The recent Annual Report forecasts revenue growth to $4.1M in 2012, which should allow a move toward profitability if Operating Expense stays constant. I do think we are on the cusp of stock appreciation this year. We're currently trading at a Price/Sales of 2. A move into profitability, driven by revenue growth, should drive share price. We're already seeing more buying interest as evidenced by increasing daily volume (though still very low from a dollar perspective) and demand. I'm going to predict a share price of .30 to .60 based on a P/S of 5-10 within the next 6 months.
Great quarterly results today! 2 big headlines include increasing annual revenue guidance to $5M (from $4.1M) and also stating that this is the first quarter where investor funds were not needed for operations. The company intends to achieve positive cash flow in Q4 of this year. This is a great story...I had previously posted on April 27, 2012 a share price target of .30 to .60 based on a Price/Sales of 5-10. We are now trading at the .30 mark, having hit intraday highs of .40, all based off the revenue forecast of $4.1M.
Based on today's guidance from the company, I believe a reasonable near-term valuation is .70 to $1.10 based on a P/S of 10-15. The increasing revenue, less reliance on investor funding, and move toward positive cash flow and eventually profitability justify a more aggressive valuation. This company has continued to deliver quarter after quarter, and there is every indication of more to come.
Browsing older messages and saw this from a few months back...I remain bullish on the prediction below, which would be a share price between .30 to .60 within the next 3 months. And that would be based on existing revenue forecast of $4.1M for 2012, a figure which would be revised upward upon regulatory approval for various Biolife clients products. Stocks trade on future potential, and BLFS has quite a bit of catching up to do...