August 30, 2010 | In: Services

Revisiting BIOS

20 days ago, I have written a post about BIOS on why I think it’s a bargain stock. At that time, the stock was at a mere $4.54, rebounding from a low of $4.13. The stock closed on Friday at $5.11, and there is a huge potential that it will close this week up 20%, at more than $6.

Here’s my reasoning:

- The market has realized that this is not a bad company after all, when their EPS is $1.01, and their P/E is just over 5, which makes Bioscrip the most undervalued profitable pharmaceutical company in the market.
- The M&A spree is expanding into pharmaceuticals, as Sanofi has just made a bid for Genzyme. I believe this move alone will have a considerable positive effect on BIOS.
- Bioscrip executives are willing to buy back BIOS to maintain the price.
- BIOS is trading very close to the book value.

Usually I wait for a retreat before buying a stock, but this stock has already retreated a lot late July and now is rebounding. Highly recommended.

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