Tag Archives: brli

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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Bio-Reference Laboratories Analysis & Valuation

BRLI logoBio-Reference Laboratories (BRLI) was ranked tier 1 in a recent stock screen for companies that exhibited steady, predictable, growth with little debt. As part of the value investing workflow we developed in an earlier article, a detailed analysis must now be conducted, followed by a determination of BRLI’s intrinsic value.

Bio-Reference Laboratories is a company which provides clinical testing services to customers primarily in the Northeastern United States. The customer base includes physician offices, clinics, hospitals, employers and the government, and it is the fourth-largest testing services provider in the country. In addition to standard tests, Bio-Reference Laboratories has great expertise in cancer pathology through its GenPath unit. Also of note is the GeneDx genetics laboratory, which is a leading provider in the diagnosis of rare genetic diseases. Continue reading

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