BIOSENSORS

Rock
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10 years 11 months ago #14306 by Rock

BIOSENSORS was created by Rock

Biosensors is a good growth stock which is able to grow it's top and bottom lines yearly. I like Biosensors because of good profit margin and resilence business.
Biosensors is one of my core holding since 2009 till early till early 2012 and have already sold all the shares in early last year at a good gain. The reason is because there is no incentive (no divident payment) to hold on at $1.40. The other reason is the Chairman who is major shareholder had sold most of his holding. So I prefer to wait for the outcome development of this company.

I'm now reforcusing on Biosensors reasons & believf Biosensors has potential to growth it's business:
*** Health-care stock which will not influence by business cycle therefore business resilence in nature.
*** The Chairman & key personnel are still around.
*** The company able to growth it's top and bottom lines yearly.
*** High profit margin
*** Company is winning market shares.
*** The recent events stated below looks promising & positive for the company. See below & links

The nagative factor is the company Licensing & royaties revenue is reducing recently but overall profit still on the rise but at a slower pace.

I will be loading up today.

On 30/5/2013 - Biosensors shares buy-back 735 lots at $1.195
On 31/5/2013 - Biosensors shares buy-back 735 lots at $1.20

On 31/5/2013 - Biosensors enter into Liciensing agreement with Eurocor for Drug-Eluting mBallon Range. See attached link.
info.sgx.com/webcoranncatth.nsf/VwAttach...oCor.pdf?openelement

On 26/5/2013 - Biosensors completes Spectrum Dynamics Assets Acquisition for US $51 million. See attach link.
info.sgx.com/webcoranncatth.nsf/VwAttach...tion.pdf?openelement

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Dongdaemun
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10 years 10 months ago #14451 by Dongdaemun

Replied by Dongdaemun on topic BIOSENSORS

I was just checking out Biosensors. Agree that the profit margin is good, but it's kind of expected for high-end medical products. Net margin was 34% in FY13 and 125% in FY12 (not sure why so high). I also like the high free cashflow.

If only, its profit growth were more sexy. I hesitate to fall for this too hard as the profit growth is pretty unexciting at around 10% or lower.

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novice
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10 years 10 months ago #14454 by novice

Replied by novice on topic BIOSENSORS

I am new in stock market, and i do not know much about the company and therefore i am not in the position to give any comment. However i would appreciate if someone can tell me if the formula to calculate profit margin below is correct :

profit margin = (selling price - cost) / (selling price) x 100%

if so, how can the margin be 125% ?

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greenrookie
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10 years 10 months ago #14455 by greenrookie

Replied by greenrookie on topic BIOSENSORS

Your calculation of margin is wrong.

Gross margin is gross profits / revenue x 100%

Net profit margin is net profits / revenue x 100%

Gross profits is profits after cost of sales only.

Net profits is profits after cost of sales, other expenses or gains and after tax.

Get a book on reading of financial statements. U are hunting blindly if u can't understand financial statement, an will most probably be prey on rather than hunt.

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novice
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10 years 10 months ago #14457 by novice

Replied by novice on topic BIOSENSORS

thanks a lot.

gross margin = gross profit/revenue x 100%

for sure revenue is bigger than gross profit, correct? if so, the denominator is always bigger than numerator. so gross margin cannot be more than 100%.

am i calculating it correctly?

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greenrookie
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10 years 10 months ago #14458 by greenrookie

Replied by greenrookie on topic BIOSENSORS

Yup, but net margin can be higher than 100% due to 1 off gain

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