BioSpecifics Story

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BSTC -- USA Stock  

USD 52.60  0.66  1.27%

In general, we focus on analyzing BioSpecifics (NASDAQ:BSTC) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build BioSpecifics Technologies Corp daily price indicators and compare them against related drivers. Today's article will go over BioSpecifics Technologies. We will look into a few reasons why it is still possible for the company to generate above-average margins and positive cash flow.
Published over a month ago
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Should I hold on to my BioSpecifics Technologies (NASDAQ:BSTC) position?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. BioSpecifics Technologies has an asset utilization ratio of 86.94 percent. This suggests that the company is making $0.87 for each dollar of assets. An increasing asset utilization means that BioSpecifics Technologies Corp is more efficient with each dollar of assets it utilizes for everyday operations.
The successful prediction of BioSpecifics Technologies stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as BioSpecifics Technologies Corp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of BioSpecifics Technologies based on BioSpecifics Technologies hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to BioSpecifics Technologies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to BioSpecifics Technologies's related companies.

Use Technical Analysis to project BioSpecifics expected Price

BioSpecifics Technologies technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of BioSpecifics Technologies technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of BioSpecifics Technologies trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How BioSpecifics utilizes its cash?

To perform a cash flow analysis of BioSpecifics Technologies, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash BioSpecifics Technologies is receiving and how much cash it distributes out in a given period. The BioSpecifics Technologies cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. BioSpecifics Technologies Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 22.29 Million

Acquisition by Jennifer Chao of 1726 shares of BioSpecifics Technologies subject to Rule 16b-3

Legal trades by BioSpecifics Technologies insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
BioSpecifics insider trading alert for grant of common stock $0.001 par value by Jennifer Chao, the corporate stakeholder, on 17th of July 2020. This event was filed by Biospecifics Technologies with SEC on 2020-07-17. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Going after BioSpecifics Financials

The company reported the previous year's revenue of 39.73 M. Net Income was 24.55 M with profit before overhead, payroll, taxes, and interest of 38.19 M.
 2019 2020 (projected)
Interest Expense35.134.89
Gross Profit38.19 M31.02 M

Deferred Revenue Breakdown

BioSpecifics Technologies Deferred Revenue is increasing over the years with slightly volatile fluctuation. Ongoing Deferred Revenue is projected to grow to about 7.9 M this year. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. BioSpecifics Technologies Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 7.36 Million
2012
2013
2014
2015
2016
2017
2019
2020
2012340,914
2013207,390
2014148,135
2015198,757
20167.6 Million
20176.4 Million
20197.36 Million
20207.94 Million

Our take on today BioSpecifics Technologies rise

Current standard deviation is at 2.87. BioSpecifics Technologies Corp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.31. However, we do advice investors to further question BioSpecifics Technologies Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Perspective on BioSpecifics Technologies

Whereas some other companies under the biotechnology industry are still a bit expensive, BioSpecifics Technologies may offer a potential longer-term growth to investors. The inconsistency in the assessment between current BioSpecifics valuation and our trade advice on BioSpecifics Technologies is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to BioSpecifics Technologies.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of BioSpecifics Technologies Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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