Neogen (NEOG)
is one of the more remarkable med-tech companies out there, but I'll
bet it's all but unknown to a large swatch of the Seeking Alpha reading
audience. This relatively small ($1.4 billion market cap) med-tech has
grown its revenue by an average of 16% a year for the past 10 years,
with the stock price rising almost 900% over that same stretch of time,
and there could yet be ample room to the upside.
The problem is
that Neogen always looks expensive and I just cannot get comfortable
with the idea that the stock's multiples will always continue to defy
gravity. While the company's record of organic growth, solid
margins/ROIC, and accretive acquisitions would make this a very
dangerous stock to short, I'd nevertheless need to see a substantial
sell-off before wanting to buy it as anything more than a growth trade.
Please continue below:
Gravity's Only A Theory With Neogen
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