I believe you have some inaccurate information about the company's
fundamentals:
#1: "...no analyst coverage"
According to Zack's, there is one analyst covering it, and he/she has
rated BIOC a Strong Buy. I believe the analyst might have started two
quarters ago; from what I can see, in Dec '96, they missed estimates
by $0.02, and in Mar '97, they exceeded estimates by $0.01.
Also, here is their earnings stream, both historical and projected:
1995 1996 1997 1998
Mar -$0.69 -0.99 -0.41 -0.16E
Jun -$0.69 -0.80 -0.30E -0.12E
Sep -$0.63 -0.60 -0.18E -0.07E
Dec -$0.84 -0.49 -0.16E -0.00E
----------------------------------------------
-- 0% 66% 73% Yr.to Yr.
It looks like the situation turned around somewhere around September
of 1996.
#2) "Their balance sheet is weak..."
Some balance sheet items that are of interest:
Cash per share: $0.58
Current Ratio : 4.40
Debt/Equity : 0.03
With no earnings, of course, earnings based ratios are useless. But
PSR's have improved remarkably over time, moving down from a peak of
78.7 PSR to about 10.5. Revenues have been increasing, and the recent
product approvals can only improve this looking ahead. By the way,
with this having $0.58 cash per share, it would be very unusual if
this dipped below its cash holdings. I would think that this is the
floor, rather than 0.
I hope some of this information helps out any current or potential
investors.
Regards,
Rainier Trinidad |
