There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

June 20, 2011 - TECHNE Corporation (TECH-NASDAQ) and its subsidiaries engage in the development, manufacture, and sale of biotechnology products, and hematology calibrators and controls primarily in the United States and Europe.

Its hematology product line has whole blood CBC controls/calibrators; linearity and reportable range controls that provide a means of assessing the linearity of hematology analyzers for white blood cells, red blood cells, platelets, and reticulocytes; whole blood reticulocyte controls for manual and automated counting of reticulocytes; whole blood flow cytometry controls for flow cytometry instruments; whole blood glucose/hemoglobin control to monitor instruments which measure glucose and hemoglobin in whole blood; erythrocyte sedimentation rate control to monitor erythrocyte sedimentation rate tests; and multi-purpose platelet reference controls for use by automated and semi-automated analyzers.

TECHNE Corporation sells to research and clinical diagnostics markets. The company was founded in 1976 and is headquartered in Minneapolis, Minnesota.

It's all about blood at TECHNE. And not just U.S. blood. The company's revenues were almost split: 55% domestically and 45% internationally in 2010. Total sales were $269 million. This year, 5 analysts forecast $286.71 million, then see $321.90 million in 2012.

As sales ramp, so do earnings. They've gone from $2.64 in 2008 to $2.78 to $2.82. This year, 5 analysts have a consensus view of $3.03, then see a 10% increase to $3.34 in 2012. For the June quarter (TECH's final with a fiscal year ending June 30), look for 77 cents compared to 69 cents last year in the fourth. In the first quarter, expect 84 cents vs 71 cents.

Healthcare is one of the primary focuses for many emerging countries. There's also an emphasis on improving hospital utilization, here and abroad. Both of those suggest higher demand for TECH's Hematology group. Its products are for hospitals and labs to test accuracy of blood analysis instruments and biotech products.

Speaking of biotech: sales are up in China for biotech products. In the fiscal third quarter, they increased by 8% while in the U.S., they improved by 10% and in Europe by 8%. R & D spending is the impetus for the higher revenues. While government R & D has slowed, companies are picking up demand.

One big plus for TECH: no debt and fairly good cash supply. With $214 million in the bank, the company can continue to fund R & D for new products like testing and assay kits. Management can also look to buy other firms, as it just did with Tocris Holdings in the U.K. for $124 million in cash. The compay has a strong array of products for several illnesses, including cancer and cardiovascular disease. It should be dilutive to earnings for a while but contribute to profits within 3 to 5 years.

Essential numbers: Trailing P/E is 26.56 and Forward P/E is 23.46. Price to sales ratio is 10.31 and Price to book is 5.07. Book value is $15.26. Operating margin for the last 12 months was 57.20% while Profit margin was 39.43%. Return on equity was 20.57% and Return on assets was 18.03%. Total cash per share is $5.76. Current ratio is 16.73. In the last year, the stock is 28.44%. There are 37.13 million shares Outstanding with Insiders owning 6.32%. Float is 34.77 million and Institutions have 82.30% of the Float. The annual dividend is $1.08 for a yield of 1.4%.

Conservative investors will like most things about this stock except the price. Investors who bought in early 2009 when the stock dipped to $45.40 have been well rewarded. But at $77 a share and valuations stretched, buying at this level may take real faith. On the other hand, this stock has always carried high valuations. And kept going up.

- Company Web site: www.techne-corp.com

- Ted Allrich