Out late tonight and spent the day away from my computer....with the market up moderately today, I figured we'd find at least one stock that fits the bill and it looks like QLT Inc. (QLTI) works well!
I am familiar with this company which produces Visudyne, for photodynamic therapy which is used to treat the 'wet' form of age-related macular degeneration. I do not own any shares of this issue...nor does anyone in my family.
QLTI had a nice day today--closing at $15.39 up $1.59 or 11.52% on the day.
They reported their second quarter results today which was instrumental in driving the stock higher today. Sales were up 25% over 2002 for the quarter at $89.2 million. Earnings per share for the second quarter of 2003 was $.16 a 60% increase from the $.10 reported last year.
Morningstar shows no revenue reported in 1997 and 1998, then $17.9 million in 1999, $33.2 million in 2000, and $84 million in 2001. Extrapolating the current quarter we get about $360 million in sales in 2003.
Free cash flow which was -$38 million in 1999, and -$50 million in 2000 turned positive in 2001 at $19 million.
Assets and liabilities show QLTI flush with cash per Morningstar.com with $163.8 million in cash compared to $25.3 million in current liabilities and NO long-term liabilities. In addition QLTI has $86.2 million reported in other current assets.
Yahoo.com shows a market cap of $947.7 million with 68.7 million shares outstanding and 53.6 million shares that float. The p/e is a bit steep at 47.59 but not too unreasonable with the fast growth rate.
As of June 9, 2003, there were 2.39 million shares out short...representing 5.19 trading days. This is a positive effect on the stock price.
Overall, the numbers are nice and the balance sheet is clean but this still represents pretty much a one-product company with a product that merely ameliorates a dismal condition and usually does not provide a cure. I am not real enthusiastic about this issue, but if you keep to the 8% stops as we do on all of our issues, it may be worth some attention.
Thanks for stopping by the website! Be sure to drop me a line if you have any questions, comments, or as always appreciated words of encouragement.
Bob