The "buy" recommendation below may explain BMRA's recent
strength:
Nasdaq SmallCaps Stock Symbol - BMRA Price: $2.13 Bid $2.25 Asked
Biomerica is an international biomedical company engaged in the development, manufacture and marketing of advanced medical diagnostic products, including tests for home and doctors' office use. The company's medical test kits fill special niche markets. The CHEAP Investor is issuing a Buy Recommendation on Biomerica as it has been profitable for the past four years. We believe there's good growth potential for the company's test kits as they can decrease medical costs. This good trading stock has only 3.9 million shares of common stock outstanding. Its public float (shares available to the public) is just 2.8 million. The stock is currently trading at its 52-week low of $2.13. It traded as high as $4.38 in the last 52 weeks.
The company's sales and earnings for the first quarter ended August 31 are shown below.
Buy Recommendation
First Quarter
1997 1996
Revenues $2,304,027 $2,273,387
Net Income 137,286 127,204
Net Income per Share .04 .04
Average Shares Outstanding 3.9 Million
Zackary Irani, CEO, commented, "We expect progress in the company's financial performance throughout this year. Our focused efforts in new products for the diagnostic market and expanded associations with major health care companies are expected to enhance the company's future sales and profits. At the same time, the implementation of improved manufacturing and marketing efforts at the Lancer subsidiary should now start to positively impact its performance in the next fiscal quarter."
Biomerica is an emerging-growth biotechnology firm that develops, manufactures and distributes medical diagnostic products. The company is focused on products for early detection and monitoring of human diseases and conditions before they become catastrophic and incurable. Its customers include medical universities, pharmaceutical companies, hospitals, clinics, commercial laboratories, physicians offices and consumers.
The test kits combine ultra-modern techniques and ingredients that simplify laboratory processes and increase both productivity and reliability. The company's EZ Detect(tm) Home test for detecting Stool Blood gives an early warning for possible colorectal cancer. The EZ Detect product is significantly easier to use than competing products as it requires no stool handling and no diet restrictions during testing. Its ulcer detection kit tests for H. pylori, a bacterium which is the main cause of gastritis and peptic ulcer. This test is considered the industry standard and Biomerica will soon introduce a 5-minute blood test for H. pylori for use in the physician's office.
The early heart attack blood test kit serves as an early marker to detect heart muscle damage during a heart attack episode. It is used by most major U.S. reference laboratories. The new thyroid kits detect and monitor the progress of thyroid disorders such as Hashimoto's and Graves' diseases. The test kit for diabetes allows the early detection of diabetes several years before symptoms appear. Such knowledge would allow early intervention to delay the onset of the disease. Biomerica offers Rapid Tests to detect ovulation, pregnancy and hidden blood in the urine.
Biomerica also owns 30% of Lancer Orthodontics (Nasdaq - LANZ) a leading manufacturer of orthodontic products. Lancer designs, manufactures and sells orthodontic products such as bands, brackets, buccal tubes, etc. Its subsidiary, Allergy Immuno Technologies Inc., which is 70% owned, focuses on the discovery and commercialization of novel biopharmaceutical drugs for the treatment of allergies. The company's research has led to new therapeutic approaches and inventions which are covered by four U.S. patents. Allergy Immuno Technologies' strategy is to utilize its proprietary technologies to create unique drugs for the treatment of allergies, especially those that can be taken orally avoiding the present injection therapy which is tedious, expensive, lengthy and unpredictable.
We think Biomerica has the potential to move at least 50 to 100% over the next year. The stock can be followed daily in most major newspapers in the Nasdaq SmallCaps column. For more information contact: Biomerica, Inc., 1533 Monrovia Avenue, Newport Beach, California 92663 or call (714) 645-2111 or fax (714) 722-6674.
The CHEAP Investor December, 1997
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The CHEAP Investor is published monthly by Mathews and Associates, Inc., 2549 West Golf Road, Suite 350 Hoffman Estates, IL 60194. We advise all readers to recognize that they should not assume that all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this issue. The information presented in this issue has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Mathews and Associates, Inc., and its personnel may include securities mentioned in this issue. Mathews and Associates, Inc. is not a registered investment advisor and therefore cannot give individual investment advice.
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