BINX: Incredible Product Message Board

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Biotech / Medical : BINX: Incredible Product

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To: Howard who wrote (38)	7/22/1997 9:36:00 PM
From: CalculatedRisk	of 103

Howard, in my earlier post (#4) I tried to describe the thinking of the analysts during the IPO process. Even though BINX beat the street by a penny, they are being valued as a growth stock, and for good reasons! The Company was (almost) guaranteed to make their numbers this quarter and next. But how will this translate into earnings for next year? My analysis shows they will fall short - and the analysts will perform the same calculations (but with better information!). Here are my observations: 1) Growth is slowing, both in percentage terms (quarter to quarter) and in real terms. BINX may be a $30+ million company next year, but with a market capitalization of about $182 million, this may not be enough. (19 3/4 * 9232 shares) Revenues for the last four quarters were: $1.16M, $2.41M, $3.22M, and $3.93M. 2) Gross margins declined from 75% to about 72% in the quarter (10-Q will disclose). Still very good - but the trend is wrong. Sorry, if I'm a little negative. But I know how the analysts think. I doubt there is much downside in the stock price ($12 to $14) and we may even see a run-up. But this is definitely not the news I was looking for from the long side. Regards, Bill

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