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Santarus, Inc. (SNTS) Message Board

  • stimey686 stimey686 Mar 5, 2013 8:26 AM Flag

    Motley fool must buy

    Regardless of Performance this Stock is a “Must-Buy!”

    In after-hours trading, shares of Santarus (NASDAQ: SNTS) are trading higher by 8.84% on volume of 240.1k. This large pop came after the biotechnology company reported earnings that crushed Wall Street’s consensus. The Street was expecting revenue of $62 million, but the company reported $70.2 million, and then with its EPS of $0.08 it also beat expectations by $0.07 (take a minute to think about that). Therefore, this was one of the more impressive quarters of the earnings season.

    The company’s 65% top-line growth is remarkable, and furthermore is its bottom line growth of 180% and its full-year EPS guidance between $0.92 and $1.00. This compares favorably to The Street’s expectations of just $0.70 and shows a continued strength in margin growth. As a result, this is a must-buy in biotechnology, a stock that is growing as fast as possible with a one-year return of 200%.

    Even though the company is growing by more than 60% year-over-year, this is a stock that is trading with a price/sales of just 4.0 and a forward P/E ratio near 10.0 (after updated guidance). With that being said, I have no idea how the stock will trade on Tuesday. It is possible that it will open and trade flat or even lower, as stocks tend to trade illogical following earnings.

    However, this is a stock that can’t appreciate fast enough to keep up with its fundamental growth, and was trading with after-hour gains of almost 9%. Even if the gains hold, I still think this is a “buy” and if it ticks lower I will buy on every dip, because this is a stock that is worth every bit of $20 and then some.

    Sentiment: Strong Buy

 
SNTS
31.960.00(0.00%)Dec 31 4:00 PMEST

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