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

To: Joe Dancy who wrote (384)	1/5/1998 12:39:00 PM
From: Steven Dopp	Read Replies (3) \| Respond to of 696

Well Joe, FWIW, my stock club took a look at BIOI. we did an SSG on it and thgouth it looked good. we bought some shares in November. Unfortunately, the stock dropped in december. Ah, but who can time the market anyways. I agree that the growth to P/E ratio is favorable. My club wanted some exposure to the biotech industry and agreed that a company like BIOI was a good way to participate. When we did our SSG, we assumed 15% annual growth in earnings per share and revenues (going forward). Based on historical trends, this should be achievable. Anyways, our SSG is predicting an annual average return of 27.8% for the next five years. It also says the stock is a "Buy" up to $9.70. We used as a potential future high p/e of 30 and a low p/e of 13.6. The historical p/e for BIOI has been all over the place, from a high of 37.9 to a low of -32.1. I don't know, maybe our projected low p/e is too high. we used 13.6 as this was the low p/e in 1996. We got an upside/downside ratio of 6.8.