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

To: Joe Dancy who wrote (478)	5/10/1998 1:47:00 PM
From: MikeM54321	Read Replies (2) \| Respond to of 696

>>Company said that new products already introduced should start to push revenues up 10-15% a quarter. New products in a hot area will also be introduced shortly that will help near the end of the year.<< Joe Dancy, This was a significant statement for management to make. Let's say it's the low end at 10% a quarter. This translates to an annualized increase (extending out 4 quarters) of 33%. Now if it's the high end, then 15% is a 52% annualized increase. With the stock selling at a current PE of 18, this does appear to be a pretty good bargain. The company has enough confidence that it has re-purchased 666,500 of it's own shares out of an authorized share repurchase program of 1,200,000 shares. There are only about 8 million shares outstanding, so this is fairly significant and will affect the fundamental numbers for the better. All insider sales for 1997 were buys. No planned insider sales this year. Then, looking at the fundamentals: debt/equity=.05, current ratio=8.6, quick ratio=4.1, etc...All very good numbers. BUT the stock has been virtually FLAT for about two years! What makes you think it is going to move now? Since I haven't been following it very long, I have no feel for management's honesty, accuracy, or credibility. Maybe I should re-word my question. Do you feel it's all just coming together(stock price appreciation), right now, because of all of the above? Or maybe I should simply ask, do you feel that management's statement was accurate regarding a whooping 10%-15% quarterly(!) revenue growth? Did you get an idea of what is going to create this substantial growth? Thanks, MikeM(From Florida)