Dov Pharmaceuticals fka DOVP

[John266]

DOVP POTENTIAL 100 BAGGER:

Saturday, December 16, 2006
Make New Friends, Keep the Old: BBA & DOVP.PK
One is silver: DOVP.PK above 22 cents, and the other is gold: BBA above 1.26

Dear Successful Investor

With holiday season upon us, it is time to quietly count our blessings, learn from our mistakes and look to the brighter future.

As a recent post on all our ideas found, we were blessed with only one idea that did not perform.

The one that got away was DOV Pharmaceutical, DOVP, a microcap stock selling for 10 million dollars, but worth a whole lot more.

We bought DOVP at a deeply discounted value of 64 cents and it promptly went down to 22 cents. Most people gave up. The business did not change.

We recently reviewed reasons for buying DOVP and still find them sound.

The company has good investor sponsorship with deep pockets. DOVP traded as high as $21.49 last year before losing 97% of its price reporting statistically insignificant clinical trials for radiating leg pain reported in August.

Trading under a dollar, DOVP was delisted from NASDAQ to the pink sheets, DOVP.PK, where it has become an obscure stock. DOV Pharmaceutical went through a management change.

DOVP.PK is still a promising drug research and development company, with no earnings, smaller losses, a low current asset to liability ratio, trading at 36 cents.

DOVP.PK has potential blockbuster market patents in Central Nervous System disorders. with fewer side effects and more efficacy than existing drugs.

Some of the potential applications of DOV Pharmaceuticals include:

Alcohol abuse
Analgesia
Angina
Anti-convulsants
Anxiety
Attention Deficit Disorder
Cardiovascular
Depression
Hypertension
Insomnia
Lower Back Pain
Muscle relaxants
Obesity
Osteoarthritis
Post-surgical Pain
While these drugs are in clinical phase testing, DOVP.PK, engaged in cost-cutting by new CEO Barbara Duncan, has $1.77 a share cash.

DOV Pharmaceutical may still eventually have to go to the well to issue more equity for working capital. She has good smart rich shareholders.

Meanwhile, the CEO acquired a lot of DOV Pharmaceutical stock for herself. She also engaged investment banker Hong Kong Shanghai Bank to review their business plan options.

Recently, on 7 December 2006, DOVP.PK announced that Merck had given up on DOV Patents as a business decision after the poor clinical trial results on radiating leg pain reported this summer. Curiously, DOVP.PK stock went up. A week later we found out why. DOV Pharm announced better patent royalty agreements with Wyeth.

When you have a portfolio of patents, you have lots of options. We like the idea of buying $1.77 a share of cash for 36 cents or less. So do the Insiders, who are buying. We would not be surprised to see high risk high return DOVP.PK a ten-bagger short-term, and a hundred bagger long-term.

http://www.dovpharm.com/