This is the only biotech with lowest PE even though the debt is very low
Looks ABBV and huge load of debt and small income. .
The only thing that pushed DEPO price up was acquisition that did not go thru.
With no acquisition, DEPO has to stay below $20 for 2 or 3 years and then to see if it can generate any money.
HZNP needs DEPO desperately. No wonder it goes an extra mile to get it. If HZNP had any other choice then it could follow instead of tangling itself with lawsuit against DEPO.
DEPO may be a good fit, but DEPO BOD and management don't want quit because an aggressive man from HZNP wants to rule and order things around.
What will HZNP with its high PE do if it does not go create some excitement by shaking new kids on the block.
You are right about the market and biotech correction. They should not trade above PE of 15, especially those that depend on acquisitions for growth with borrowed money or issuing shares.
Look at DEPO which played with numbers to get to double digit price when it sold one of its drug. Money from that deal was counted as revenue and income for a few quarters giving expression that DEPO actually generating revenue and income until Nucynta deal was announced.
Again, the numbers that DEPO is producing mostly goes to interest payment and salesmen and not much to improve anything.
I say to DEPO, give it before the price drop below $20.
One thing is obvious, GILD is a cash cow, accumulating a lot of wealth by generating billions of cash per quarter, over twice as much as IBM, while putting around $1B in R&D per quarter.
So, while a lot of money is generated now, it also has a very strong future.
PE is under 10, something that is rare in this field but investors will catch up eventually.
DEPO is a company that tries very hard to stay above the water. Net income will be negative for one or two quarters, then a single digit net income for many quarters if things go right.
How much do you pay for the company? Something around $15 but hoping a buyer steps in and buys it around $20 or higher. HZNP offer was an angle from sky to rescue DEPO but not much good for depo management and bod who wanted to milk the company for many years.
No one is holding them from selling shares and pushing the price down.
There is no contract yet for HZNP to stay on any offer. It may lower its offer.
CRUS is on right track as you mentioned but there are things that are out of anyone control in this market.
What happens if OEM slows down significantly and at the same time there are much less demand for AAPL products. I mean, Chinese who are more conservative, will need to think about food and rent before throwing money at AAPL products. 1.3 B chinese have been shaked up by this market and they will not go on spending spree until things are settled down. Less involvement in this market for next few months is something that most people may think. Hard landing of Chinese market will affect US market one way or another.
Either we have to dive with it or stay away and watch it. The storm is coming and it will be painful.
we have to wait for China to drop another 20%. I am switching some of my money from CRUS to AAPL. AAPL may drop and bounce back later but this may not to be the case for all AAPL suppliers. After all, AAPL may change its mind about its suppliers at any time.
share buyback is only good for companies with tons of cash. If the market continue to drop, share buyback will have a minimum effect. In addition, growth will slow down. The cash shouldd be spent on R&D, debt reduction and possible acquisitions. CRUS is already doing it but the force of market cannot be stopped. If a tech stock is not growing then it is dead and no share buyback or any other artificial plan will do anything in the long run.
I am holding 50k of CRUS but I have to reduce and wait for lower prices when market bottom out.
$1.9 B market cap which includes $467 m for wolfson and another small one for $20 m. After all, CRUS reduced $225 m borrowed money to $160 m and added cash an becomes cash positive.
CRUS is at its lowest PE. Time for an opportunist step forward and offer a price. Even 2 times revenue which is around $40 per share is acceptable.
It is time for crus to show money for shareholders instead of issuing cheap shares for management.
Still cash positive after adding about $8/ share of acquisitions in past 12 months.
I do not see any change in average price of CRUS after subtracting $8 from average price.
This is not the case with QRVO after merger.
What I trying to say is that CRUS lags behind and $29 price is not significant even revenue is up by 50%.
It is time for CRUS to bring down the employees count and reduce other expenses.
Tim Cook has been very nice to Apple's suppliers in contrast to Steve Jobs.
Most suppliers were struggling at low or mid single digit prices. Steve Jobs was squeezing them and playing them against each others.
Thanks to Tim Cook that steay and mostly has manufacturing mind. The good news for CRUS is that the trend will continue and companies like CRUS will reach new highs not because of Apple at this time but because Apple has given it the original start and now CRUS can expand to different areas and deal with different customers. Crus rev from other customs other than Apple is on the rise and in future CRUS will be diversified with different customers and prodducts.
This is AAPL that has to sell to Chinese. After all, a few more iPhones sold will compensate for lower prices.