SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Biotech / Medical : TECHNE (Tech): "selling picks to gold miners"
TECH 77.31+1.2%Jul 12 4:00 PM EDT

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Shane M who wrote (23)4/1/1999 5:36:00 PM
From: dr.john  Read Replies (1) of 46
 
Shane,

Tech is expected to earn about 0,78-o,8 USD/share in FY 99 and about 1,o in FY2000. However, if we exclude the extraordinary one-time items related to goodwill amortization this year, Techne's operating results were extremely strong, actually stronger than in the past: For the 6 months ended Dec 98 they reported net income of 7,1 mill ('97: 6,3 mill) including the extraordinary item of 4,7 mill in 98; Let's add 3 millions of these 4,7 to the bottom line and the "real" net earnings might have been somewhere at 10 million, i.e a surge of over 60% ; there are 5% more shares outstanding, but it still comes down to a EPS of 60% higher than in 97. Let's make it 50%. This is a higher growth rate than in the past, and for the reasons outlined in our older postings I think it will apply for the remainder of this year and, likely, for the next year as well. Which translates into a "corrected" EPS of about 1,15 for FY,99 and of 1,5 in FY2000 (if you assume a growth rate of 30% only), or of 1,7 (if you assume a growth rate of 50%). Lets take the lower number (i.e 30% growth for 2000, apply a P/E of 30 and you have a share price of 45. Of course, the target price would be much higher, if you take the higher numbers, or award a higher P/E (which Techne deserves: industry leader, superb past history, excellent fundamentals, excellent balance sheet…). Well these are just my thoughts.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext