Monday, August 21, 2006

Strata... what? S t r a t a g e n e

I usually don’t follow the single digit midget’s (also known as low priced stocks), but I am stalking Stratagene (Ticker: STGN). They’re one of the lower tier companies supplying reagents to the life science sector. They have some decent products such as their QPCR and competent cells. Most of their other products are just so so… The stock is trading at a 52 week low and is valued at only ~ 1X sales (~$100 million market cap). The company is making $$$; it's expected to earn $0.22 per share this year and $0.35 next year. This is very cheap compared to the big boys such as Invitrogen (Ticker: IVGN), Techne / R&D Systems (Ticker: TECH) and Qiagen (Ticker: QGEN). The company does have significant litigation risks, which is probably depressing the price of the stock. I don’t own any shares in this company, but when something gets this cheap; it’s very tempting. It's worth keeping a close eye on it...


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