It means that SRPT needs to replace the executive team if they ever hope to get a drug approved with the FDA.
This should propel much higher, into the $18-$20 range, once all the earnings news and progress is digested by the analysts.
SCMP beat consensus estimates of $0.18/share, coming in at $0.21/share and reaffirms guidance for next year of $0.55-$0.65/share (consensus is $0.60/share).
They beat revenue estimates of $36.91M comin in at $37.8M.
Investopedia article lays out quite a few arguments on why investors should not buy SRPT here, even though it looks cheap (there is a section of the article how cheap looks can be deceiving). They missed the biggest argument though against SRPT and that is that the management team simply isn't getting the job done with the FDA.
With ineffective management, no company is going to be successful. That has to get fixed first.
EPS consensus is $0.38/share (for 2014) *153 (growth rate year over year is 153%) nets a present valuation of $58.14/share and that is only if they meet the consensus number.
If they hit the high number of $0.40 then valuation rises to $61.32/share.
Even the low estimate of $0.36/share for the year yields a fair value of $55.19/share.
So no matter how I cut it, SCMP is a screaming buy.
64.81% owned by insiders
24.30% owned by institutions
16.20% shares sold short
SCMP is poised for a massive upside move.
Think about the market manipulators. They don't issue a BUY rating before they bought the stock, letting you drive up their share prices so they have to pay more for the shares they want.
They issue a "Neutral" rating on it, to try to get a sell off or at least prevent a run up in the share price, so they can buy at reduced levels. Then, once they have picked up 10 or 20 million shares, they upgrade it based on improved conditions or whatever excuse they choose to use.
They can't really put a "SELL" rating on it, because nothing is going to fundamentally change to make it better, since the company is already performing, and nobody would take them seriously. So they go with a "Neutral" rating so they can buy shares cheaper, then upgrade later on any nuance they choose, to make more money.
Yet ANOTHER miss by this management team that continues to demonstrate they need to be replaced. What will their excuse be when yet another delay comes in filing with the FDA?
Today's earnings miss is just the latest in a very long line of missteps that indicate this management team looked good on paper, but isn't cutting it. They simply are NOT performing. Sure they have good excuses, but other companies have FDA filings and FDA approvals. Excuses don't cut it any more.
No more free passes. Replace management!
Yep, I'm dumb, since July 2014 at $30.16/share. I'm stupid like that. Silly me, doubling my investment and all that nonsense.
As the quarterly numbers are fully recognized, the upgrades will start coming in. It was an excellent quarter and this management team continues to perform well.
For the fourth quarter 2014:
- Record net revenues of $21.0 million, an increase of 100% over fourth quarter 2013
- Record adjusted non-GAAP EBITDA of $12.8 million, an increase of 225% over fourth quarter 2013
- Adjusted non-GAAP diluted earnings per share of $1.94, which includes the positive impact of a $16.7 million deferred tax valuation allowance reversal
For the full year ended December 31, 2014:
- Record annual revenues of $56.0 million, an increase of 86% over 2013
- Record adjusted non-GAAP EBITDA of $27.3 million, an increase of 264% over 2013
- Adjusted non-GAAP diluted earnings per share of $2.96, which includes the positive impact of a $16.7 million deferred tax valuation allowance reversal
Good news on all fronts.
I probably should have bought a lot more of ANIP at $59.28 but hopefully will be good enough. If they beat the $0.58 EPS consensus then that will bode very well for share price and for the future.
It is a novel idea, a camera that records everything in your life. Could be a permanent addition to every police uniform that could cut out a lot of nasty cases, because you can finally see what's really going on during the arrest.
Similarly, parents could verify their kids are doing precisely what they said they'd be doing, which builds the trust etc., so a lot of good can be done with these wearable devices.
That said, they are supposed to have launched the Beta test, but I've not received my Beta unit yet - so I haven't been able to evaluate it against the GoPro or any other device.
Bottom line, it has a lot of potential, but right now, that's all it is - potential.