BASI - not rateable - for now
In the theme of my love biotechnology support companies, I'd like to comment on a promising microcap. Too little for CAPS today, but perhaps I can rate this sometime.
BioAnalytical Systems (Nasdaq: BASI)
Bioanalytical Systems, Inc., through its subsidiaries, provides contract development services and research equipment to pharmaceutical, medical research, and biotechnology companies and institutions worldwide.
Market cap of only 33.4M (and add another 11M debt to the EV).
Effectively they are a smaller competitor of companies like CRL.
At first glance the financials are relatively blah. Sales are steady, but not growing too rapidly. Margins may have been getting a bit squeezed.
So what's to like - well the company, and by that I mean the people, and by that I mean - I'm a satisfied customer. As still a bit of a neophyte to the drug development world, this group was among the most professional, courteous, and helpful CROs I have worked with. I was not a primary contact on most of the programs, but was involved with all our contracts with them, and I really don't have a bad thing to say about them.
Word of mouth means a lot in this industry - and I have a hard time imagining that this company won't benefit from that down the road. Also, while they may look pricey on a P/E ratio, having just been profitable recently on a TTM basis, they currently sell at only 1X sales, and no major customer accounts for more than 10% of the business (Pfizer 2006 - 7.3% from 10k). BASI must be on someones radar as a potential acquisition.
Small caps are risky and micocaps even more so! Small companies can get killed by things as minor as a key employee departure. But I like the odds on these guys.
I don't own BASI, and don't normally play out my investing line invest into this risk well, but perhaps I'll take a flyer on this one sometime.