Cumberland Pharmaceticals (CPIX) has shown itself to be a very attrative equity play based of criteria of my stock screeners. CPIX from a fundamental point of view is a tremendously under valued company, for the follwing reasons.
- P/E ratio of 1
- PEG ratio of .68
- Debt to capital ratio of 9.49% which is very low conisdering the sector this company is in.
CPIX is one of the most profitable companies in the Biotechnology & Drugs industry. Its gross margin is among the strongest of any peer while the operating and net margins are above the industry medians substantially. CPIX is has very little debt, with plenty of on hand equity to pay off all outstanding liabilities if needed. From a Technical Analysis perspective CPIX is very oversold on almost all indicators. - bollinger bands suggest CPIX is hugging the lower band, which is a indicator towards a uptrend in price movement to take place after this pull back is over.
- Moving averages suggest the stock is unvervalued and should be trading 9-15% higher than it is now.
- CCI indicates its massivly undervalued.
All stochastics point towards CPIX being oversold, as well as it having a breakout upwards here shortly. When all Technical & Fundamental indicators point towards any assest being oversold/undervalued its more often than not a price correction in the positive will occur. I would say based off of my analysis CPIX is due to increase in sahre value by 8% low side 15% high side within the next 3 weeks. I rate CPIX as a BUY. CPIX is a financially healthy bio-tech company with tremendous growth opportunity, coupled with due dillegence and its recent sell off, its at a discount and will most likely rise in value quite nicely in the comming weeks. |
