ORLANDO, Fla., July 10, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., announced that it has issued a Bovie Medical, Corp. (AMEX:BVX) first quarter 2007 research update.
Holmes Osborne, CFA, RedChip Research Analyst, wrote in the report:
Bovie, founded in 1982 has twenty five years of operating history. The Company has a strong balance sheet including growth in its cash position from 1.29 million in FY05 to $2.95 million in FY06. This represents an increase of 129 percent. Bovie grew gross margins by 2.3 percent from FY05 to FY06. In addition, the Company has averaged 22 percent annual revenue growth from 2002 to 2006. BVX's continued revenue and earnings growth coupled with a low price tag make it an attractive Buy.
We established a target price of $8.82 on BVX. This is predicated upon a 5x price to sales ratio using the trailing twelve months of revenue. We examined the P/S ratio of industry peers, and competitors such as Medtronics and Zimmer trade at multiples of 5x and 6x respectively. BVX's multiple of 5x P/S is justified from their strong financial position, and explosive earnings growth in FY 2006.
About RedChip Companies, Inc.
RedChip Companies is an international small-cap research and financial public relations firm with offices in Beijing and Orlando and affiliates in New York and San Diego. RedChip delivers measurable results for its clients through its extensive international market expertise as well as its comprehensive platform of products: RedChip Research(tm), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences held throughout the United States, and RedChip Radio(tm). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/services.asp.
Disclosures
The analysts contributing to this BVX RedChip report do not hold any shares of BVX. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the BVX RedChip report. Additional information on the securities mentioned in this report is available upon request. This BVX RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the BVX RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. BVX is not a client of RedChip Companies, Inc., or any of its affiliates.