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    Stock Alert for SeraCare Life Sciences Inc. (SRLS)

    SeraCare Life Sciences Inc. (SRLS) serves the global life sciences industry by providing vital products and services to facilitate the discovery, development and production of human diagnostics and therapeutics. The Company’s innovative portfolio includes diagnostic controls, plasma-derived reagents and molecular biomarkers, biobanking and contract research services.  Its quality systems, scientific expertise and state-of-the-art facilities support its customers in meeting the stringent requirements of the highly regulated life sciences industry. It operates two segments: Diagnostic and Biopharmaceutical Products, and BioServices.

    Share Statistics (23-June-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q1 

    2010

    Q1 

    2011

    %  

    Chg

    Symbol SRLS Revenue, $Mn 44.43 50.38 13.4% 12.85 11.00 -14.4%
    Current price $4.05 Gross marg. 34.8% 41.3% 18.7% 43.3% 40.0% -7.6%
    52wk Range: $2.71-$4.97 Oper. margin 13.6% 11.8%
    Avg Vol (3m): 39,399 Net margin -34.6% 13.3% -138.4% 16.3% 12.4% -23.9%
    Market Cap. 78.09M
    Shares Outstanding 19.28M EPS, $ -0.28 0.35 -225.0% 0.11 0.07 -36.4%

    Source: Reuters.com, SEC Filings.

    Recent News

    SRLS shares traded as much as 23.8% higher on Thursday after MSMB Capital Management (MSMB) said it has made a proposal to the board of SRLS to acquire the entire stake of the Company for $4.25 a share or an aggregate of $82 million.  The proposal puts an almost 22% premium on the stock’s close on June 22.

    MSMB said its offer is conditioned on completion of cursory due diligence and other customary provisions. The offer is not subject to any financing condition.

    Martin Shkreli, chief investment officer of MSMB, was quoted in the report saying: “While I appreciate the professional response SeraCare management has provided to the offer I privately communicated, I now believe it is in SeraCare’s shareholders’ best interest for this process to become public”

    Click here for full text of the letter that MSMB sent to SRLS board of directors.

    Analysts at Morgan Joseph recently initiated coverage with a Buy rating on SRLS.

    Shares of SRLS have been moving within a range of $2.71 – $4.97 over the past 52-weeks. The stock is currently trading above its 50-day moving average of $3.55 and just below its 200-day moving average $4.06. Market capitalization currently stands at 78.28 million and it has 19.28 million outstanding shares.

    Visit SRLS at www.seracare.com

    Financial Summary

    SRLS reported revenue of $11.0 million for the quarter ended March 31, 2011, compared to $12.9 million in the year-ago quarter, down 14%. Gross margins decreased to 40% for the quarter compared to 43% for the same quarter of the prior year.The Company reported net income of $1.4 million and earnings per share on a basic and diluted basis of $0.07 for the quarter ended March 31, 2011, compared to the year-ago quarter’s net income of $2.1 million and earnings per share on a basic and diluted basis of $0.11 .

    SRLS said it increased its cash balance to $16.9 million as of March 31, 2011. It generated $0.9 million in cash from operations during the quarter, marking the Company’s ninth consecutive quarter of positive cash from operations.

    Financial Strength (23-June-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 5.56 2.24 2.09 0.71
    Current Ratio (MRQ) 7.78 2.80 2.63 1.03
    LT Debt to Equity (MRQ) 0.02 10.87 23.24 136.67
    Total Debt to Equity (MRQ) 0.13 14.98 29.40 182.40
    Interest Coverage (TTM) 14.15 0.20 1.60 18.18

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among three polled investment analysts. Against the Seracare Life Sciences Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 2 0 1 0 0 0
    4 weeks ago 2 0 1 0 0 0
    2 months ago 3 0 0 0 0 0
    3 months ago 3 0 0 0 0 0
    Last year 2 0 0 0 0 0

    The two analysts offering 12-month price targets for SRLS have a median target of 6.00, with a high estimate of 7.00 and a low estimate of 5.00. The median estimate represents a 71.92% increase from the last price of 3.49.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates Mean High Low 1 Year Ago
    SALES (in millions)
    Quarter Ending Jun-11 3 12.26 14.27 11.00 14.80
    Quarter Ending Sep-11 3 12.66 15.29 11.20 15.30
    Year Ending Sep-11 3 46.38 50.94 44.00 57.20
    Year Ending Sep-12 1 49.50 49.50 49.50
    EARNINGS (per share)
    Quarter Ending Jun-11 3 0.07 0.10 0.06 0.14
    Quarter Ending Sep-11 3 0.08 0.11 0.05 0.15
    Year Ending Sep-11 3 0.27 0.35 0.22 0.51
    Year Ending Sep-12 1 0.32 0.32 0.32
    LT Growth Rate (%) 1 20.00 20.00 20.00

    Technical Analysis

    Source: http://stockcharts.com

    SRLS’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility.

    SRLS’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    June23-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Life Technologies Corp. LIFE 52.58 9.40B 13.59 12.17 2.47 2.32
    Baxter International Inc. BAX 58.56 33.40B 13.75 12.51 2.45 2.33
    Thermo Fisher Scientific Inc. TMO 62.93 24.12B 15.24 13.39 2.08 1.95
    Bio-Rad Laboratories Inc. BIO 117.15 3.28B 19.36 17.03 1.59 1.50
    Drugs – Generic Median 20.73 n/a 2.21 n/a
    SeraCare Life Sciences Inc. SRLS 4.05 78.09M 15.00 12.66 1.68 1.58

    Source: Thomson Financial

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