Bio-Reference Labs (BRLI) Message Board

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Biotech / Medical : Bio-Reference Labs (BRLI)

BRLI 4.700

-44.0%

Dec 22 4:00 PM EST

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To: Terence Winter who wrote (5)	11/18/1996 5:32:00 PM
From: David Paul	of 223

With today's close of 1 1/16 and a P/E of 8.9, it seems the downside risk is limited. BRLI is the largest independent clinical lab in its area, they're in a consolidating industry, and they continue to acquire other labs. Quarterly earnings history has been stable over the last two years, ranging between .05 - .07 (except for Jan96 loss of .06). Also, revenues continue to grow. If quarterly earnings continue to be stable, we're looking at trailing year earnings to be between .24 - .28 by quarter end Jan97: Actual: Estimated: 4/96 7/96 10/96 1/97 .07 .06 .06 .07 Revenue Growth, Year Ended (in millions): 10/93 10/94 10/95 $18.8 22.9 31.5 For the first 3 quarters of 96, revenues equaled $25.9 mill, which puts BRLI on track to hit $35 mill for year ended 10/96. If these estimates turn out to be accurate, then one could argue that BRLI is undervalued at its current price. A price closer to 4 seems reasonable if we assume yearly earnings of .26 and a multiple of 15. (.26 x 15 = 3.90) Anyone agree? disagree?

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