto is a major supplier to many different industrial segments that require outstanding performance from chemical raw materials and additives. They provide chemicals which make plastics, surface coatings, textiles, fuels and lubricants perform to their designed capabilities. These additive specialty products include antioxidants, photo initiators, catalysts, curatives, brighteners and adhesion promoters.
Aceto is at the forefront as a supplier of chemicals to ecofriendly technologies. These growing technologies are critical in protecting and enhancing the world’s ecology. They provide specialty chemicals for the food, beverage and fragrance industries. Aceto’s raw materials are also used in sophisticated technology products, such as high-end electronic parts (circuit boards and computer chips) and binders for specialized rocket fuels. Aceto is also a leader in the supply of diazos and couplers to the paper and film industries. Specific end uses for these products include microfilm, blueprints and photo tooling of printed circuit boards.
The agricultural world is dependent on a large variety of deterrent products and Aceto has become a valued partner to the global generic agricultural industry by providing superior quality functional products. One of Aceto’s most widely used agricultural protection products is a sprout inhibitor that extends the storage life of potatoes. The products they supply include herbicides, fungicides and insecticides which control weed growth as well as the spread of insects and microorganisms that can severely damage plant growth.
Over the past several years, ACET has successfully brought numerous products to market and have several additional products currently under review at the U.S. EPA for registration. This is the agency which governs admittance to this generic industry. In addition, they have a strong pipeline, which includes future additions to their product portfolio. The combination of their global sourcing and regulatory capabilities makes the generic agricultural market a niche for them.
The Pharmaceutical Ingredients segment has two product groups: Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (APIs). As the use of generic drugs has grown tremendously over the years, Aceto’s presence in this market also increased dramatically, both domestically and internationally. They supply APIs to all the major generic drug companies, who view Aceto as a valued partner in their effort to develop and market generic drugs.
The process of introducing a new API from pipeline to market spans a number of years and begins with Aceto partnering with a generic pharmaceutical manufacturer and jointly selecting an API, several years before the expiration of a composition of matter patent, for future generisizing. Aceto then identifies the appropriate supplier and ensures they meet the highest standards of quality to comply with regulations. The generic pharmaceutical company will submit the Abbreviated New Drug Application (ANDA) for FDA approval or European-equivalent approval. The introduction of the API to market occurs after all the development testing has been completed and the ANDA or European-equivalent is approved and the patent expires or is deemed invalid. Aceto, at all times, has a robust pipeline of APIs poised to reach commercial levels, both in the United States and Europe. It’s the recipe for an earnings slot machine!
Aceto has long been a supplier of pharmaceutical intermediates, the complex chemical compounds that are the building blocks used in producing APIs. These are the critical components of all drugs, whether they are already on the market or currently undergoing clinical trials. Faced with significant economic pressures as well as ever-increasing regulatory barriers, the innovative drug companies look to Aceto as a source for high quality intermediates.
Strategic relationships with manufacturers of pharmaceutical, nutraceutical, agricultural and specialty chemical products in the United States and internationally serve as a valuable resource to Aceto customers, enabling them to procure vital chemical based products necessary for their diverse and complex applications. A strong global technical network differentiates Aceto from commodity distribution companies. With regional managers in the United States, Europe and Asia, they provide regulatory support and quality assurance for customers and suppliers worldwide. Their regulatory network ensures that the product quality is manufactured to applicable required standards and conforms to customer specifications for its intended end use. These relationships have taken years to create and build and they will not easily be recreated or duplicated by a competitor. This means years of protected earnings for Aceto!
Their presence in China, Germany, France, the Netherlands, Singapore, India, Hong Kong, the United Kingdom and the United States, along with strategically located warehouses worldwide, enable ACET to respond quickly to demands from customers worldwide, assuring that a consistent, high-quality supply of pharmaceutical, nutraceutical, specialty chemicals and agricultural protection products are readily accessible. They are able to offer their customers competitive pricing, continuity of supply, and quality control.
They remain confident about their business prospects. Aceto anticipates organic growth through their plans to introduce new products for finished dosage form generic drugs, the further globalization of their nutraceutical business, the continued globalization of their Performance Chemicals business, the expansion of their agricultural protection products by investing in product lines and intellectual property, the continued enhancement of their sourcing operations in China and India, and the steady improvement of their quality assurance and regulatory capabilities.
Many big drugs have come off patent and continue to do so. Greater demand for generic drugs will boost sales. Our aging population will need more pills and other drugs. Aceto will capitalize on many drugs coming off patent and will reap the reward of having strong relationships with vital suppliers and manufacturers. Aceto audits factories in the Third World and handles regulatory, customs and quality-control issues for its customers.
Aceto supplies a broard array of 250 popular dietary supplements. Fish Oil, Omega 3, Glucosamine, Probiotics, Vitamins, Amino Acids, Green Coffee Extracts….sound familiar? I eat all of this stuff and ACET makes all of it.
ACET is strategically positioned for growth through geographic expansion, new product offerings and bolt on acquisitions. Their strong financial position supports their ambitious growth initiatives.
So..do these guys make money? What do you think?
ACET has a track record of 47 consecutive years of dividend payments, providing a constant return to shareholders. Over the last 5 years, the CAGR net sales has grown 12%, from $323 million to $500 million in FT 2013. The earnings growth is even more impressive. Over the same period, CAGR is 26% growing from $0.35/share to $0.89 per share. EBITDA Margins are well over 9% now. Return on Equity is over 12%.
ACET doesn’t give guidance to the ANAL-ysts, and if you read the transcript from the last conference call, the ANAL-ysts are crying like babies who had their candy stolen because they want guidance to do their job. I can’t believe how stupid these losers are. Just go back and look at the numbers and you can make your own projections based on the macro conditions of the markets.
Here…let me do it. $$$MR. MARKET$$$ projects that 2014 revenues will be $644 million and associated earnings will be $1.22/share. If you take the PE of 23 and multiply it by the earnings of $1.09/share, you get a share price of $28.06 which is well past my sell target. What was so hard about that?
I’ll let Sal Guccione tell you the story. He’s the CEO and not Bob Guccione’s brother:
“As you might guess from our earnings release, I'm extremely pleased with the start of our fiscal 2014 year. This was a really solid quarter for us. We continue to execute on our strategic plans and, once again, achieved very strong financial results and also set several new records, so I'm pleased with that.
Our total company net sales this quarter improved by nearly 16% versus last year to $129 million versus the $112 million achieved last year first quarter. More notably, I'm happy to say that we reported record quarterly net income of $11.3 million this quarter, which is more than double the net income of $4.8 million achieved in the first quarter of fiscal 2013.
With respect to diluted net income per share, the first quarter of fiscal '14, we achieved $0.40 a share, which is also a new record, and is also more than double our EPS of $0.18 achieved in the first quarter of last year. So really a tremendous job by our team all the way around.
In particular, the quarter's excellent results are due to strong performances by both our Human Health and our Pharma Ingredients business segments. The Human Health segment grew by 46% in the quarter, now to nearly $39 million in the 1 quarter versus $26.5 million last year, so that segments continued to grow extremely well for us. It's benefited, as it has in the past, it's benefited nicely from carryover effect of products that we've launched over the past 12 months or so. And in particular, our Rising Pharmaceutical business is continuing strong and has been continues to be a strong contributor to ACETO's recent success. Having said that though, I also remain very excited about our Nutritional products business, which is part of the Human Health segment. That business experienced a nice uptick in sales in this quarter, also along with Rising. And its customers have shown increased demand for its new products also. So again, very strong quarter for Human Health and hope to keep that going.
The Pharma Ingredient segment also had a very good result, as sales grew by 19% this quarter versus the first quarter of last year, and reached a level of $49.4 million in revenue. That growth, as expected, was driven by large reorder of one of our Active Pharmaceutical Ingredients and also driven by some strong sales performance in certain pharma intermediates. I'm very pleased with that news and I'm looking forward to future similar successes in this segment.
Looking ahead to the balance of 2014. I'm confident in our ability to execute on our plans and I believe we're well-positioned for another solid year. We plan to use our strong balance sheet and cash flow to continue to reduce our debt, fund our internal growth initiatives, as well as seek strategic acquisitions so that we can continue to create long-term shareholder value. We feel comfortable that we'll continue to execute on our plans and we feel good about the year.”
So if I have a ten showing, I am going to count on this Ace to get me blackjack and more money, more money more money!
If you like this write up, send to a friend!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
Last edited by mrmarket; 01-02-2014 at 06:46 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
Today I sold ACET at 28.32. That’s a 20% gain over my purchase price of 23.66. Over the same period when I owned ACET, the S&P 500 was up only 7%. That’s not quite good enough. You see, $$$MR.
MARKET$$$ always wins because $$$MR. MARKET$$$ is a WINNER! $$$MR. MARKET$$$ dominates everything. Can’t lose…can’t lose…can’t lose! I think I’ll go drink some boooooooze.
Did you buy any ACET? You? YOU?? YOU??!!! How do you like me now? I am so amazing.
That makes 61 consecutive profitable trades of 15% or better. Roger Maris hit 61 home runs, then the other guys passed him, but they were all juiced up on steroids, so 61 is still a good number. $$$MR.
MARKET$$$ could hit 100 home runs if he played baseball, but picking stocks is a much easier way to get paid.
I am HUGE! Bring me your finest meats and cheeses. Just how HUGE is $$$MR. MARKET$$$?
· He finds gold, only using his since of smell.
· The Alamo remembers him
· He once changed a lightbulb by offering it kind words.
· The godfather once made him an offer……..he refused it.
What does this all mean? It means that $$$MR. MARKET$$$ is going to pick another winning stock. Yes that’s right…even in this market, he will find a winner. Why does he say that? He has 61 very good reasons.
I am HUGE!
$$$MR. MARKET$$$
================================================== =========================
12-28-2013, 03:37 PM #1 mrmarket's Avatar mrmarket mrmarket is online now
Administrator
Default ACET ==> The Festivus Winner
This is the story of Cowboy Bob Orton, otherwise known as “Ace”.
He was aligned with Roddy Piper until he turned Benedict Arnold and switched sides to join Adrian Adonis.
The build up was tremendous. Piper used to make fun of Adrian and talk smack about him on the trendsetting interview segment, Piper's Pit. With Cowboy Bob Orton, his longtime buddy, by his side, they would constantly mock Adrian. Piper had nicknamed Orton, “Ace”, representing Orton’s unmitigated loyalty to Piper. Until Adonis shocked the world by usurping Piper’s Pit with his own interview show, “The Flower Shop” and having Orton now as his own bodyguard, wearing a pink hat. Much like the classic Shakespearean quotation, “Es Tu, Brute?”, Piper turned to Orton and inquired, “ACE?”. To which Orton replied, “But Roddy, you were paying me peanuts”.
Piper got his revenge, trashing the flower shop with a baseball bat and defeating Adrian Adonis at Wrestlemania. The moral of the story is, everyone always need an Ace.
Bearing that in mind, yesterday I bought Aceto Corporation (ACET) at 23.66. I will sell it in 4 to 6 weeks at 27.31. Here’s why I like ACET:
Holy crap..look at this chart!
This stock is up 135% in the last 12 months yet its PE is still less than 23. How do they give away stocks like this so cheap? That’s ridonculous.
Aceto is a virtual manufacturing company that markets and sells a variety of pharmaceutical and performance chemical products on a global basis. In the last fifteen years, the company has shifted from primarily representing US and European manufacturers to representing Asian producers. Today, about 68% of Aceto’s products originate from Asia. Concurrent with the company’s global migration, there has also been an industry migration from industrial chemicals to pharmaceuticals. Many of their industrial chemicals also have pharmaceutical applications, which offer more attractive margins and have less cyclical dependence. This shift to the pharmaceutical markets has been a game changer for Aceto.
With the introduction of generic drugs into the market a number of years ago, the need for pharmaceutical involvement became much greater and Aceto was in the right position at the right time. At the same time, they have also been developing supplier relationships with companies in Asia that do not have the capability to enter into the US and European markets on their own. These companies were looking to go up the value-added chain into finished dosage form pharmaceuticals and Aceto partnered with them as suppliers. The company follows the status of branded drugs that are going off patent, then targets the generic drug makers that will need bulk chemicals to make cheaper versions. After that, it goes to chemical producers -- mostly overseas -- and gets raw chemicals used to make a final drug. Aceto has supplied chemicals for more than 100 drugs that have gone off patent. The earnings impact has been phenomenal.
ACET is strategically positioned for growth in several market segments, emphasizing Health Sciences, through larger geographic reach, additional product offerings and bolt on acquisitions. Their current capacity is sufficient to leverage higher levels of sales without a concurrent increase in SG&A. They have an experienced senior management team and their financial position provides a foundation for future growth. Essentially we are seeing a company right in its sweet spot.
The bricks and mortar of the company has always been the chemicals side of the business, which represents about 37% of their sales. The pharmaceuticals segment represents 37% of sales and human health constitutes the remaining 26%. Aceto plans to continue supporting and growing all of the businesses, but expect to see the pharmaceutical and human health businesses become a relatively larger percentage of the overall business in the future. Human health is growing well in excess of 20% a year and pharmaceutical ingredients are growing more than 10% a year.
The absolute number of drugs that are going to become generic over the next five to ten years is continuing to grow. Aceto expects this is going to be a very robust area. They are currently investing heavily in their new product development pipeline, and plan to continue to do so in the future.
With business operations in nine countries, ACETO distributes over 1,100 chemical compounds used principally as finished products or raw materials in the pharmaceutical, nutraceutical, agricultural, coatings and industrial chemical industries.
Aceto partners with customers during the product development process, creating new applications for existing products, as well as new product sourcing opportunities. They offer solutions for product and production challenges, while assisting with quality assurance, government approvals and compliance. All of these value-added services allow Aceto’s customers to be more responsive to their end use customers and more competitive in the global marketplace.
In December 2010, Aceto acquired Rising Pharmaceuticals, Inc., a finished dosage form marketing and distribution company with 40 years of experience in the U.S. generics business, providing Aceto with a platform for growth in this rapidly growing industry. With the Rising brand label, they have been able to expand their direct involvement in the pharmaceutical manufacturing space through greater global awareness of their capabilities in the marketing of pharmaceutical intermediates, active ingredients and the ultimate end-products, finished dosage form generics.
Aceto supplies the raw materials used in the production of nutritional and packaged dietary supplements, including vitamins, amino acids, iron compounds and biochemicals used in pharmaceutical and nutraceutical preparations. The Performance Chemicals segment is made up of two product groups: Specialty Chemicals and Agriculture Protection Products. Aceto is a major supplier to many different industrial segments that require outstanding performance from chemical raw materials and additives. They provide chemicals which make plastics, surface coatings, textiles, fuels and lubricants perform to their designed capabilities. These additive specialty products include antioxidants, photo initiators, catalysts, curatives, brighteners and adhesion promoters.
Aceto is at the forefront as a supplier of chemicals to ecofriendly technologies. These growing technologies are critical in protecting and enhancing the world’s ecology. They provide specialty chemicals for the food, beverage and fragrance industries. Aceto’s raw materials are also used in sophisticated technology products, such as high-end electronic parts (circuit boards and computer chips) and binders for specialized rocket fuels. Aceto is also a leader in the supply of diazos and couplers to the paper and film industries. Specific end uses for these products include microfilm, blueprints and photo tooling of printed circuit boards.
The agricultural world is dependent on a large variety of deterrent products and Aceto has become a valued partner to the global generic agricultural industry by providing superior quality functional products. One of Aceto’s most widely used agricultural protection products is a sprout inhibitor that extends the storage life of potatoes. The products they supply include herbicides, fungicides and insecticides which control weed growth as well as the spread of insects and microorganisms that can severely damage plant growth.
Over the past several years, ACET has successfully brought numerous products to market and have several additional products currently under review at the U.S. EPA for registration. This is the agency which governs admittance to this generic industry. In addition, they have a strong pipeline, which includes future additions to their product portfolio. The combination of their global sourcing and regulatory capabilities makes the generic agricultural market a niche for them.
The Pharmaceutical Ingredients segment has two product groups: Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (APIs). As the use of generic drugs has grown tremendously over the years, Aceto’s presence in this market also increased dramatically, both domestically and internationally. They supply APIs to all the major generic drug companies, who view Aceto as a valued partner in their effort to develop and market generic drugs.
The process of introducing a new API from pipeline to market spans a number of years and begins with Aceto partnering with a generic pharmaceutical manufacturer and jointly selecting an API, several years before the expiration of a composition of matter patent, for future generisizing. Aceto then identifies the appropriate supplier and ensures they meet the highest standards of quality to comply with regulations. The generic pharmaceutical company will submit the Abbreviated New Drug Application (ANDA) for FDA approval or European-equivalent approval. The introduction of the API to market occurs after all the development testing has been completed and the ANDA or European-equivalent is approved and the patent expires or is deemed invalid. Aceto, at all times, has a robust pipeline of APIs poised to reach commercial levels, both in the United States and Europe. It’s the recipe for an earnings slot machine!
Aceto has long been a supplier of pharmaceutical intermediates, the complex chemical compounds that are the building blocks used in producing APIs. These are the critical components of all drugs, whether they are already on the market or currently undergoing clinical trials. Faced with significant economic pressures as well as ever-increasing regulatory barriers, the innovative drug companies look to Aceto as a source for high quality intermediates.
Strategic relationships with manufacturers of pharmaceutical, nutraceutical, agricultural and specialty chemical products in the United States and internationally serve as a valuable resource to Aceto customers, enabling them to procure vital chemical based products necessary for their diverse and complex applications. A strong global technical network differentiates Aceto from commodity distribution companies. With regional managers in the United States, Europe and Asia, they provide regulatory support and quality assurance for customers and suppliers worldwide. Their regulatory network ensures that the product quality is manufactured to applicable required standards and conforms to customer specifications for its intended end use. These relationships have taken years to create and build and they will not easily be recreated or duplicated by a competitor. This means years of protected earnings for Aceto!
Their presence in China, Germany, France, the Netherlands, Singapore, India, Hong Kong, the United Kingdom and the United States, along with strategically located warehouses worldwide, enable ACET to respond quickly to demands from customers worldwide, assuring that a consistent, high-quality supply of pharmaceutical, nutraceutical, specialty chemicals and agricultural protection products are readily accessible. They are able to offer their customers competitive pricing, continuity of supply, and quality control.
They remain confident about their business prospects. Aceto anticipates organic growth through their plans to introduce new products for finished dosage form generic drugs, the further globalization of their nutraceutical business, the continued globalization of their Performance Chemicals business, the expansion of their agricultural protection products by investing in product lines and intellectual property, the continued enhancement of their sourcing operations in China and India, and the steady improvement of their quality assurance and regulatory capabilities.
Many big drugs have come off patent and continue to do so. Greater demand for generic drugs will boost sales. Our aging population will need more pills and other drugs. Aceto will capitalize on many drugs coming off patent and will reap the reward of having strong relationships with vital suppliers and manufacturers. Aceto audits factories in the Third World and handles regulatory, customs and quality-control issues for its customers.
Aceto supplies a broard array of 250 popular dietary supplements. Fish Oil, Omega 3, Glucosamine, Probiotics, Vitamins, Amino Acids, Green Coffee Extracts….sound familiar? I eat all of this stuff and ACET makes all of it.
ACET is strategically positioned for growth through geographic expansion, new product offerings and bolt on acquisitions. Their strong financial position supports their ambitious growth initiatives.
So..do these guys make money? What do you think?
ACET has a track record of 47 consecutive years of dividend payments, providing a constant return to shareholders. Over the last 5 years, the CAGR net sales has grown 12%, from $323 million to $500 million in FT 2013. The earnings growth is even more impressive. Over the same period, CAGR is 26% growing from $0.35/share to $0.89 per share. EBITDA Margins are well over 9% now. Return on Equity is over 12%.
ACET doesn’t give guidance to the ANAL-ysts, and if you read the transcript from the last conference call, the ANAL-ysts are crying like babies who had their candy stolen because they want guidance to do their job. I can’t believe how stupid these losers are. Just go back and look at the numbers and you can make your own projections based on the macro conditions of the markets.
Here…let me do it. $$$MR. MARKET$$$ projects that 2014 revenues will be $644 million and associated earnings will be $1.22/share. If you take the PE of 23 and multiply it by the earnings of $1.09/share, you get a share price of $28.06 which is well past my sell target. What was so hard about that?
I’ll let Sal Guccione tell you the story. He’s the CEO and not Bob Guccione’s brother:
“As you might guess from our earnings release, I'm extremely pleased with the start of our fiscal 2014 year. This was a really solid quarter for us. We continue to execute on our strategic plans and, once again, achieved very strong financial results and also set several new records, so I'm pleased with that.
Our total company net sales this quarter improved by nearly 16% versus last year to $129 million versus the $112 million achieved last year first quarter. More notably, I'm happy to say that we reported record quarterly net income of $11.3 million this quarter, which is more than double the net income of $4.8 million achieved in the first quarter of fiscal 2013.
With respect to diluted net income per share, the first quarter of fiscal '14, we achieved $0.40 a share, which is also a new record, and is also more than double our EPS of $0.18 achieved in the first quarter of last year. So really a tremendous job by our team all the way around.
In particular, the quarter's excellent results are due to strong performances by both our Human Health and our Pharma Ingredients business segments. The Human Health segment grew by 46% in the quarter, now to nearly $39 million in the 1 quarter versus $26.5 million last year, so that segments continued to grow extremely well for us. It's benefited, as it has in the past, it's benefited nicely from carryover effect of products that we've launched over the past 12 months or so. And in particular, our Rising Pharmaceutical business is continuing strong and has been continues to be a strong contributor to ACETO's recent success. Having said that though, I also remain very excited about our Nutritional products business, which is part of the Human Health segment. That business experienced a nice uptick in sales in this quarter, also along with Rising. And its customers have shown increased demand for its new products also. So again, very strong quarter for Human Health and hope to keep that going.
The Pharma Ingredient segment also had a very good result, as sales grew by 19% this quarter versus the first quarter of last year, and reached a level of $49.4 million in revenue. That growth, as expected, was driven by large reorder of one of our Active Pharmaceutical Ingredients and also driven by some strong sales performance in certain pharma intermediates. I'm very pleased with that news and I'm looking forward to future similar successes in this segment.
Looking ahead to the balance of 2014. I'm confident in our ability to execute on our plans and I believe we're well-positioned for another solid year. We plan to use our strong balance sheet and cash flow to continue to reduce our debt, fund our internal growth initiatives, as well as seek strategic acquisitions so that we can continue to create long-term shareholder value. We feel comfortable that we'll continue to execute on our plans and we feel good about the year.”
So if I have a ten showing, I am going to count on this Ace to get me blackjack and more money, more money more money!
If you like this write up, send to a friend!
I am HUGE!
$$$MR. MARKET$$$
www.mrmarketishuge.com
$$$MR. MARKET$$$ is a proprietary investor and does not provide individual financial advice. The stocks mentioned on this forum do not represent individual buy or sell recommendations and should not be viewed as such. Individual investors should consider speaking with a professional investment adviser before making any investment decisions.
Last edited by mrmarket; 01-02-2014 at 06:46 PM.
=============================
I am HUGE! Bring me your finest meats and cheeses.
- $$$MR. MARKET$$$
Comment