Stocks to Buy based on the Best Stock Market Research
BMSN - Bio-Matrix Scientific Group
Entest BioMedical Inc. (OTCBB: ENTB)is a majority owned subsidiary of Bio-Matrix Scientific Group Inc (OTCBB: BMSN). The Company is involved with the development of stem cell therapy treatments for Chronic Obstructive Pulmonary Disease (COPD), cancer immuno-therapies, testing procedures for diabetes and stem cell research applications for diabetes and other illnesses. The Company also is involved with medical device development (including stem cell extraction instrumentation). Currently, Entest is focused on research and development in areas of COPD and Immuno-Therapeutic Cancer Vaccines. The Company sees applications for its patent pending technologies in both human and animal venues. Immuno-therapeutic treatment of cancer - The patent pending Entest application involves perfecting the use of cell lines for sustained release of immunologically relevant cytokines for maximum anti-tumor immune responses in treating cancer. The treatment process itself will utilize an implantable encapsulation device as the vaccine delivery system and the initial focus will be treatment of cancer in canines. This canine cancer treatment may also provide clinical support for expansion into human cancer treatment. Chronic Obstructive Pulmonary Disease -There is currently no cure for COPD and therapy is limited to management of the condition and its symptoms. Over the next 5 years, it is estimated that over $170 billion will be spent on treating COPD in the United States. Entest believes its COPD treatment, which utilizes patent pending adult stem cell therapy coupled with photoceutical device enhancement, has the potential to reverse COPD related lung damage as well as alleviate symptoms. Entest BioMedical was founded for the purpose of providing excellence in biotechnology research (including adult stem cell regenerative treatment). Our objectives go beyond developing single products and procedures. Our mission is to discover and develop new procedures, treatments and medical devices that improve the quality of life. Our efforts revolve around a business focus of developing leading research and technology. Ongoing R&D is paramount to us in developing products and procedures with purpose, products and services that serve the present and help shape the future.
FDA FILING HemaXellerate™
[Regen intends to file an Investigational New Drug (IND) Application in the fourth quarter of 2012 ] patent No. 6,821,513 http://www.prweb.com/releases/2012/10/prweb9972993.htm
HemaXellerate™ offers the possibility of delivering a population of endothelial cells to restore blood production in patients with hematological conditions. "Unlike current approaches of administering pharmaceuticals," said J. Christopher Mizer, President of Regen BioPharma, "our strategy is to heal the bone marrow by administering cells that provide the optimum mix of growth factors to stimulate the bone marrow into producing blood cells naturally." Regen has submitted two provisional patent applications covering the use of different sources of endothelial cells to heal damaged bone marrow. These applications cover: (1) placental cells (61/648898 - Acceleration 0f Hematopoietic Reconstitution by Placental Endothelial and Endothelial Progenitor Cells); and (2) fat cells (61/670791 - Treatment of Hematopoietic Disorders).
OPERATIONAL PLAN "STEMCELL INCUBATOR COMPANY" 1.Month 1-2: Assembly of Team. Regen intends to assemble a team of world-class leaders in the spheres of Technology, Intellectual Property assessment, valuation and Clinical development. Regen will seek to compile a team of Physician-Scientists with experience in the area of clinical trials for regenerative medicine/stem cell products, Regulatory experts who have successfully taken products through the FDA and corresponding agencies internationally, and Biotech Entrepreneurs who have track records of excellence in business formation and value optimization. -DONE 2.Month 1-4: In-licensing of Intellectual Property. The Company having already assessed over 20,000 issued patents and having compiled a shortlist of 30 targets; Regen will seek to execute licensing deals on an initial core of 3 technologies. Regen focuses on issued patents that have already passed preclinical studies but are not under clinical development. -DONE 3.Month 3-6: Interaction with Regulatory Agencies. Regen intends to develop data packages for each of the technologies and initiate interaction with Regulatory Agencies such as the FDA for initiation of trials.-DONE (CLINARTIS) 4.Month 6-18: Clinical Implementation. Regen intends to launch clinical trials with world-leading institutions to obtain human safety data and "signal" of therapeutic efficacy. NEXT UP 5.Month 18-24: Exit. It is intended that technologies "incubated" by Regen will be spun off either as separate companies, or sold to Large Pharma companies seeking to enhance their therapeutic pipeline.
6."At present there exists a wealth of intellectual property that is 'collecting dust' in the corridors of Academia. Given the field of regenerative medicine and stem cell therapy is so young, and the business models are fuzzy at best in terms of valuation, we see this space as a unique opportunity for acceleration of clinical development/value optimization," said Bio-Matrix Chairman & CEO David Koos about its Regen BioPharma. "Valuations for stem cell companies that have passed the threshold of clinical safety, with signals of efficacy are astronomical. The $1.8 billion Mesoblast-Cephalon deal, as well as recent financings of private companies with as little as 3 patient data such as Promethera ($31 million) or Allocure with 16 patients ($23 million), is testimony to the extremely high valuations that are characteristic of this space." $$$$$$$ Why Expect BMSN FDA Approval of IND App...
At times, some people fail to realize that within the penny stock world, it’s not all about where you have been as a company… it’s all about where you are going. BMSN appears to be truly going some places in some major ways.
Per the FDA link below, they will review the Investigational New Drug (IND) application filed with the FDA by BMSN (Regen BioPharma a wholly-owned subsidiary of BMSN) and yes, after not having any comments within 30 days after submission (about 24 now remaining), BMSN could move forward with their goal to initiate clinical trials assessing the company's HemaXellerate I™ stem cell drug in patients:
BMSN - STRONG BUY $ STRONG LONG$ TARGET 3,00 US$ +
A Very Likely $1.19 BMSN Fundamental Valuation…
Before I explain how ”logically” BMSN could ”Fundamentally” be worth trading in the $1.19 per share area, I think it fair to first understand some of the key variables that I will use to help me to derive this ”Fundamental Valuation” for BMSN.
Look within the Yahoo link below and you will see that BMSN trades within the Biotechnology Industry that exists within the Healthcare Sector:
Within the Biotechnology Industry, stocks that are fully reporting and file with the SEC have a Net Profit Margin % of 11.90% and a Price to Earnings (P/E) Ratio of 57.80 as indicated within the Yahoo Finance database as confirmed below: http://biz.yahoo.com/p/515conameu.html
Read the post below to fully understand the importance of the P/E Ratio: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
Now consider below that it has been indicated that BMSN is seeking to enter into an $18 billion market for bone marrow stimulating growth factors as indicated below since beginning the development of its first clinical product (HemaXellerate™) which is a cellular drug designed to heal damaged bone marrow: http://www.prweb.com/releases/2012/10/prweb9972993.htm
The question now is… Do you believe that BMSN would be able to achieve at least 1% of that $18 Billion market if they obtain their FDA Letter? The answers is… Yes, no doubt! However, for the purposes of this valuation, I will remain conservative and figure that BMSN would only be able to achieve obtaining only 1% of that $18 Billion market so that investors could understand the magnitude of the true potential that would then exist in BMSN…
1% of $18,000,000,000 = $180,000,000 in Revenues
$180,000,000 x 11.90% Net Profit Margin = $21,420,000 in Net Profit/Income
Per the recent 8-K below, the BMSN Outstanding Shares (OS) is 1,035,911,549 shares: http://www.sec.gov/Archives/edgar/data/1079282/000110262413000003/b...
Now consider the formulas below to derive a “potential” ”Fundamental Valuation” for BMSN:
Net Profit/Income ÷ OS = Earnings Per Share (EPS) EPS x Price to Earnings (P/E) Ratio = Expected Price Per Share
Net Profit/Income ÷ OS = Earnings Per Share (EPS) $21,420,000 Net Profit/Income ÷ 1,035,911,549 OS = .0206 Earnings Per Share (EPS)
EPS x Price to Earnings (P/E) Ratio = Expected Price Per Share .0206 EPS x 57.80 P/E Ratio = $1.19 per share
This means that given the above fundamental variables, the expected price per share could be justified to be trading within the $1.19 per share range for BMSN if BMSN is only able to capture only 1% of its $18 Billion market of which it exists.
If you believe that BMSN would capture still an amount far less than 1% of the $18 Billion market to let’s say maybe ”half” of the 1% of the $18 Billion market, then the expected price per share could be justified trading within the .59 per share range for BMSN.
On the contrary, if you believe that BMSN is going to capture far more than 1% of the $18 Billion market, then for every 1% that you believe it would obtain from the $18 Billion market… then you can ”fundamentally” add $1.19 per share for each 1% of expectation. Example below:
1% of $18 Billion Market = $1.19 per share for BMSN 2% of $18 Billion Market = $2.38 per share for BMSN 3% of $18 Billion Market = $3.57 per share for BMSN 4% of $18 Billion Market = $4.76 per share for BMSN 5% of $18 Billion Market = $5.95 per share for BMSN
And so on… and so on… etc.
With this valuation post, it is like any other valuation post that I have made in that it will not be up to what I post or say in order for these price levels to be achieved. It will be up to the company to deliver the ”substance” that we all here are expecting to be the stimulus for such to transpire. Here with BMSN, that primary substance that should act as the stimulus would be the FDA Letter. If BMSN delivers the FDA Letter to the public, then it is very possible that any of the valuations above by themselves or combined could happen.
Please, do not use or consider this post to be the gospel for where BMSN is going. Use it as a framework to have to understand where BMSN could very well go ”just-in-case” BMSN deliver the goods.
Before closing, there is something else very important to note… BMSN trades on the OTCQB. This means that they are fully reporting and file their financials with the SEC. This also means that they have ”audited” financials already acclimated with its existence.
BMSN SEC Filings: http://finance.yahoo.com/q/sec?s=BMSN+SEC+Filings
Bottom line, obtaining the FDA Letter is key, but of course it will also be important for BMSN to remain current and qualified on the OTCQB venture marketplace too. This means that BMSN is very legit and very transparent. The more investors learn of BMSN and its potential, the more significant growth that will be achieved for BMSN.
With BMSN, there are the following key things that investors are expecting to continue the move northward…
1**Filing of 10Q/K 2**Pending FDA IND Application News 3**Research & Safety Data News 4**Phase I & II Clinical Trial Update News 5**Merger News to bring even more valuation
BMSN Website: http://www.bmsn.us/
This certainly is worth taking a shot at. The 20-day moving average vs. price makes me think this is a pretty strong buy. I'm betting we'll see pull back a bit more over the next day or so, but when the volume goes quiet after the dip, it may be a good time to jump in. As for your profit margin calculations, I just can't get behind that. With these penny stocks, it's impossible to tell. It seems like if a butterfly farts, it could push the stock one way or another.
BMSN at The Ney York Times
Wednesday, February 13, 2013
STRONG BULLISH $$$$$