I first heard of Techne Corporation (TECH) at my stock club last year when one of the members presented the stock....and we owned it as a club for a short period. I do not currently own any shares nor do any members of my family.
TECH had a great day today closing at $32.08 up $3.65 or 12.84%. The stock moved on news of its earnings report which was released today. TECH "...is engaged in the development and manufacture of biotechnology products and hematology calibrators and controls which are distributed throughout Europe."
The earnings report, mentioned above, was for Techne Corporation's fourth quarter ending June 30, 2003. Net earnings were $12.6 million or $.31/share (diluted) compared with a loss of $303,659 last year or ($.01)/share (diluted in 2002.
Results for 2002 were adversely affected by an $11.4 million charge or $.27/share last year due to a settlement with Amgen, Inc.
Consolidated net sales for the quarter were $39,425,932 and increase of 11% from the year earlier sales results.
Morningstar.com shows that revenues have increased consistently since 1998 when $67.3 million in revenue, $90.9 million in 1999, $103.8 million in 2000, $115 million in 2001, $131 million in 2002, and $145 million in 2003.
Free cash flow has been positive if somewhat inconsistent with $8 million reported in 2000, $40 million in 2001, and $5 million in 2002.
The company is loaded with cash with $107.7 million reported, way more than the $11.9 million in current liabilities and $16.2 million in long-term liabilities combined. In addition, the company has an additional $28.6 million in other current assets.
Yahoo.com shows a market cap of $1.16 Billion, with 40.8 million shares outstanding and 38.3 million of them that float. No dividend is paid. The price/earnings is moderate at 36.97, there are 2.48 million shares out short as of 7/8/03. This is significant as it represents over 8 trading days of average trading volume of 296,000 shares.
With no debt and great earnings reported, I like this stock a lot. Not exactly cheap with the p/e of 36.9 but the stock looks nice on a growth basis. I don't have any cash to buy any now.....but...one never knows....On ne sait jamais!
(did I get my French right?)
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