skip to main | skip to sidebar
VFC's STOCK HOUSE
After years of blowing through spare cash VFC turned to stock investing. This blog was created in order to share my own info with friends and others in the investing community. These postings are geared toward the small investor, those just trying to get the leftovers left behind by the big boys. Disclaimer: Do your own Due Dilligence before investing. Do not Buy/Sell based solely on VFC's stock picks or opinions, the blog is not intended to offer advice, just information.
Tuesday, July 28, 2009
VFC's Take on the BioElectronics (BIEL.pk) Conference Call
Shares of BioElectronics (BIEL.pk) shot up to a high of .095 on Tuesday morning trading before a scheduled conference call at 11AM. The call did not provide the stock price boost that was expected by many short term traders and the stock closed the day down by over 22%.
Before analyzing the information released in the call, let's first look at the action of the stock.
Many investors and traders were hoping that the company was going to release news of an FDA approval either during or just before the call- hence the pretty significant run up over the past week.
Investors realized early that approval news was not going to be announced because if it were, a press release would most likely have been issued just before the commencement of the conference call. When the traders realized that nothing discussed in the conference call was going to cause a significant short term spike in price they bailed to look for another quick money making opportunity. Additionally, those who were sitting on huge gains over the past few weeks undoubtedly decided to realize some profits when they saw the stock hit nine cents. Those factors both contributed to the 22% drop in price on Tuesday, in my opinion.
However, those invested for the long term should be unfazed by the trading action on Tuesday and should, if in fact invested for the long term, take advantage of the drop and add more shares.
While the conference call did not contain news that would immediately impact the stock price, it did reinforce the long term prospects of growth for the company.
Most significant, in my opinion, is the fact that the most recently concluded trial
that measured the effectiveness of Actipatch in the treatment of foot and ankle plantar fasciitis produced outstanding results- including a 100% mark for safety, the only real issue that I saw as a potential roadblock for the product.
In my opinion, and in the opinions of a growing number of medical providers it seems, the fact that the BioElectronics products are safe and effective makes them a no-brainer alternative to narcotics, acetaminophen and ibuprofen- all products that have recently come under scrutiny by the FDA.
Additionally, according to BioElectronics rep Joe Noel, the success of this trial will enable the company to file another approval application with the FDA- only this time the application will cover all muscular-skeletal indications in one shot. That will be a very significant approval, if granted.
Aside from the information presented in the conference call, a few doctors and 'fans of Actipatch' gave their own personal success stories and one person outlined her own projections for the potential monetary value of BioElectronics' products. All good information, but what really matters at this point is the FDA approvals and international growth.
I retain my position that the potential of this company and it's products are huge. Long term investors need to ignore the daily price action of the stock and take any opportunity to accumulate on the dips. That being said, I wouldn't blame anyone for trying to trade in and out of the stock a little bit in order to both realize some profits and take back an initial investment in order to 'play on house money.'
I almost sold some shares today when I saw the nine cent price, but as much as a fan I am of realizing profits, I also recognize that this stock could shoot up in a moments notice (see: TTNP). If that happens, you don't want to be standing on the sidelines.
My belief in the fact that we have a winner with BIEL stems mostly from the potential of the products but, from reading recent press releases and listening to the conference call, I also get the impression that the company is serious about being a position to trade on a big board when the time is right. That will be very significant later on down the road as the potential of the products are being realized.
For now, long term investors should not worry about the short term action of the stock- except to add on any dips. If a reverse split does occur, as has been speculated, then I will also be adding on any drop after that event.
However, don't be afraid to realize some profits along the way because even though the BioElectronics story looks good, nothing is a sure bet in the market.
Remember, being a low-priced pink sheet stock, BIEL is trading as a 'trader's play'. Take advantage of that action and buy on the dips.
Disclosure: VFC is long BIEL.pk.