BioNeutral Group Inc. (fka BONU)

[mave_rick]

Do You Want a Fresh Perspective From a New BONU Investor


Let Me Start by Thanking Posters Stervc, Marquee, Sharky, Deximus and others who have been Loyal BONU Shareholders and here a lot longer than me and for their Excellent DD that helped me make a Decision to Buy BONU.

Disclaimer: I have only taken a Starter Position Of 7.4 Million Shares on Friday at a PPS of .0011 and Hope to ADD and ACCUMULATE More If Possible and Pertinent Depending on PPS Levels and other relevant and Pertinent Factors.

The First Thing I look at is the Upper Level Management In terms of Character, Communication, Credibility, Visibility, and Most Importantly EXECUTION In terms of Revenues Bottom Line.

After Studying the Filings and DD on this Board, I see that the Management has been Forthright and Honest.

Is the Company Real Or a Shell Company with No Products? We find the Company Is REAL and Credible and A VIABLE Going Concern. The Management Is Real and Honest and Forthright in their Communication with the Shareholders. The Products are Real and Unique and Getting Great Reviews and Customer Testimonials.

Does BONU have Sales Already Happening Because of the Direct Marketing and Sales Process that the Company has been Using their resources for? YES they already Have Sales and Revenues Coming into the Company.

Can we Expect More Sales To Come In as We end 2013 and do we know what the Revenues will be in 2013? YES we do Know this Number. The "Lowered" Revenue Forecast Number is $1,120,000. We will see after they Release the Q 4 Numbers and then we will Know Exact 2013 Revenues and Exact Number of Outstanding shares at that time for period ending December 31, 2013.

Can We Expect the Sales Number to Keep Increasing? Yes We Can. As Stated By the Company, " To date our marketing efforts have led to over 100 trials of our products of which 70 are active at the current time. Our products have been ordered within the segments of university laboratory medical research, pharmaceutical manufacturing and veterinarian care. These trials have led to the addition of 20 new customers of our products. The 70 active trials currently in process are pending results for placement of orders."

Read Carefully Marketing Efforts Leads To 100 Trials Which Leads To 70 Currently Active Trials In Process and Pending Results for Placement of Orders And has ALREADY Led to 20 New Customers I Love these Numbers, Don't You?

Now why was the Price in trips and why is it Just Coming Out of trips as we Evidence on the Charts and the Last two days of Trading on December 5th and 6th, 2013, and Why Do we soon expect Straight Green days and a Potentially Huge Upward Adjustment In Prices Per share for BONU? Why are we expecting BONU to clear a Penny and then Move EVEN HIGHER Into 2014?

So here is where I Love that the Company was Straightforward and Honest and Forthright and in so many words said Look we need Money for Sales and Marketing which as you see led to Trials and then New Customers and Orders and Revenues and More revenues to certainly come based on the stated 70 Trials that were still In Process and Progress. You can see that it takes Capital to do the Marketing and then the Trials and there is a "Method to this Madness" In Following along with this Process of Creating CUSTOMERS for HIGH DEMAND EFFECTIVE Products That Lead to a Form Or Residual REVENUES that are Repetitive. This not to mention there will be a Synergistic Effect and Impact In the Target Markets Like Hospitals etc where the Current Trials and New Customers are being Generated. The Future Contracts that will come Potentially will Dwarf the Current 2013 Gross revenue Figure of 1.12 Million. In other words can we Reasonably Expect a banner 2014 as compared to 2013 for BONU? I Believe we Can:):)

Now the Negative Inferences I take away from the previously Announced Dilution is that the Prices Fell as Shareholders Bailed and Sold due to Fear or Impatience and that took the PPS into the land of the Trips. Lets Call that the .0005-.001 Area.

The Positive Inference I take away from the Previously announced Dilution was that First of all All companies Need Capital and BONU as a REAL Company with REAL Products Is no Different. Second, there is Good Dilution and Bad Dilution. BONU had a Needed and Good Dilution and it clearly supported the Bottom Line Revenues as the resources were needed to Generate Increased Customers and Sales For their Unique and Effective Products. Third, I like that the Company was Forthright and Honest about what was needed to be done not in just making the announcement that they needed money BUT also in Honestly reducing the Revenue Forecast for 2013 and Clearly explaining the Reason In their Filing.

Now to see Actual Facts of some of the things I mentioned above Please feel Free to Go to

http://www.sec.gov/Archives/edgar/data/1427030/000121390013005105/f10q0713_bioneutralgroup.htm
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9510639

OR You can see the Sticky DD By Stervc on VALUATION Or You can Read the following for your easy reference from that same DD Sticky

"
http://www.sec.gov/Archives/edgar/data/1427030/000121390013005105/f10q0713_bioneutralgroup.htm
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9510639

Our initial commercialization strategy, which was utilized as a basis for our 2012 impairment testing, contained a forecast that called for material sales to begin to occur in April of 2013. However, primarily due to the lead time involved with the following activities: 1) sales force orientation and training; 2) production of selling materials and 3) a relatively long sales cycle that includes product trial testing, we have lowered our 2013 revenue forecast to $1,120,000. We forecast to make up the difference between our original forecast and our current forecast in calendar years 2014 and 2015, and the effect of our revision is not anticipated to have a significant impact on our valuation. …

AND

" http://www.sec.gov/Archives/edgar/data/1427030/000121390013005105/f10q0713_bioneutralgroup.htm
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9510639

In calendar year 2013 we initiated our commercialization strategy to sell our products into the healthcare and life sciences markets, and also into industrial markets. Within healthcare and life sciences, most of our customer’s perform trial testing of our products prior to purchasing which can significantly lengthen the selling cycle. To date our marketing efforts have led to over 100 trials of our products of which 70 are active at the current time. Our products have been ordered within the segments of university laboratory medical research, pharmaceutical manufacturing and veterinarian care. These trials have led to the addition of 20 new customers of our products. The 70 active trials currently in process are pending results for placement of orders."


The Good News is that On December 5th and 6th, BONU Just Took a Firmer Visible Position on the Break Out Boards. BONU had Above Average Volume Days as Clearly Evidenced on the Charts. BONU seems to Have Decisively Moved OUT of the Trips and Closed at the High of the day at .0014.

Now Let me Point out that Fist, Realistically I cannot tell you if the dilution is now over As of December 6th Friday End of Trading Day or just about over although my Gut Instinct tells me its just about over. Second I cannot Tell the Exact Number of Outstanding shares at this Exact Point In Time But for Calculations I will Use Lets say a Number of Roughly 200 MM for Outstanding shares Which is still Low , although the stated Available Number on Outstanding shares is 164,616,730.

Finally Lets take a Look at Valuation.

Lets First See the Example Stervc gave in his sticky so you can follow along with the Reasonable Logic and Rational Process He uses to get to a Fundamentally Supported Valuation.

"Let’s presume that with their manufacturing agreements in place that there is a 75% Net Expense Margin for 2013 which in-turn will return a 25% Net Income/Profit Margin for BONU for 2013… then see below:

$1,120,000 BONU 2013 Revenues x .25 Net Profit Margin = $280,000 “Potential” Net Income

$280,000 ÷ 164,616,730 (OS) = .0017 “Potential” EPS

(EPS = Earnings Per Share)

Within the link below is confirmation that the Price to Earnings (P/E) Ratio is 19.40 for the Chemicals - Major Diversified Industry which is the Industry of where BONU should exist to trade so we should use such as its growth multiple as indicated below:
biz.yahoo.com/p/110conameu.html

.0017 “Potential” EPS x 19.40 P/E Ratio = .0329 per share “Potential” BONU Valuation"

Please Read His Full Sticky at

investorshub.advfn.com/boards/read_msg.aspx?message_id=93445659


If You use A Shares Outstanding number of 200 MM to be More Conservative for PPS Projections and a More Fundamentally Based VALUATION thats Realistically where BONU Shares are Headed, and a P/E of 19.40 as in the example Stervc Correctly used, and all other Numbers the same as Stervc used in His Fundamental VALUATION Sticky on the Board, Then We come up with a Valuation of .02716 which is roughly 20 times the Current .0013 PPS and thus If EFFECTUATED which , I Believe Is a "Reasonable Expectation", Is A representation of Almost 2000%.


Now Understand that I Point out this Example To show us and Open up all our minds to 2 Important things

1) The Stock Market is Forward Thinking and we would Normally be making PPS projections and Fundamentally Based Valuations Looking at Digesting FUTURE EXPECTATIONS For 2014 Potential Revenue Numbers. But In these Valuations we are Using Expected 2013 Revenues and already Higher number for outstanding shares based on the Already Lowered Forward Guidance Estimate Number of $1,120,000.

2) Looking at the Factual Statements in the company filing and the Numbers I mentioned above where we still have 70 Active Trials going on and Clearly an Expectation of More New Customers and Sales Based on the fact that Resources spent on the Marketing and Sales Process and on Trials ..Already had created 20 New customers from 100 Trials and 70 of the Trials were at said time of Filing still Active, We can Reasonably Expect that the Company is doing things right and Creating New revenues Via New Customers and that 2014 Could Be Markedly Better than 2013.

Please don't Underestimate when the Company says this " we have lowered our 2013 revenue forecast to $1,120,000. We forecast to make up the difference between our original forecast and our current forecast in calendar years 2014 and 2015, and the effect of our revision is not anticipated to have a significant impact on our valuation."

In other Words the Share Price Suffered Yes But The Company is saying that the Valuation will NOT Be Impacted and The Difference will be made up in 2014 and 2015.

So Bottom Line I am trying to Highlight is that I Strongly Believe We Are Grossly Undervalued From the Standpoint that we are Reasonably expecting a Higher Revenue Year in 2014 and 2015 as per the Factual Company Statements, But That Even as we Project the PPS for BONU using Lowered Current Year 2013 Revenue Figures, we see that We are Grossly Under Valued and that as the company for the most part Totally Finishes the financing process via selling shares which seems to be close to the end, The PPS of BONU will see a Quick and Rapid Upward Adjustment In their Shares.

I am not a Price Prognosticator in as Much as TIMING is concerned so I cant tell you EXACTLY when On TIMING But I feel we are Very very Close to a time where that Expected Huge Upwards Price Adjustment is Coming

My Suggestion would be to Take Positions Immediately Based on your Investment Objectives and Risk Tolerance Levels and Continue to ADD at these Prices whenever you are Able.

Hope this helped and I for One am Excited about My Relatively Small Position in BONU of 7.4 MM Shares which I hope to Increase In the coming week starting Monday.

All the Statements in my Post are Personal Opinion ONLY

Do whats Best For You based on your Objectives and Risk Tolerance.

Thanks