When I saw Saul’s write-up on SNCR I decided to plug the earnings numbers into the charting tool that I mentioned on this board yesterday. Indeed it made a pretty nice looking chart with increasing earnings each quarter. But then I brought up another company (ACT) I had charted earlier because I remembered that it was also a nice looking chart. Just looking at the charts for price vs. earnings ACT looks better to me.
Activis is a pharmaceutical company that has been growing by making acquisitions over the past few years. They recently outbid Valeant for Allergan.
Now, I’m in no way recommending ACT as a buy to anyone, but it has been good to me for the 2 years I’ve owned it (+230%). I should have bought more along the way but I never did. Anyway I thought I would post some numbers comparing it to SNCR, just because that’s what prompted me to look closer.
Date EPS TTM 02/05/2015 0.53 1.79 10/28/2014 0.46 1.67 07/29/2014 0.41 1.55 04/30/2014 0.39 1.45 02/05/2014 0.41 1.34 11/04/2013 0.34 1.22 07/30/2013 0.31 1.17 05/01/2013 0.28 1.12
Date EPS TTM 02/18/2015 3.91 14.01 11/05/2014 3.19 13.27 08/05/2014 3.42 12.17 04/30/2014 3.49 10.76 02/20/2014 3.17 9.26 10/29/2013 2.09 7.68 07/25/2013 2.01 6.94 05/02/2013 1.99 6.35
And here’s a link that should let you see a picture of both charts. The silver rectangles on the chart represent a PE range of 15 to 20 based on the trailing twelve months earnings at that time.
SNCR is more interesting to me now that Saul has written it up but I haven’t decided to buy any. This exercise does have me wondering if I should pick up more ACT. I probably won’t for now, but it does have me thinking.