Category Archives: Portfolio

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.

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Ebix Added to Model Portfolio

red check markYesterday I analyzed Ebix, Inc. (EBIX) in depth and estimated that the company’s current intrinsic value is somewhere in the vicinity of $30.40. The stock has been decimated recently by bad press, some red flags with respect to whether it can successfully integrate other companies it acquires into the overall business, and a slowdown in earnings growth over the past year. Despite all these warning signs, the stock is trading at just $16.66 currently, which is a 45% margin of safety! I am currently long Ebix and will be adding more to my position at this price level. For tracking purposes, I will also add Ebix to the stockodo portfolio. Continue reading

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