Bought RX.V
Revenue up 16% versus 2015.
2016 Fully Diluted EPS was $0.30 as compared to $0.26 in 2015.
As at December 31, 2016, the Company had cash, cash equivalents, and short term investments totalling $13,739,286 as compared to $9,715,476 as at December 31, 2015 - a 41% increase.
Cash and cash equivalents $13,056,086 vs $4,392,617 - 197% increase. However, this could be deceptive as it looks like cash grew due to sale of short term investments.
Shares outstanding is 14,401,087. Cash, cash equivalents, and short term investments totalling $13,739,286 almost equal to number of shares.
No debts.
Price yesterday closed at $7.35. When earnings was announced this morning, price went up to $8 or 8.84%. Closed at $7.47. Bought at $7.50 using limit order good till cancelled but was filled right away even though ask price was $7.6 to $7.75. It may be irrelevant but should have probably tried limit order at bid price. Volume was high today due to earnings release.
Did not really follow the 3 technical indicators as outlined in Rule 1 Investing which was probably a mistake.
The Company has incurred product dossier and filing costs of $362,884 (December 31, 2015 – $239,764) to date on eight products, two of which, Aguettant System® Atropine and Phenylephrine pre-filled syringes, have been approved and launched.
The filing costs incurred in respect of these products are being amortized on a straight-line basis over their estimated useful lives of 5 years based on marketability.
The other six products, with a combined carrying amount of $297,578, have not yet been launched to the market and as such, no amortization has yet been recorded.
New exclusive rights to use trademarks of two cardiovascular pharmaceutical products, royalty-free.
New license and supply agreement for exclusive Canadian rights for women's health pharmaceutical product.
The Company currently has four products in the growth stage (FeraMAX®150, Cathejell® Jelly 2%, FeraMax® Powder and RepaGyn®), four products in the launch stage (Cysview®, Proktis- M® and Aguettant System® Atropine and Phenylephrine), and four products in the regulatory stage subject to Health Canada approval (the two Cardiovascular Products, the Women’s Health Product, and Aguettant System® Product #3).
Legacy insecticide business grew 29%.
Receivables are a bit of a concern compared to 2015 where past due 31-60 days were $90,150 compared to $1,489 in 2015.
5 Key Management Personals earned $1,044,916 in salary and bonuses + $119,134 in share-based payments which is 6.5% of total revenue or 27% of Net Income After Tax (NIAT).
Share ownership as of Dec 2015
Rene Goehrum, CEO & President owns 16% of shares.
Alfred D'Souza, VP and CFO owns 11.3% of shares.
Management and board owns 4,517,461 or 31.36% of shares as of April 2016.
The good
Using Future P/E of 28.2 which is the historical P/E for this company and 15% target return. Intrinsic value/Sticker Price is $36.48. Margin of Safety (MOS) price is half so $18.24. It is selling well below MOS price.
Magic Formula
Return on Capital is 46.44%.
Earnings Yield is 5.55%
I'm not sure how to do the ranking so I skipped that.
Note: TSX considers the following for capitalization. However, Canada has a smaller market compared to the US so US and Canadian companies cannot be properly compared using market capitalization.
2016 Fully Diluted EPS was $0.30 as compared to $0.26 in 2015.
As at December 31, 2016, the Company had cash, cash equivalents, and short term investments totalling $13,739,286 as compared to $9,715,476 as at December 31, 2015 - a 41% increase.
Cash and cash equivalents $13,056,086 vs $4,392,617 - 197% increase. However, this could be deceptive as it looks like cash grew due to sale of short term investments.
Shares outstanding is 14,401,087. Cash, cash equivalents, and short term investments totalling $13,739,286 almost equal to number of shares.
No debts.
Price yesterday closed at $7.35. When earnings was announced this morning, price went up to $8 or 8.84%. Closed at $7.47. Bought at $7.50 using limit order good till cancelled but was filled right away even though ask price was $7.6 to $7.75. It may be irrelevant but should have probably tried limit order at bid price. Volume was high today due to earnings release.
Did not really follow the 3 technical indicators as outlined in Rule 1 Investing which was probably a mistake.
The Company has incurred product dossier and filing costs of $362,884 (December 31, 2015 – $239,764) to date on eight products, two of which, Aguettant System® Atropine and Phenylephrine pre-filled syringes, have been approved and launched.
The filing costs incurred in respect of these products are being amortized on a straight-line basis over their estimated useful lives of 5 years based on marketability.
The other six products, with a combined carrying amount of $297,578, have not yet been launched to the market and as such, no amortization has yet been recorded.
New exclusive rights to use trademarks of two cardiovascular pharmaceutical products, royalty-free.
New license and supply agreement for exclusive Canadian rights for women's health pharmaceutical product.
The Company currently has four products in the growth stage (FeraMAX®150, Cathejell® Jelly 2%, FeraMax® Powder and RepaGyn®), four products in the launch stage (Cysview®, Proktis- M® and Aguettant System® Atropine and Phenylephrine), and four products in the regulatory stage subject to Health Canada approval (the two Cardiovascular Products, the Women’s Health Product, and Aguettant System® Product #3).
Legacy insecticide business grew 29%.
Receivables are a bit of a concern compared to 2015 where past due 31-60 days were $90,150 compared to $1,489 in 2015.
5 Key Management Personals earned $1,044,916 in salary and bonuses + $119,134 in share-based payments which is 6.5% of total revenue or 27% of Net Income After Tax (NIAT).
Share ownership as of Dec 2015
Rene Goehrum, CEO & President owns 16% of shares.
Alfred D'Souza, VP and CFO owns 11.3% of shares.
Management and board owns 4,517,461 or 31.36% of shares as of April 2016.
The good
- Earnings are steadily growing and not erratic.
- Growth rates for EPS, Sales, BVPS, ROE, ROIC is over 15%
- No debts - management said they do not like debts
- FCF growing
- Management owns a significant portion of shares.
- Backed by the success of their products, for three consecutive years (2012, 2013 & 2014) BioSyent was named to the TSX Venture Top 50 strong performing companies.
- BioSyent has been named one of Canada’s fastest growing companies by PROFIT Magazine in 2013, 2014, 2015, and 2016.
- FeraMAX® brand was recently named as the #1 recommended over-the-counter (“OTC”) iron supplement brand in a national survey of Canadian physicians and pharmacists.
- Listed on the Canadian Venture exchange so it is considered higher risk.
- Price under $10 so it may take a while before it goes over and may not have any institutional interest until price goes over $10.
- Current market cap is $107.6 million so it's considered small cap.
- Currently, majority of income is coming from Feramax. Other products are growing, but the products are going to only grow up to a certain limit as they are not broad market products with limited upside. They will have to continue to add new product mix to grow their revenues once existing products reaches saturation.
- The limited market is also a deterrent for other companies to enter their market.
- Any regulatory delays in approving products to market could significantly affect revenues in the future.
Using Future P/E of 28.2 which is the historical P/E for this company and 15% target return. Intrinsic value/Sticker Price is $36.48. Margin of Safety (MOS) price is half so $18.24. It is selling well below MOS price.
Magic Formula
Return on Capital is 46.44%.
Earnings Yield is 5.55%
I'm not sure how to do the ranking so I skipped that.
Note: TSX considers the following for capitalization. However, Canada has a smaller market compared to the US so US and Canadian companies cannot be properly compared using market capitalization.
Large cap(> $1 billion)
Mid cap($250 million -$1 billion)
Small cap($50 million -$250 million)
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