Shorting Simulations Plus Is Silly

Simulations Plus (NASDAQ:SLP) is my favorite buy-it-and-close-your-eyes-for-a-decade company, as I explained last week. They make software that helps scientists develop new drugs. It’s at the intersection of biology and machine learning, the two fields most likely to revolutionize the world within my lifetime. And it’s a serious company. They’ve been growing for decade straight, both their software and consulting sales are increasing ~15% per year still, they’ve got a dominant product used by 19 out of the 20 drug companies and most of the world’s versions of the FDA’s, and their after-tax profit margins are ~25%. At 30x (clean) forward EPS it’s not cheap but with such potential on the upside, and the downside protected by fat margined recurring revenue, it’s a bet I’m excited to take. Yesterday StreetSweeper, which…


Link to Full Article: Shorting Simulations Plus Is Silly