Biosource International Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biosource International

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joe Howard who wrote ()	3/9/1998 10:21:00 AM
From: ithasnospaces	Read Replies (1) of 696

This was in the Lone Star Investor Update put out last Friday: To play this sector we have selected for the Model Portfolio a company that provides equipment and testing supplies to the biotech industry - Biosource International (BIOI). As a supplier to the industry BIOI is a less risky play than companies developing biotech drugs - yet should share in the growth. Based on the consensus earnings estimates for the fiscal year ending December 1998, BIOI's forward price-earnings ratio is 11.8. With a consensus estimated five year earnings growth rate of 30.0% annually, the estimated growth rate/forward price-earnings ratio is an excellent 2.5. BIOI has a price-to-book ratio of 1.8 - less than the industry average of 3.6 and the S&P 500 average of 5.5. The trailing price-earnings ratio is 16.0. Debt-to-equity ratio is 0.05 - which reduces the financial risk. Market capitalization of BIOI is around $50 million - a microcap. The March 9, 1998, issue Forbes mentions BIOI, noting that: "Biotechnology companies are rarely considered value plays. Most lose money; some aren't even close to generating sales. The eight below are exceptions. All have products on the market and have shown profits in the last 12 months. According to IBES consensus estimates, all eight will make money this year, as well." Of the eight companies mentioned BIOI had the lowest price/earnings ratio. On a recent earnings conference call (3/5/98) management stated they will continue an aggressive stock buyback program, and cited the Forbes article and other factors noting "you can't reach a conclusion other than the company is 'grossly undervalued'" at $6 a share. BIOI management stated that they felt comfortable with consensus earnings estimates of $0.47 for fiscal year 1998. Operating income in fiscal year 1997 was up 30% from year earlier levels, although the bottom line did not increase to that degree due to tax credits used in fiscal year 1996.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next