CBST looks undervalued to me. any fundie investors on
this board? I am not a trader nor technical analyst. I buy based on fundies. CBST has a projected growth rate of around 25% by many analysts. I know they can be very wrong. But with a forward (2010) P/E of 12.8 and a PEG of around .6. this stock seems cheap. Not to mention many pundits see CBST as a takeover possibility. Just wondering why it can not break above 22 and hold. This would appear to be a $30 stock to me, at least based on the fundamentals. What am I missing.
---Last year I sent TOP Officers-5 at Astra Zeneca—5 at Novatis AG( CEO,PRES. and VP ect) this is what I sent them in the letter. Cubist Pharm.***it’s drug CUBICIN is growing fast 25% to 35% per qtr , and (CBST)already has COMPENTION and still grows fast—(at some point up to 1 Bill sales) it sold $280 Mill 07--$435 Mill 08 and est.09$540 to560 Mill. Also (CBST) will have $515 Mill cash at the end of this year. (CBST)also has other drugs it’s working on---2 in Phase II—2 in Phase I—also (CBST) is selling Aztrazeneca’s (MERREM drug) in the US Novartis AG bought three companies in 07---Mycograb,Aurograb and Tifacogin , now in 08 Protez at $ 300 Mill—for there drug is in phase II and wont be ready until ( if it works) until 2012---Now Novartis is ok and ready to launch CUBICIN in Turkey,Russia,Mexico,Brazil,Australia,New Zealand. This is huge--- AstraZeneca sells its drug (MERREM)in the US with (CBST). AstraZeneca is now trying to get an OK to sell CUBICIN in CHINA---(CHINA is three time bigger than the US). AstraZeneca also is going to sell CUBICIN in Asia,Middle East,and Africa I think both Novartis AG and AstraZeneca each will end going after (CBST)—AstraZeneca sells MERREM drug in the US with (CBST) and possibly selling CUBICIN in CHINA and other countries. Then with Novartis it will be selling CUBICIN around the world-----Then these companys pay (CBST) 30% on sells of CUBICIN. A) (CBST) will have over $500 Mill cash the end of 09 B) (CBST) is working on 4 other drugs 2on phase II,2 phase I C) (CBST) is selling CUBICIN in the US and is 25% to 35% per qtr growth I think the company (CBST) is going to go bought out higher than figured--$36 to $38
See todays MOTLEY FOOLS story(Sept 23 09)---called----this how you'll find value winners---CBST is in it and its P/E is 7.5 and future growth is 25% and its net profit is 38.9%---CUBIST PHARM--is CHEAP----