Thursday, July 19, 2007

United-Guardian Inc.

United-Guardian Inc. is an AMEX listed security that has been trading in a range between $7.30 and $14.87 over the past year. With 4,942,540 shares outstanding, a recent price of $13.50 gives a total market capitalization of $72,074,097. While there are certainly larger companies, United-Guardian Inc. has definitely earned its place in the pack. Last year, United-Guardian Inc. created $0.66 in earnings for every share outstanding.

United-Guardian Inc. is currently priced by the market at 22.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, United-Guardian Inc. could be an interesting value proposition.

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