NEOG vs. IDXX & HKSA

All three are in similar lines of business with very similar P/E ratios.

http://softwaretimes.com/pics/neog-idxx-hska.gif

Neogen Corp. (NEOG) is currently my second largest position and my best performing one. I bought a initial position on January 13, 2016 at $53.41. When it looked like it had bottomed out on May 10, 2016 I doubled up at $49.51 which turned out to be a great buy point as you can see from the two year chart

http://softwaretimes.com/pics/neog-03-25-2017.gif

As you can also see this is a very volatile stock making it great for selling covered calls. One quarter on my NEOG profit comes from option trading and three quarters from stock price appreciation.

Another stock with similar characteristic is Balchem Corp. (BCPC) in which I have no position but it is on my fast growth list. There are a few of these less followed stocks that give the high tech darlings a run for their money and more with a lot less nail biting:

BCPC 30: http://invest.kleinnet.com/bmw1/stats30/BCPC.html

Denny Schlesinger

5 Likes

Thanks Denny,
You seem to always have valuable comments. I’ve obviously go more research to do.

So far, IDXX had done well for me. Now I’m second guessing myself, which is indicative of the fact that I did not research it very well in the first place. Maybe I just got lucky. As I noted before, I think marketing presence in Asia is an important ingredient to future growth in this business, but it doesn’t take genius to figure that out. Othan sufficient capital the only moat is first mover and brand recognition (all other things being more or less equal).

I’ve made pretty fair gains in a short period with IDXX, maybe I’d be better served by cashing it and redeploying. I’m going to take a harder look at this over the next week or two.

I’m not implying that people should redeploy. That all the players are doing great means that it’s the right sector at the right time. The reason I’m long NEOG is that it’s the stock that my research found, not that I studied all three candidates and liked NEOG best. It does seem that IDXX & HKSA have a bit more “animal spirits” backing them just now but that is not a reason to change horses in midstream.

Denny Schlesinger

Love the puns and the mixed metaphors!
Ant