Galen Holdings plc, the female pharma specialist, will post full year earnings on Tuesday.

Look for eps ~45-50pence putting the stock on an undemanding p/e of ~15. Sector average is 21, which may allow room for Galen to be re-rated.

Did anybody else bag todays gain on Galen.

EPS 50p , a p/e of 20 and price of 10plus should follow. Anyone joining me?

Have 3k on CFD, fingers crossed. Bot them end Oct just prior to the dip - D'oh!! So am breakeven for now. I get EPS 51 @ PE 15 = 765, 10 would do me fine. :-)

Graham,

Sector average p/e is 21. My 10 estimate is based on the 51p figure you quote. If you get back to old fashioned value measures like p/e ratios and PEG factors, Galen is dirt cheap at the moment.

Good luck.

Today:-

-7.50/.90 per cent
I cannot understand it as Nov 11 Results appear - to me - to be exceptionally
good and they seem to be : realistically : very positive about the future

Perhaps it is just profit taking.What do you think ?

arjen,

the one factor holding down the value of this excellent growth company, is the cancer fears surrounding HRT.

If you look at Galens results and the breakdown of its drug pipeline you will find that HRT represents only a portion of its earnings.

Galen has consistently grown earnings since flotation in 1997. Its workforce is predominantly drawn from top Universities, many Post-graduates. Its management team is exceptional as are its prospects.

This is an investors stock. Look at the chart. DYOR and good luck. I dont think you will be disappointed. Investment houses are already upgrading the stock and I would be surprised if it does not appear in next weeks Shares Mag as a buy.

TSQ

Galen continues to power towards my 10 price target after another outstanding set of results.

I would urge serious investors on this board, who perhaps require a more solid growth stock to balance penny share risks in their portfolios to look at this company.

If you look back at the earnings growth record since flotation in 1997, you will find it to be hard to beat anywhere on the FTSE 350.

Please refer to chart below.

Continuing excellent earnings growth momentum is supported by an increased pipeline and an increased USA presence.

These outstanding growth numbers also factor into account the present weak dollar. Any strengthening of the dollar adds more to Galens bottom line.

Recently high coupon debt bonds were paid down, leaving the company, cash rich, highly cash generative, low gearing and profit margins on sales approaching 80%.

As always DYOR, but at 8.60, a 25% return in the next quarter is likely from these levels.

Check out the website & recent results.http://www.galenplc.com

Broker has upgraded target price to 10. (Source Shares Mag, broker buys/sells)

Galen is beginning to upturn from an oversold position.

Recent purchase of shares by well respected director, has prompted me to top up my holding at these levels.

Given earnings momentum, price target of 10 is still easily achievable.

Hope so I'm long at present, looking to add more when the indicators turn.

kandrews250,

Always difficult buying against the crowd, but volume seems to be picking up and price moving higher.

Name change to Warner Chilcott will in due course increase USA investor base on the share register. This in turn will increase U.S. broker coverage and I expect Galens strong earnings growth record to attract large U.S. mutual fund buyers.

Product base is well diversified away from higher risk HRT products and IMHO market has oversold bigstyle here.

TSQ.

Beginning to correct from oversold position. 750pence first target level, and from a fundamental point of view current earnings easily support that level.

TSQ - Nice little rise today and with the dow looking ok we might get a bit more.On my charts the trouble is the 737 mark we will hit the 200 & 20 day Exp MA rssistance. This might appeal to some profit takers some will already have 30ish ppoints and the 40/50s will be tempted. So it might be alittle choppy. If that gets passed then agree 750 is on the cards. LOL

I think the robust earnings outlook is the key to driving price higher. Gal always tends to under-promise and over achieve.

I remain a buyer up to 750p.

Good luck ka250.

Companys' purchase of its own stock yesterday at 690pence signifies its belief that it is currently being undervalued by the market.

Stock is currently trading at p/e of 13. With growth in earnings of 20-30% plus for the next 3-5years, PEG ratio is very low.

IMHO a great long term buy.

TSQ.

A further purchase was made of its own stock by the company at 698pence, strengthening the view that this is a good buying opportunity.

Name change on Monday to Warner Chilcott plc will give more visibilty to American NASDAQ investors.

Topped up myself, as IMHO chart, fundamentals and management all point to a higher rating.

Has he epic changed as I can not find a quote now ?

For Galen Holdings now read, Warner Chilcott (WCRX)

Company continues to buy back its own shares under 700pence.