Meridian
Bioscience Inc. makes diagnostic test kits, purified reagents as well as biopharmaceutical
technologies to hospitals, laboratories, veterinary and physician offices,
diagnostic manufacturers and biotech companies.
VIVO has grown dividends and profits at a 15-20% pace over the last ten
years earning a 20-30% return on equity.
The dividend growth rate has slowed recently but should resume growing
at the same rate as profits in the future.
The company’s prospects appear bright as a result of:
(1)
impressive growth in the company’s illumigene molecular
test platforms,
(2)
aggressive cost control effort,
(3)
strong pipeline of new products.
Negatives:
(1)
tough economic environment discourages doctor visits,
(2) its large
foreign exposure subjects it to currency risks.
VIVO
is rated B++ by Value Line, has no debt and its stock yields 4.2%.
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2002
VIVO 4.2% 5% 80% 9
Debt/ EPS Down Net Value Line
Equity ROE Since 2002 Margin Rating
VIVO 0% 30% 1 21% B++
*few companies in VIVO industry
pay a dividend
Chart
Note: VIVO stock made
limited progress off its March 2009 low.
While it has surpassed the downtrend off its April 2008 high (straight
red line), it has not successfully penetrated the November 2008 trading high
(green line). Long term, the stock is in
a trading range (blue lines).
Intermediate term, it is in a trading range (purple lines). The wiggly red line is the 50 day moving
average. The High Yield Portfolio does
not own a position in VIVO. The upper
boundary of its Buy Value
Range Sell Half
Range
10/12
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