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Biotech / Medical : Biosource International -- Ignore unavailable to you. Want to Upgrade?

To: Joe Dancy who wrote (351)	12/8/1997 1:19:00 AM
From: milton	Respond to of 696

Joe Dancy: I like it! It seems that bioi and other biotechs are Rodney Dangerfields-- they don't get no respect. With these stocks trading at bargain multiples, forward and trailing, it's only a matter of when we cash our chips. I think the stocks will have to be held for the long term to give us the big returns.

To: Joe Dancy who wrote (351)	12/10/1997 10:39:00 AM
From: Bob Richmann	Read Replies (2) \| Respond to of 696

The problem BIOI has is the recent lack of growth. The last 8 quarters they have earned .06,.09,.09,.10,.09,.10,.09, and .10 dollars/share respectively. Their actual growth rate has been virtually non-existent for a year. Each quarter the analysts expect them to do better than the last but BIOI hasn't been able to put up the numbers. They have increased overall revenues & earnings but only enough to match the dilution of the stock. I think the European acquisition has set them back a good deal, and they were blind-sided by an acquisition that was supposed to be immediately additive to revs & earnings. Give the recent whiffs by the analyst on BIOI, I wouldn't put to much emphasis on their estimates and ratings. That been said, from a fundamental standpoint if EPS start coming in like they're supposed to, BIOI is a steal. The current ratio (8.2), book value ($3.47), cash/share ($1.61), and P/E of 17ish are all very compelling. Once they start showing that they've got their house in order and start improving earnings, they should start doing pretty well. Until then I think they're dead money. I would guess their recent weakness, is year-end loss selling and probably a fair amount of people giving up on them, since they haven't been a very good investment if you've been long since Jan. 96. Sorry to be the pessimist here, good luck to all & we'll see what their next earnings bring.