SwingTrade Member Forum

[MikeDDKing]

BIOYF / RX.V is a rapidly growing marketer of pharmaceuticals in Canada that I think will be a monster like SPIN. They also have a nice insecticide business. Here are some reasons I like them:

1. Last quarter they made $0.025/share ignoring one-time items ($0.019 before one-time items). They last traded at $0.55 so they are cheap based upon those earnings. The insecticide business has some seasonality but I'm expecting Q4 to be similar to Q3 due to the growth in the pharmaceutical division.

2. The pharmaceutical business has had massive growth over the past two years. Here is the sales history for the pharmaceutical sales division:

Q3'11 $605K
Q2'11 $465K
Q1'11 $323K
Q4'10 $248K
Q3'10 $192K
Q2'10 $155K
Q1'10 $81K

3. Margins are very high at 78.6% for the last quarter. That means that additional revenue drops rapidly to the bottom line.

4. The pharmaceutical business has been growing rapidly because of the product FeraMAX which is for iron deficiency. It doesn't have the constipation side effect of other drugs which is a big benefit. It is continuing to gain new interest:
http://www.babycenter.ca/thread/26739/low-iron-anyone

5. They have a new topical anesthetic coming out in 2012 which should add to the growth in the pharmaceutical business.
http://finance.yahoo.com/news/BioSyent-Pharma-Receives-ccn-265549856.html?x=0&.v=1

6. The CFO has a history of purchasing lots of shares. He recently. His most recent purchase was at $0.485. In addition to the purchase shown in the link below, he also purchased 167,000 shares from 03/15/11-07/22/11 in the $0.107-$0.160 range
http://canadianinsider.com/node/7?menu_tickersearch=rx.v

7. They have a healthy balance sheet with no debt. Also, they have good cashflow as their operating cashflow exceeds earnings.

Disclosure: I've been accumulating this stock since August of last year and have a very large position.