Date: Fri Jan 24, 2003 1:27 pm Subject: LCI ==> The $$$MR. MARKET$$$ cold weather special Drugs drugs drugs, God I love drugs. Everyone in this country is on drugs, and the cheaper the drugs the better. Got worries about the economy?....get cheaper drugs. That's why today I bought LCI at $20.00. I will sell it in 4 â 6 weeks at 23.22. Here is why I like Lannett Company: Lannett Company, Inc. develops, manufactures, packages, markets and distributes pharmaceutical products sold under generic chemical names. In addition, it contract manufactures and private labels pharmaceutical products for other companies. LCI's stock is up over 500% in the last 12 months. While its P/E is a little pricey for me at 30.91, it's not high when you look at the revenue growth that Lannett has been experiencing recently. They chart has an R^2 of 0.78 for 12 months and 0.80 for 6 months. IBD rates LCI an A+ with a 99 rating. Last quarter, LCI reported A 124% increase in Net Sales for the First Quarter of Fiscal 2003 compared to the First Quarter of Fiscal 2002, and a 30% increase in Net Sales for the First Quarter of Fiscal 2003 compared to the preceding quarter, the 4th Quarter of Fiscal 2002. A 178% increase in Net Income for the First Quarter of Fiscal 2003 compared to the First Quarter of Fiscal 2002, and a 28% increase in Net Income for the First Quarter of Fiscal 2003 compared to the preceding quarter, the 4th Quarter of Fiscal 2002. This kind of revenue growth means that LCI has tapped into a new vein of opportunity. Management supports the updated projections for 2003. All of this growth is occurring without much expansion of their fixed cost base. If LCI does only $0.19 a quarter (what it did last quarter) for the next 4 quarter, that would make its earnings $0.76/share which lowers its P/E to 26. However, it is likely that LCI's growth will continue through the year (small companies can grow rapidly). My guess is that they will come in at around at least $0.91/share. At today's P/E of 30, that will drive the stock price to $27.30, which is well exceeds my sell target. LCI's Return on Equity is 116%...wow! They have successfully reduced debt almost by half with their new cash flow. Return on Assets 53%...return on Invested Capital 55%. Talk about a high performance engine!! While this play is a bit riskier than what I am normally used to, it's kind of fun to jump on a rocket every now and then. I am HUGE!! Bring me your finest meats and cheeses.