bio-reference lab brli andrew tiffany. company overview 3 rd largest full service lab in the u.s....

BIO-REFERENCE LAB BRLI

Andrew Tiffany

Company Overview

• 3rd largest full service lab in the U.S.• Largest independent regional lab in the northeastern market.

• National Oncology Lab• Primarily a clinical testing lab

• Esoteric testing• Molecular Diagnostics• Anatomical Pathology

Current Holding

• Purchase Price: $13.73• Current Price: $21.70• Shares Purchased: 100• Current Shares: 150• Sold 25 shares (10/27/09): $34.11• Gain: 58.05%• Investment Gain: $1882• Fair Value Estimate: $25.30

Key Stats

• P/E: 24.4• Rev Growth (3yr Avg): 23.4• EPS Growth (3yr Avg): 22.7• Net Profit Margin: 5.8• ROE: 19.2• Debt/Equity: .1

Compared to Industry

BRLI

• P/E: 24.4• P/B: 4.2• Rev Growth: 23.4• Operating Margin: 10.7%• Net Profit Margin: 5.8%• ROE: 19.2• Debt/Equity: .1

Industry

• P/E: 31.5• P/B: 3.0• Rev Growth: 11.1• Operating Margin: 12.5%• Net Profit Margin: .1%• ROE: .1• Debt/Equity: 1.8

Performance 1 Year

Performance 3 Month

Current Events

• 3Q profits rose 24%• 3Q revenue rose 25%• 3Q EPS: $0.29 (Expectations: $0.28)• Number of patients rose 17% • Revenue per patient rose 7%• Listed as one of 14 Stocks which are heavily shorted.

Analysts Estimates/Recommendations

• EPS: Current Year: .95

Next Year: 1.14• Revenue: Current Year: 454.85 Mil

Next Year: 524.65 Mil

Number of Analysts: 12

Strong Buy: 1

Buy: 7

Hold: 4

Recommendation

• Since this stock has a lot of stocks being shorted and although this company has strong financials and has shown growth and will continue to grow. My recommendation is to sell this stock. Since they have reached their max high and since we have seen tremendous return on this stock I believe it is time to sell.