Tag - BITI

When it comes to the medical imaging services required to complete pharmaceutical clinical research, Bio-Imaging Technologies, Inc. (Nasdaq: BITI) has an unbeatable image.

Over the past 17 years, Bio-Imaging Technologies has become the largest independent provider of the equipment and technology needed for medical imaging used in the pharmaceutical industry’s clinical trials. Within the alphabet soup of CT, MRI, PET and DEXA, to name a few, Bio-Imaging Technologies has developed the reputation of a Grade A performer among contract research organizations.

The same holds true for Bio-Imaging’s stock. While the share price has trended lower since hitting an all-time high in late November, the company’s recent solid results have given investors reason to expect more from the Newtown, Pa., company.

Of five analysts surveyed by Thomson Financial, three have Bio-Imaging as a “buy,” and two rate it a “strong buy.”

Not bad for a microcap with a market capitalization of around $99 million.

As big pharma looks for ways to cut costs, one favorite technique has been to outsource functions. Having a third party handle the costly and time-consuming activities involved in getting a drug ready for FDA approval on the path to the marketplace is becoming more popular.

That’s where Bio-Imaging Technologies steps in. Founded in 1990, the company saw its shares hit an all-time trading high of $9.95 on Nov. 29. Since then, Bio-Imaging’s shares have bounced lower in the midst of a tumultuous market. Still, the stock remains considerably higher than its 52-week low of $5.75, established May 7. The stock closed at $8.45 on Wednesday.

CoolcatReport.com publisher Kevin Kennedy uses a proprietary trading and screening system, based in large part on momentum. For example, the stocks that make his buy list must be trading above their closes of 3, 6 and 12 months ago. In addition, they must have made new 52-week highs in the past two months.

Generally, Kennedy prefers stocks that have made new highs, have pulled back in a consolidation pattern, and are then poised to again move to new highs.

This basic strategy is applied to a wide range of stock ideas through his multiple Coolcat newsletter services. Small caps are featured in his Coolcat Explosive Small Cap Growth Stock Report.

“This batch of stocks is hanging out just above its 50-day moving average, offering some interesting entries with decent risks,” Kennedy says. “All have put earnings season to bed and appear well-positioned to move up from here.”

Passing Kennedy’s screening process is a trio of biotech stocks. Metabasis Therapeutics Inc. (Nasdaq: MBRX), says Kennedy, has a “promising pipeline” of preclinical and clinical product candidates targeting metabolic diseases such as diabetes, hyperlipidemia and obesity.

He notes that first-quarter revenues jumped 252% to $3.4 million, which included a $1.8-million upfront license fee received from Schering-Plough Corp. (NYSE: SGP) and license fee and sponsored research revenue from its hepatitis C collaboration with Idenix Pharmaceuticals Inc. (Nasdaq: IDIX).

The company – with a market cap of $243 million -- had $71.3 million in cash, cash equivalents and securities at the end of March, Kennedy notes.

Meanwhile, BioImaging Technologies Inc. (Nasdaq: BITI), with a market cap of $78 million, offers services to support the pharmaceutical, biotech and medical device industries in product development.