Interesting to see the rise of BAX - same sector/subindustry as...

Interesting to see the rise of BAX - same sector/subindustry as TOX...

Looking at BAX - they have a market cap of about $220 million a pe of about 34 and trading on a pe of 21 based on 2006 forecasts.

The share price of BAX has gone up about 6 times since end of 2002 when it only had a market cap of $40 million, and had just made a 'pre tax' profit of approx $655,000 for the 1st half of the fin year 2003. It went on to make a pretax profit of about $2 million for all of fin year 2003 and had a market cap of approx $66 million by the end of the 2003 fin year.
In 2004 fin year BAX made a pre tax profit of just over $8 million - up 4 fold and ended the year with a market cap of nearly $160 million (ie share price nearly tripled that year).
First half this year 2005 they have already made a pre tax profit of over $5 million and on target to trump last year and make at least $11 million pre tax when results announced soon.

Market cap of $220 million on current expectations and 2006 outlook. Been a story of strong revenue and earnings growth and very high operating margins - approx 35% operating margin for 1st half this year.

Of course - entirely different financial position to TOX and specific business focus - but I can see potential there in a high operating margin sector for TOX to grow earnings and share price fairly fast. Will be an interesting stock to watch over the next year to see if they can take what appears to be working for them and grow the business.