The Misfits: Simulations Plus (SLP)
Simulation Plus's success doesn't fit the profile of other Misfit stocks, but it could be a huge winner from a major FDA decision
One thing I will never be accused of with this newsletter is writing about newsworthy topics. A decent portion of the companies covered here probably want to stay out of the spotlight (if they are in the news, then something went spectacularly wrong).
Like the broken clock, even newsletters that do not attempt to be newsworthy will write about something in the headlines.
This is one of those weeks.
A company that’s been on my radar for several months is Simulations Plus (NASDAQ: SLP). It is one of the small, niche sausage-makers in the healthcare industry. No one would accuse it of being a “winning stock” over the past five years. Ever since going public, however it has delivered impressive results for its long-term shareholders (even if those returns were amplified by speculative buying).
This company was on the back burner for a while because 1) it’s a complicated topic, and 2) the business was somewhat dependent on changes in how pharmaceutical companies develop and test new drugs.
Well, that change just got announced (we think) and it could have a profound impact on Simulations Plus.
Let’s dig in.
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