Stock Buy

I made my first trade in 2 or 3 months when I bought some PRXI Premier Exhibitions yesterday. They're a small company and it's a small buy for me. The specialize in museum-style exhibitions that travel from city to city - notably the Titanic exhibition and the controversial Bodies exhibition that shows disected human anatomy. Discover magazine did an article on the Bodies exhibition and I was amazed at some of the photos in the article.

The sourcing of the specimens from a Chinese teaching hospital is at the center of the controversy with the company. I think this is why stock is down along with high expenses in the most recent quarter.

From a business standpoint, I like the numbers a lot and can see continued growth in shows of this kind. ROE is at 27%, revenue growth is crazy, up to $61 million 2/08 vs. 6.9million at 2/09. The multilple on the stock is only PE of 12 right now. I guess companies like this have to continue to build interesting exhibits that will attract visitors - kindof like TV or movie companies, but it doesn't look particularly expensive right now.

I'm counting on their ability to reign in costs which are growing faster than revs and eating into profits in recent quarter. Their growth rate will help them, but they've gotta keep eye on profitability. From the recent transcript it sounds like they're experiencing some growth pains as they transition more company owned venues and increased/more professional staff.