Idexx takes a long, long view

Article Excerpt

IDEXX LABORATORIES INC. $83 (Nasdaq symbol IDXX; WSSF Rating: Extra risk) has unveiled a plan to spend $100 million over the next 20 years to expand its headquarters in Maine. That plan may require numerous adjustments as the years pass, but we think the company has an attractive long-term outlook. Idexx makes equipment that veterinarians use to detect diseases in domestic pets and livestock. It also makes veterinary drugs. It stands to gain from rising pet ownership levels, and fears of disease in domestic and wild animal populations, such as mad cow disease and avian flu. The stock has soared since we first recommended it at $28 in our May, 2002 issue. It now trades at 33.7 times its forecasted 2006 profit of $2.46 a share and 4.2 times its sales of $19.92 a share. This leaves it vulnerable if it reports even a temporary downturn in earnings. Idexx is a hold, but only for aggressive investors. investors…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.