| Stock (Symbol) | Stock Price | |
Catamaran (CTRX) |
$51 |
|
| Data is as of | Expected to Report | Sector |
September 10, 2013 |
Oct 28 – Nov 1 |
Healthcare |
| Sharek’s Take | ||
 Catamaran (CTRX) is digesting its gains made in 2012. This is a year of basing, when the stock catches its breath and gears up for the next move higher. 2014 should again be a banner year for this stock — but there is risk that customers take their drug plans in another direction. Just last week, Walgreen’s — a Catamaran customer — partnered up with Aon insurance to offer a different option for Walgreen’s employees. Earlier this year there was another issue with one of CTRX’s customers where the customer could have left the program. Still, CTRX has a solid record of exciting growth in sales and earnings, and will continue to acquire companies as it did in the past. If the industry doesn’t make a drastic shift, CTRX has the ability to grow profits 25% to 30% per year. |
||
| One-Year Chart | ||
 This stock’s been basing this year. Take a look at CTRX a year ago. Stock went from like $55 to $95 (it’s split since). The good thing is the P/E’s gone from 44 to 29 since then. Next quarter when I do a P/E on 2014 eps, CTRX might have a P/E around 22. |
||
| Earnings Table | ||
 Sales jumped 101% last quarter mostly because of the Catalyst merger. Profit growth was 96%.CTRX beat by 5 cents.Annual Profit Estimates for 2013 stayed around the same, 2014 & 2015 increased a bit. Quarterly estimates show solid growth ahead, but the rapid growth will slow as comparisons get tougher. |
||
| Fair Value | ||
 Notice how this stock usually has a P/E of 35. I think that will happen again as long as there is not a big shift in the industry. CTRX has been gobbling up other PBMs for years, and will continue to do so to grow. |
||
| Ten-Year Chart | ||
 Most of this ten-year chart the history of SXCI, before the merger with CHSI. This is some serious stock growth — and profit growth. Stick with this stock, see what happens. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
15 of 25 |
Catamaran is digesting its gains from 2012 and will be ready to make another move higher come 2014. I can’t worry about industry concerns — read the article I linked to above and see if you can make sense of it. Stick with this stock, see what happens CTRX is ranked 15th in the 25 stock Growth Portfolio Power Rankings. This stock isn’t in the Aggressive Growth Portfolio right now, but I may put it here later this year. |
|
Aggressive Growth Portfolio
N/A |
||
