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Biotech / Medical : Biotech for less than cash value

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To: Mike McFarland who wrote (251)12/9/2005 10:02:05 PM
From: Jibacoa  Read Replies (1) of 684
 
Mike, As you said, DPII certainly looks cheap.

Yahoo lists its cash/shr at $3.05 its Debt/Equt at 0.002and BV at $3.94 It also shows a positive CF of $6.88M & +FCF of $1.33M

finance.yahoo.com

IBD lists it at 0.57 of BV with a + CF of $0.41

One problem is that revenues have been down 16% on each of the last 3Qs and the loss for the 9 months is now $0.18/shr with an EL for 2005 of $0.35/shr. If this last item is correct, it means that the pending 4thQ should show a loss of $0.17/shr, which won't compare well with the last Q in 2004 when earnings were $0.05/shr on the black column. For 2006 the EL is still $0.29/shr.

Will see if the changes made on the BOD last month will make some positive changes.<g> (Riccardo Pigliucci resigned & Michael Venuti is now the interim CEO with Harry Hixson as Chairman.)

I will keep DPII on a watch list. It seems to show some suppport at the 2.25 level and resistance now at 2.45 It may have reached the lowest level for a while, but I am not anxious of buying any and would rather wait for it to go back above the $3 or even the $3.50 level

RAGL

Bernard
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