| Stock (Symbol) | Stock Price | |
Catamaran (CTRX) |
$48 |
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| Data is as of | Expected to Report | Sector |
November 11, 2013 |
Feb 24 – Feb 28 |
Healthcare |
| Sharek’s Take | ||
 Catamaran (CTRX) has been basing this year, and it really needed to. The stock went from $28 to $47 last year and had gotten ahead of itself. Now with CTRX at $48, the stock’s ready to make a big jump in 2014. CTRX has grown profit ten-fold since 2006 and has shown it can be a 30% grower (with acquisitions and new business). Catamaran’s P/E is only 20 and I feel it should be 30, there’s upside of greater than 50%. |
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| One-Year Chart | ||
 This is a good buying opportunity with the shares under $50. Profit growth was high the last four quarters because of merger savings. The P/E of 20 is good compared with the Est. Long Term Growth Rate of 27%. |
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| Earnings Table | ||
 Profits jumped 108% last quarter due to the Catalyst merger. Sales increased 13% year over year.CTRX beat the street by 4 cents, but investors weren’t that impressed. Annual Profit Estimates increased a bit. This Earnings Table is boring.Quarterly estimates look good for the next two quarters, but after that don’t look great. CTRX at 20 times earnings can live with 18% profit growth, but for the stock to really rise wer need to see 25% growth or better. |
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| Fair Value | ||
 There’s excellent upside in these shares. Prehaps I’m getting ahead of myself with the estimates P/E of 30, I may adjust it down to 25 next quarter. CTRX makes a lot of acquisitions, it could do so next year and that would help profits. |
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| Ten-Year Chart | ||
 I love this ten-year chart. Clearly the stock is on a dip here, it’s also hitting support levels. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
16 of 25 |
As I mentioned last quarter: Catamaran is digesting its gains from 2012 and will be ready to make another move higher come 2014. There’s solid upside for these shares, but no real catalyst to push it higher in the near-term. CTRX is ranked 16th of 25 stocks in the Growth Portfolio Power Rankings. This stock isn’t in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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