Our first recommendation today sources, markets, sells, and distributes pharmaceutical intermediates and active ingredients, finished dosage form generics, nutraceutical products, agricultural protection products, and specialty chemicals. Analysts are estimating double-digit gains for the company this year. It beat earnings estimates by six cents in the last quarter. Our other two recommendations are for some judicious profit-taking in previous picks.
Aceto Corp. (ACET)
From Positive Patterns
Analyst estimates for Aceto Corp. ACET) are $1.49 this year 2016 and $1.71 for 2017—a good 14% gain (I am actually more optimistic than that). I would also mention that ACET does a lot of foreign business, so this small cap would benefit from a lower dollar in more sales for the chemical/mixes the company sells overseas.
The balance sheet is in excellent shape. ACET has a good credit rating and should see strong growing cash flow ahead. Below $25 the stock is cheap and should be a good 5-8 year trade ahead, if not longer.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, February 17, 2016