SA Pro Editors discuss our 2016 research report on Lannett Company and provide an update on its intrinsic value.
Read MoreLannett Still A Valeant Proxy?!
Since our research report in May 2016, Lannett Company (LCI) continues to trade as a proxy for the deeply troubled Valeant Pharmaceuticals (VRX). Their daily stock price correlation remains above 80%. Moreover, over the same time frame, LCI has an equally high correlation (~ 75%) with the healthcare sector ETF (XLV). This suggests to us that the intrinsic value upside in the LCI stock price could be realized once the industry overhang from Trump's drug price-control tweets abates.
Read MoreNew Research Presentations Available at www.lateralcap.com
Powerpoint summaries of our written research reports are not only a lot easier to digest, they are slowly being added to our website for free download.
Read MorePDLI value trap - adjusted EBITDA multiple
Adjusting the PDLI trailing EBITDA multiple for the equity research consensus earnings estimate, and assuming a 35% tax rate, the pro forma PDLI forward EBITDA suggests it is not, in any meaningful sense of the word, a "value" stock