United-Guardian (UG) Has Fallen 22% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Palm Valley Capital Management’s top stock picks. Palm Valley Capital, an investment management firm, is bullish on United Guardian Inc (NASDAQ:UG) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on United Guardian Inc (NASDAQ:UG) stock. United Guardian Inc (NASDAQ:UG) manufactures personal care ingredients, pharmaceutical products, and specialty ingredients.

On July 1, 2019, Palm Valley Capital had released its Q2 2019 investor letter. The investment firm said that United Guardian Inc (NASDAQ:UG) was one of the ten equities that the fund held in Q2 2019. The stock has posted a return of -22.0% in the trailing one year period, underperforming fund’s benchmark the S&P Small Cap 600 Index which returned -2.2% in the same period. This suggests that the investment firm was wrong in its decision. On a year-to-date basis, United Guardian Inc (NASDAQ:UG) stock has fallen by 25.0%.

Palm Valley Capital fund posted a return of 0.7% from April 30, 2019 through June 30, 2019, outperforming fund’s benchmark the S&P Small Cap 600 Index which returned -1.9% in the same period. Let’s take a look at comments made by Palm Valley Capital about United Guardian Inc (NASDAQ:UG) in the Q2 2019 investor letter.

“United-Guardian supplies unique products to the personal care, pharmaceutical, medical, and industrial sectors. LUBRAJEL is a line of water-based moisturizing and lubricating gels, and United offers several proprietary formulations for different end markets from cosmetics to medical applications. RENACIDIN keeps catheters from becoming plugged up with calcium and can dissolve certain bladder and kidney stones. United has 40% operating margins even though the firm’s patents expired long ago. While the company has exposure to the Chinese market and could be affected by tariffs, United’s core products have existed for decades and the firm is a disciplined producer of free cash flow. United has a squeaky-clean balance sheet and currently pays a dividend yield exceeding 5%.”


In May, we published an article revealing Palm Valley Capital’s bullish investment thesis on United Guardian Inc (NASDAQ:UG) stock in its Q1 2020 investor letter. This suggests that the investment firm has been bullish for a long time on United Guardian Inc (NASDAQ:UG).

Our calculations showed that United Guardian Inc (NASDAQ:UG) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.