I just starting to do some DD on this one after getting the following info...Looks promising !
Biomerica, Inc.
Ticker: BMRA
Exchange: NASDAQ
Current Price: 4
Bid-Ask: 3-7/8 x 4
52W High: 9.88
52W Low: 1.88
Shares Outstanding: 3.52 Mil
Float: 2.80 Mil
P/E ratio 26.85 / Industry: 27.22
Book Value: $0.63
Price to Book: 5.78 / Industry 5.21
EPS: $0.14
Core Business:
Biomerica develops, manufactures, and markets medical diagnostic
kits and various orthodontic products. Biomerica also performs specialized
diagnostic testing services.
Biomerica, Inc. QUARTERLY SUMMARY
REVENUE 1994 1995 1996 1997
1st Qtr AUG 2,026 2,190 2,329 2,273
2nd Qtr NOV 2,081 2,440 2,273 2,280
3rd Qtr FEB 1,944 2,310 2,066
4th Qtr MAY 2,253 2,222 2,813
EPS
1st Qtr AUG -0.025 0.000 0.020 0.040
2nd Qtr NOV -0.010 0.010 0.030 0.030
3rd Qtr FEB -0.020 0.010 0.020
4th Qtr MAY 0.030 0.010 0.050
PRIMARY MARKET MAKERS: WDCO SHWD NAWE WEDB HRZG TSCO MASH FAHN SELZ
OFFICERS: Joseph H. Irani, President./ CEO / Treas.
Janet Moore, Secy.
Biomerica, Inc.
1533 Monrovia Avenue
Newport Beach, CA 92663
PHONE: (714) 645-2111
FAX: (714) 722-6674
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Analyst Review, by Jeff DeFrancisco
*****************************************************************************
Biomerica a company which primarily sells diagnostic testing
systems. A majority of their core income is derived from the sales of these
products. And although sales aren't astronomical to date, the company
has still maintained profability and EPS of .14. Ironically enough, those
numbers are larger than many other biotech companies in the same sector.
My primary focus is on their release of new products which, in turn,
draws a pathway for a dramatic increase in revenues and stock price. * On
June 12, 1996, the company reported publicly that they plan to release
a tumor diagnostic testing system on the commercial level. The stock
opened that day at 3 5/8 and closed at 9 3/4! The actual product
is slated for FDA approval within 6 months. When speaking with the company,
they don't plan on having too many hurdles to jump due to the fact that
this product has already been FDA approved for laboratory use. This one
alone, should increase revenues immensely.
Aside from that above, they have several other products in the
pipeline for FDA approval within an estimated 8 months. The following
outlines upcomng FDA approvals:
Ulcer Detection Kit Within 2 months
Yeast Infection Detection Kit Within 5 1/2 months
Tumor Diagnostic Kit Within 6 months
Diabetes Detection Kit Within 8 months
Oral Allergy Therapy Estimated 2 Years
The Diabetes Detection kit is a product which has already been FDA
approved for clinical labs. This detection kit illustrates symptions
in individuals up to 20 years prior to obtaining diabetes. The obvious
benefit, as explained to me, is that one has the possilibity to prevent
it before it actually happens. Biomerica is looking for FDA approval
for commerical distribution within 8 months. This product has HUGE
revenue potential. The tumor diagnostic kit, which received a phenominal
response from the market on 6/12/96 speaks for itself.
THE BOTTOM LINE:
Biomerica is a NASDAQ stock with positive earnings and huge
growth potential. Their implementation of new diagnostic tests kits between
now and the next 8 months should get a extremely positive response from the
market. Aside from all the upcoming publicity, earnings should have a
significant increase over the next year.
***************************************************************************
The above was the original write-up. In preparation for this 'pick', Jeff
reports the following updates:
Heres the information I received directly from an insider at the company...
Last years forecasted unannounced earnings were .08, and they earned .12.
1997 internal (unannounced) forecasted earnings are between .18 - .20,
although they are expecting .22 - .24
The last quarter they earned .03, which was flat from the previous
comparable quarter. They had an internal inefficiency with production which
they are supposedly correcting, which accounted for the flat earnings.
Nothing specific was mentioned, but that was the main reason. Their sales
have been going well and with the incorporation of new products this year,
they are expecting a pretty dramatic increase in revenues as they are being
disbursed.
Their tumor detection kit, when mentioned on 6/12/96 that it was going to
be sold commercially drove the stock from 3 5/8 to close the day at 9 3/4.
This one product, when released for sale, should have a substantial impact
on the price even before the product is being sold.
I like the company primarily due to their profability, new and upcoming
products & projects (they actually do diagnostic work as well), their small
float, and forecasted earnings.
>>>> Anything to add? Andrew |
