Today all you read about is Health Care. One of the ways to control Health Care costs is to use drugs instead of surgery and hospitalization. The new Health Care Plan will have a very large drug benefit in it no mater what form it takes. According to BarChart one of the drug companies continuing to hit new highs is Bioscrip (BIOS).
BIOS's product is comprehensive pharmaceutical care solution through the use of specialty medication distribution systems and clinical management services. They fall in the Retail Drug Store sector and have major competition from Rite Aid, Herbalife, Walgreens and CVS.
Although they are the smallest of the group with only 1.4 billion in revenue analyst are starting to notice them. Arnold Mark of Piper Jaffray recently put out an Overweight recommendation on BIOS. Why?
Although the have had increasing revenue for the last 3 years, last year they had some non-reoccurring expenses that gave them a loss. This year they have been increasing profits every quarter and project a profit by year end. Their gross profit margins have always been positive. Good numbers on a fundamental basis, but how about the technical analysis numbers?
BarChart uses 13 TA indicators and they rate this stock a BUY on 13 out of 13. The price has hit 5 new highs in the last 20 trading sessions with 3 in the last 5 days. Its 65 day price return has been 47%.
My recommendation: The new Health Plan will have a major drug component so BUY BIOS at the 6.50 range and put a protective stop loss at 5.50
No comments:
Post a Comment