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A few random thoughts, as long as I'm here (this is stuff you prolly already knew)...

Lannett produces generic drugs, and markets them under both their own name and other private labels.

Lannett is a well-established company in the Philadelphia area, but has recently undergone a rebirth of sorts, taking on new management and a new, more aggressive business plan.

The new management works for reasonable salaries (IMHO), and buys and owns stock.

They're a small cap. Last year, they moved from the OTC:BB to the AMEX.

Lannett scores very favorably under the Foolish-8 criteria, and Investor's Business Daily has recently written them up as a result of their very high relative strength score (although RS is a fickle indicator, IMHO)

Small float makes for big (potential) volatility.

Lannett no longer produces the controversial diet supplement ephedrine (sp?), associated with the death of Baltimore Orioles pitcher Steve Bechler earlier this year.

The population is aging while health care costs are rising. Both good for generic drug manufacturers, n'est-ce pas?

Generic phharmaceuticals is an extremely competitive industry.

Small caps are dicey -- they can soar quickly or flounder quickly.

We're still in a bear market.

I look forward to a Foolish discussion of this security!





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Hi, again, Lake (& others) -- I see all the factors you mentioned as positives, except the part about generics being an extremely competitive industry. (small float doesn't bother me b/c it goes hand in hand with the stock not being well known yet, and it's not a *super* small float; the bear market is obviously true, but may only mean this is a good time to buy, and actually, LCI has been bucking the bear -- a really good sign.)

One of my other stocks, Watson Pharmaceuticals (WPI) is a generic maker. They are much bigger than LCI, and they got that way by focusing on generics that are hard to make; few other generic manufacturers compete with Watson's lineup because it's a pain in the @#$ to try. Maybe LCI has a specialty like that, which is one of the things I hope to figure out. I will do some digging as I have time.

Hey, Zack -- bold call on AVR. Very interesting company. Way too small for me to jump in, but I am going to keep an eye on it.

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Lannett produces generic drugs, and markets them under both their own name and other private labels.

I am starting to like generic!


The population is aging while health care costs are rising. Both good for generic drug manufacturers, n'est-ce pas?

I feel the generic market has competition, but I also really feel the market is going to expand by multiples. Individuals, doctors, ins. companies are all going to start looking for generics.

I am not great at this research (looking to learn), but every thing I have seen on this company is solid.
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I've been looking at this one. Estimates anywhere to look at? Or are they too small for that?
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