Buying Bio-Reference Labs (BRLI)

BRLI logoToday Bio-Reference Laboratories (BRLI) is down more than 4.5% on no news to $26.45 at the time of this writing. In a recent article I performed a detailed analysis of the company and estimated an intrinsic value of $39.23. A buy target was set at $27.46 based on a 30% margin of safety.

A quick review of the company’s fundamentals does not reveal that anything significant has changed since the time of this analysis, and I am therefore adding to my position at this price level since the stock is trading below the target buy price. For tracking purposes I am adding BRLI to the Stockodo Portfolio. Based on an allocation of 10% of a $200,000 portfolio, a total of $20,000 will be allocated to BRLI, resulting in a purchase of 750 shares.

Related: Value Investing Workflow

An entry at $26.45 represents a 32.5% margin of safety over the company’s intrinsic value. My exit target will be 15% higher than IV, which would currently be at a price of $45.11 which would represent a simple gain of just over 70% if it is realized. On the downside we will look to exit the position only if the fundamentals that prompted us to select this stock in the first place change for the worse.

Readers: What is your opinion of an investment in BRLI at these price levels? Let me know in the comments below.

About Dustin Small

Dustin Small is the founder and editor of Stockodo and is a regular contributor to Seeking Alpha. You can learn more about him here and connect with Dustin on Twitter and Facebook.

Comments

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