BUY: A Micro Cap Company Aiming To Improve The Health Of Cattle

4 Jul 2020

Here is an idea that I am going to pursue this coming week - feel free to join me.

Let me give you the profile of the company.

Name: ImmuCell Corporation

Sector, Industry, Country: Healthcare | Biotechnology | USA

Plain English Overview:
They create health products, in the form of pills & vaccines, to make for healthier cattle.
The goal is to reduce the use of antibiotics in the American food chain.

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I've divided the fundamentals into 6 parts. These six parts are based on research, and I think they are the most important criteria to consider when thinking about investing in a company, especially a small one.

Fundamentals

VALUE
-- P/B: 1.3

DILUTION
-- 7M shares

QUALITY
-- Debt/Equity < 0.3
-- Long-term debt/equity < 0.3

CASH
-- P/C: 5.3

OWNERSHIP
-- Insider: 28%
-- Institutional: 20%

GROWTH
--Quarterly revenue growth: 11%

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Now let's talk about technicals, briefly.

The stock is at the bottom of its range and is putting in a double bottom with a breakout ('W').

All in all, the stock seems like a pretty good idea to pursue - as long as you position-size (i.e don't risk more than 5%), I think it's not a bad idea. 📈