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 matter what form it takes. 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 (RAD), Herbalife (HLF), Walgreens (WAG) and CVS (CVS).
Though it is the smallest of the group with only $1.4 billion in revenue, analysts are starting to notice BIOS. 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.
I think BIOS is a buy in the 6.50 range, with a protective stop loss at 5.50.
Disclosure: I have no postions in BIOS at the time of publication
