Techne Corporation: Good Risk/Reward Proposition

Techne Corporation (TECH) is a mid-cap biotechnology company that offers a good risk/reward profile, It is engaged in the development and manufacture of biotechnology products and hematology calibrators and controls. The company appears to be richly priced as compared to its competitors. However, we think this is a hidden gem.

The company's strengths include a strong financial position with no long-term debt and cash in excess of current liabilities, expanding profit margins and outstanding return on equity.

For a detailed analysis, see here.

Quick Facts

The results are in for the first quarter and Techne reported a decline in net earnings of 6.4% to $26.8 million ($0.72 per diluted share). In the prior year quarter, the company reported net income of $28.6 million or $0.74 per diluted share. Consolidated net sales for the quarter were $66.5 million, a 4.0% decrease from $69.32 million in the year-ago quarter. Four analysts estimated revenues of $66.70 million for the quarter.

TECH announced that its Board of Directors has decided to pay a dividend of $0.26 per share for the quarter ended September 30, 2009. The quarterly dividend will be payable November 23, 2009 to all common shareholders of record on November 9, 2009. Future cash dividends will be considered by the Board of Directors on a quarterly basis.

Disclosure: The author has no position in TECH.