Eli Lilly August 1, 1999. Eli Lilly's one year income growth has been 17%, with sales of $9,224.2 million and income of $2,287.6 million. The net profit margin has been 24.8% with the industry average at 16.3%. Investor's believe that the stock is either undervalued or overvalued compared to other stocks in its industrial group. With a multiple of 33.10, the stock should be priced at $85.00 a share by the end of 1999. A more realistic figure by the end of year 2000 should be about $100.00 a share. As of last Friday's close, the stock was at $65 11/16 per share. Eli Lilly is my top pick of the drug sector based on my expectation that the consistent high teen revenue and EPS growth will lead to robust growth earnings and multiple expansion. The shares have lagged under pressure due to concerns about Prozac competition. However, Lilly's excellent CNS, diabetes, cancer drugs, and drugs in the pipelines should easily offset any such major concerns. Excellent volume growth, direct to consumer advertising, and low managed care co-payments combined with modest growth, form solid industry fundamentals well beyond 2000! Eli Lilly makes Prozac, the world's best selling antidepressant. It also makes Gemzar (for pancreatic cancer), Humalog (injectable insulin) ReoPro (anti-clotting compound used on angioplasties), Evista (osteoporosis) and Zyprexa (schizophrenia treatment being tested for use in bipolar disorders and Alzheimer's). Other products include antibiotics, growth hormones, anti-ulcer agents, therapy medications, sedatives, vitamins, and feed for animal health products. Ticker symbol: LLY George

Resources Online Investing - Online Investing is a wonderful guide for using the Internet to find, research, and buy winning stocks. Jon D. Markman, managing editor at MSN MoneyCentral Investor, writes that the Internet makes it easy to build a highly profitable portfolio. Merck & Co. - Another recommended pharmaceutical company is analyzed by George.     Our editorial goal is to provide a forum for investment ideas. Our articles, columns, and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Kolias & Co of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.    Privacy Policy | © 1998-2002, Kolias & Co | Liability Disclaimer