Bought Bio-Reference Labs Shares on the Dip

We picked up 160 shares of NY-based laboratory testing company Bio-Reference Labs (BRLI) for the Virtual Value Portfolio this morning. The $25.03 asking price was just too good to pass up.

The $4,004.80 purchase will be paid for from cash in our reserve fund.

Today’s valuation is better than what was available at the last bottom, reached in April this year. Traders who entered then had the chance to trade from under $24 to almost $38 in just seven months.

BRLI has touched P/E ratios of 20x and above during each of the previous four years. A return to even 18 times the newly issued, already reduced guidance for FY 2014 (ends Oct. 31, 2014) would support a $32.40 1-year target price.

Standard & Poors agrees with that assessment. Their fair value estimate runs $32.80.

See full details of all Market Shadows’ closed-out and open positions here .