Bioelectronics Corp (BIEL)

[TruthBeSaid]

Performance over the last couple of years:

I am posting charts showing the recent trailing twelve months (TTM) performance.



As you can see the numbers doing the right thing - those that should go up are going up and those that should go down are going down.

For a company starting to get its foothold, quarterly performance can be erratic, depending on how their sales contracts are arranged and when payments are made and revenue recognized. The TTM performance is a much better indicator of trends. With this in mind, one can see

(1) revenue growth - revenue has tripled since 2014 Q3

(2) gross profit growth - gross profit has quintupled since 2014 Q3.

(3) losses leveled off and have dropped by 20% in the last 2 quarters, from the peak.

These are good signs.

The revenue seems to have also leveled off (although it is probably too early to say) but the gross profit has not. This can be because they are selling more to the retailers but at a lower price than before (larger orders). Larger orders also mean lower per unit CoG (as seen) and improving margins (as seen), thus allowing gross profit growth. With the addition of more retailers in 2015Q4-2016Q1 lower selling prices to retailers is unlikely to continue as there is no retailer monopoly (Bielcorp is in a better negotiating position). The next two quarters should make the picture a lot clearer, especially given the recent wider publicity (Daily Mail) and thus widened consumer access. Add to that pending NHS news, lower dilution due to lower losses and SEC action, things are looking good.