| Stock (Symbol) | Stock Price | |
Catamaran (CTRX) |
$62 |
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| Data is as of | Expected to Report | Sector |
March 18, 2013 |
April 29 |
Healthcare |
| Sharek’s Take | ||
 Catamaran (CTRX) is going through an explosive growth phase as profit growth should be at least 50% four straight quarters. Catalyst Health Solutions (CHSI) and SXC Health Solutions (SXCI) were merged to create Catamaran and both stocks popped after the news. The sudden rush took the P/E to 44 in 2012 Q3. Now CTRX has a P/E of 28, and the stock is a good deal. This is a good time to buy CTRX, I think investors will be rewarded over the next two years. |
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| One-Year Chart | ||
 Profit growth already started to accelerate last quarter, and estimates of 58% and 76% look solid the next two quarters. This stock had a P/E in the 30s and 40s last year, the currrent P/E of 28 is nice and juicy. Look at 2013 profits (right) compared to 2012 — 54% growth! |
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| Earnings Table | ||
 Last quarter, sales rose 139% because the two companies merged together. EPS growth was 63%.CTRX beat by 5 cents, but the stock fell after earnings because the company lowered 2013 guidance from $1.91 to $1.81-$1.88. These estimates show $1.84, which is above the $1.81 from last quarter. In my book estimates increased, and some analysts just got a little bullish in the middle of last quarter. Quarterly estimates look great, explosive growth should continue three more quarters. |
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| Fair Value | ||
 CTRX has upside to Fair Value of 25% for 2013 and 59% for 2014. |
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| Ten-Year Chart | ||
 This chart is really the history of SXCI. CHSI wasn’t as fast of a grower, and maybe that’s good for us that SXCI has acquired CHSI. This is a stock you want to hang onto, this stock is on a steep trend higher. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
7 of 14 |
I love CTRX for the Growth Portfolio. Even though growth looks great for the next three months, I just don’t feel CTRX is timely enough for the Aggressive Growth Portfolio. CTRX is ranked 7 of 14 in the Growth Portfolio Power Rankings. I will consider it for Aggressive Growth Portfolio, but really want something to push me over the edge and make me buy it for this portfolio. |
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Aggressive Growth Portfolio
N/A |
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