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Biotech / Medical : Biosource International
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To: geoffrey Wren who wrote (517)7/8/1998 10:10:00 AM
From: Joe Dancy  Read Replies (1) of 696
 
Good points Geoff. Commodity competition could limit the margins here - good question - but I have assumed that to some degree what they are selling is specialized enough that competition will be limited. Also, as a "full service" product supplier I would think there would be opportunities to cross sell products, and the overhead will be spread over more sales/products which gives BIOI some cost advantage.

The balance sheet and stock buyback is what makes me feel comforatble here - and the low price to book ratio - this dog may not fly but I think they will still be in business five years from now. Then again, with small caps you never know.

I also like the fact that the medical field to a certain extent will not overlap the semiconductor and Asia cycles - and things should be somewhat more stable here. With Asia, the GM strike, and other global worries I think the US economy will slow down to some extent, and BIOI is in a field that will not be impacted as directly from such a slowdown IMO.

Joe
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