Opko Health reported a loss of 3 cents per share vs. a profit of 25 cents last year. Revenues more than doubled to $300 million up from $145 million last year. The stock was down 7% on Monday, but has since recovered about 3% to $9.40. Trading at a PE ratio of 40, Opko is not cheap, but is less expensive than many companies in the Healthcare industry. A number of institutional investors are also bullish. California State Teachers Retirement System and Teachers Advisors increased their positions in Opko Health by 6% and 4% respectively. In addition, BlackRock Group (BLK) boosted its stake by 19% earlier in the year, providing us with confidence the firm has strong growth prospects ahead.
Revenues were very strong and at this rate the company should be able to produce substantial profits in 2017. With a market cap of $5 5 billion Opko has great potential. We are willing to wait for profits to surface as long as revenues continue to grow at this high rate.