Ever on the lookout for the next long-run market winners, investment adviser Andrew Lanyi thinks that the best bets now are young companies with growing "repeat-order" products or services. He believes he has discovered such a gem.
It is Homecare Management, a supplier of drugs and at-home treatments for people who undergo organ transplants or people afflicted with serious chronic ailments whose health needs aren't being directly served by the big companies in the business. Homecare's stock has risen from 5 in late September to 9 3/8 a share on Nov. 10. Lanyi, who heads Lanyi Research Div. of Ladenburg Thalmann, says the stock could hit 19 in a year.
Homecare is the only pure play for transplant-related therapies and services, notes Lanyi. Demand for Homecare's type of services is going strong, he adds, because of the increasing number of transplant patients.
Analysts figure that Homecare will earn 30 cents a share in the year ending Apr. 30, 1993, vs. 22 cents a year ago. They expect earnings to rise to 45 cents in fiscal 1994 and to 65 cents in fiscal 1995. Homecare Chairman, CEO, and President Clifford Hotte says the estimates are "within reach and reasonable." Right now, Homecare is serving about 70 of the nation's estimated 265 organ-transplant centers. The company, says Hotte, can double its business "without straining our resources" at its current facilities in the states of California, New York, Pennsylvania, and Texas.