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URL:  http://boards.fool.com/purchase-of-emergent-biosolutionsebs-25410412.aspx

Subject:  Purchase of Emergent Biosolutions(EBS) Date:  4/19/2007  11:31 AM
Author:  manucastle Number:  2 of 5

I have purchased EBS today :-

Mike Klein screen alert +
3:52AM Emergent Biosolutions announces that HHS and DoD issued notices of intent to procure up to a combined 22.75 mln doses of BioThrax (EBS) 13.35 : Co announces that the U.S. Department of Health and Human Services and the U.S. Dept. of Defense issued two separate notices of intent to procure up to a combined total of 22.75 mln doses of BioThrax. In a Presolicitation Notice issued today, HHS stated its intent to procure 10.4 mln doses of BioThrax for the Strategic National Stockpile with options for up to an additional 8.35 mln doses. HHS announced that it intends to enter sole source negotiations with the co to finalize the procurement and to make an award on or about July 24, 2007. Separately, DoD issued a Special Notice signaling an anticipated sole source contract award to procure a minimum of 4 mln doses of BioThrax, over a base period and 3 optional ordering periods.

Price = 14.32
EPS = .83
Gross profit margin = 84.2 Industry 75.5
ROA = 15.8 Industry -40.6
ROE = 30.2 Industry -35.0
PE = 17.1 Industry 29.7
Insider ownership = 78.9
Greenblatt ROIC = 38.93
Greenblatt Earnings Yield = 10.31
MaxPrice = 37.23 Discount 62% **

VERY undervalued in my book !

Generally good news. :-
http://finance.yahoo.com/q?s=ebs

(See posts 388/584/665/760/1051 on 'Investment Analysis Clubs / Buffett Small Cap Investing' board for extra due diligence applied ).MaxPrice is a generic version of Mike Klein's Maxprice and ROIC and Earnings yields are generic versions of Greenblatt's metrics.

All good enough for my money. I only recommend stocks that I own !

See 'Investment Analysis Clubs / Buffett Small Cap Investing' board and my CAPS profile for further excellent companies selling at a discount to Intrinsic Value. CAPS only shows my selections over 100Mill (unfortunately due to restricted lower market cap applied by MF CAPS).

As stated on the 'Investment Analysis Clubs / Buffett Small Cap Investing' board my aim is to obtain up to 50% returns p.a. as Buffett stated he could obtain (3 times) recently. A very difficult task but you can follow along with my buys and sells on MY CAPS , where I put my money where my mouth is . If I perform well I hope you can benefit. If not , feel free to ignore my comments. CAPS allows each and everyone of us to be clinically judged on our stock picking abilities over the LONG TERM.

Please do your own due diligence before investing.

Manucastle :)

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