Updated - Individual Opinion Report for Bionic Products, Inc. (BNPD.PK)
Date: Oct 2nd , 2009
Previous opinion date: June 20th, 2009
Writer’s current opinion ranking for BNPD.PK: SPECULATIVE BUY
Recent positives:
Nothing significant
Recent negatives:
Volume action clustered at the lower end of historical range.
PRs at a slow pace and of minimal strength
General commentary:
The company is considered a Speculative Buy at share prices below $0.001 based on an assumed ‘effective’ number outstanding shares = assumed total authorized of 2,500,000,000 shares.
While the company appears to have made sufficient progress to suggest a year or two of additional staying power, it is currently experiencing a negative draft created by an information vacuum. Fundamentally there is a vacuum when harboring a non-reporting status, but more recently and potentially more important is the drought of substantially positive press releases. This leads one to postulate that sales assumed by this stage of the business plan are not being met. The number of active retail outlets also appears off the business plan. The company does show some staying power and has shown some nimble creativity, such as with their Madagascar endeavor. Madagascar is an international melting pot that can produce interesting results.
The next few years should tell the story. An extended meager life is not anticipated. It is reasonable to assume the direction of Bionic Products will be compelled within the next 4 years.
It is possible for the stock to rise or fall sharply in share price simply due to the intrinsic speculative nature of the pink sheet market and the levels of incremental price movement. As a result, large price swings remain possible regardless of actual news, progress, insider actions, dilution and/or other company fundamentals.
In the current environment, the writer’s opinion is the stock remains a speculative buy. However, the value ranges and rank windows have narrowed from the previous opinion date:
$0.0001-$0.0002 Speculative Strong Buy
$0.0003-$0.0007 Speculative Buy
$0.0008-$0.002 Speculative Hold
$0.0030-$0.010 Speculative Sell
$0.0110-$0.020 Speculative Strong Sell
Assuming all the current authorized shares were outstanding, at 2.5B shares, a maximum early value of 0.018/share remains estimated using a previous assumption of 45M potential near term capitalization value.
Actualizing this value will depend on the company’s ability to demonstrate minimal growth and sustainable revenues. As always, some unanticipated extraordinary good news could compel even greater gains.
The positive is the company does have a product that is considered good by many. Besides published press release information of taste test satisfactions, the writer has also conducted a variety of non-scientific, but non-biased, taste tests. These were among a few select small groups of energy drink drinkers and non-energy drink drinkers. Results of those tests were previously reported and overwhelming positive.
The negative is that the company appears, anecdotally as result of non-reporting, to be struggling to stabilize and expand sales. The release of the BonicInnoculation product also appears stalled. Basic assistance to distributors appears nil.
An intrinsic positive recent history for this company remains. It was approximately 1 year ago that the milestone of producing the product was achieved. Many small pink sheet start-up companies never achieve this status.
Subsequent to this, although likely not to the extent originally desired, active distributors were made operational. The product is currently available in limited locations in several states and has been shipped to an overseas distributor at least once. A new retailer in California appears to be on the scene as well.
It is believed that news release of significant positive events and/or new production runs is needed to propel the stock forward near term and certainly in the long term. Demonstration of an adequate revenue stream is ultimately required to propel the company and its stock stably forward.
Disclaimer – This is only an opinion of the writer. It is in large part based on anecdotal information and is only representative of a contemporary personal opinion. The writer is not intimately familiar with the specific operations and financial conditions of the company. The writer is also not specifically trained in the area of corporate reviews, equity valuation studies, stock market guidance, or financial advice. The writer owns stock in this company and thus has a pecuniary interest its success. The writer is not a major stockholder and has acquired all shares from the market. Investment in the company is not substantial, in that ranging from a total loss to a many multiple increase in share price, the writer’s financial worth would not be majorly effected. While a major driving force for investing in this company has been an enthusiasm for the product, the writer may consider liquidation of part or all stock holdings in the company at any time. The writer may issue orders to purchase and/or sell shares at any time that the markets and trading systems utilized allow.
