Value Microcaps Motherboard

[2morrowsGains]

BSPM...Another Chinese stock that may be worth looking into, (mentioned by hweb2 last week, thanks hweb) is BSPM...

- Diluted Q2 EPS of $0.16 with what looks to be nice growth in the pipeline.
- New IR group.
- New Auditing firm.
- Low forward PE (4.4).

- DSO is high at 134 for six months ended 6/30/09, but cash & equiv is up quite a bit QoQ. Also, "For the first six months of 2009, the Company generated approximately $1.2 million in cash from operations versus approximately $1.7 million use in operations for the same period in 2008, with the variance principally coming from the increase in net income.

- No dilution (that I can find)...
From the 10Q...
"As of March 24, 2009, we had 23,240,899 outstanding shares of common stock. Because none of the beneficial owners listed in the table holds any option, warrant or other right to acquire any shares of our common within 60 days of the date of this prospectus, the calculation of percentage of class held by each owner does not include any such shares."

- NOT highly dependent one one customer...
Note 8 – MAJOR CUSTOMER
Approximately 6% of net sales were made to one customer for the year ended December 31, 2008 and 12% of net sales were made to one customer for the year ended December 31, 2007.

- Nice outlook in Biostar's Q2 earnings PR...

Business Development

During the second quarter of 2009, Biostar finished the engineering design and commenced construction for its new raw material processing facility expected to be operational during the fourth quarter of 2009. The raw material processing facility is part of the Company's herbal plantation base. The plantation base will be utilized to service Biostar's own raw material demand ensuring the Company's product quality, lowering its overall production costs and providing incremental revenue by selling excess raw materials into the market.

During the second quarter of 2009, Biostar commenced the full implementation of the new rural cooperative medical drug supply network plan. In April, Biostar deployed over 30 salesmen to set up a network covering approximately 1,320 sales outlets in the rural areas of 10 counties located throughout the Shaanxi province. This is the initial phase of Biostar's two-year plan to build a rural supply network covering 10,000 sales outlets throughout six provinces. The goal is to build the largest regional pharmaceutical supply network in rural areas of the PRC in order to capitalize on the growth opportunity driven by an increase in disposable income of farmers and government's significant capital commitment to rural communities throughout the PRC.

Biostar received approval from the local government to produce Yizi Capsules, Tangning Capsules, and Shengjing Capsules. The Company has launched these products through its domestic market channels and initial revenues have been generated by late July, 2009.

"We are making progress on all aspects of our business. From commencing construction for our new raw material processing facility, to establishing 1,320 rural sales outlets, to receiving three new product approvals which further diversifies our portfolio, we have set the foundation for long-term growth and profitability in our business. We remain focused on introducing higher margin products and building brand value which will enable us to achieve further market share gains," concluded Mr. Wang.
http://finance.yahoo.com/news/Biostar-Pharmaceuticals-Inc-prnews-3257545683.html?x=0&.v=1

Current stock price = $2.8.