DD, In order to address your questions on BTGC, let's do a comparative analyses. Due to time constraints, I looked at just some of the important ratios. This study is just meant as a preliminary look at how BGTC compares to its peers and a brief look at how the sector compares to the market.
For this study, I selected other Biotech stocks with as close a market cap to BTGC as I could find. I then compared book value, total shares, float, short ratio and growth rates. A more complete and thorough study would also include burn rate, product pipeline, price to sales, cash to debt ratios and other data.
Before the comparisons, let's look at the TA for the sector. I thought that the Biotech chart looks bullish and quite similar to the S & P's chart. The comparison is important, because the biotechs seem to be following the current market trend.
Biotech chart
iqc.com.
S & P chart
iqc.com.
I asked Jim Strauss for his confirmation on the bullishness of the biotech sector chart. His response:
"You could interpret the chart as a cup or a rising double bottom... The right bottom is higher than the left bottom... Usually bullish..."
Message 6239915
The stocks used for the comparison:
quote.yahoo.com
Of the stocks selected for comparison, only PERC, TECH PERXL SERO and BTGC are profitable companies.
Stock.........Total Shares/ % of.....Short to ..........1yr/5yr ...........Price/
..................total in float................cover ratio.......growth rate.....Book
BTGC .......48/85% .....................9 .....................29/45 ............4
PERC .......11/45% .....................6 ..................177/33 .............7
CORR.......24/67%......................3...................NA/25...............3
IMRN........23/70%......................7...................NA/20...............9
GENXY.....22/35%.....................1....................NA/NA..............NA
AVIR.........16/65%.....................6....................NA/NA..............8
GLFD........19/58%.....................5....................NA/NA..............2
TECH........20/51%....................4....................NA/NA..............6
SANG.......16/82%....................8.....................NA/NA..............4
LGND.......32/82%....................6.....................NA/20...............31
TKTX.......19/38%....................3......................NA.NA..............3
PDLI........18/49%....................3......................NA/20...............3
SERO......24/69%....................1......................22/28................5
PRXL......24/92%....................5......................32/36................3
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*Total Shares/Float
One concern about BGTC that Jose raised in an earlier post is the amount of shares. The comparison confirms his concern and also
demonstrates the low insider ownership, also a concern.
*Short to Cover Ratio
BGTC had the highest short ratio of the stocks compared. One reason might be the pending decision by Israel on BGTC's hepatitis
B. The shorts are sure to cover when the decision is known.
*Growth Rates
Look at PERC's growth rate for next year !!!! Comparing the growth rates of these stocks is not very meaningful without further information.
*Price/Book
BGTC is selling at the lower end of the range. |
