Q&A: Is BIEL still worth it?
Biomed Report
Written by Vinny Cassano
Friday, 30 October 2009 03:24
Contributing columnists Vinny Cassano and Peter Depalma respond to a comment about BioElectronics (OTC:BIEL).
BioElectronics Corporation
0.07 +0.00 (+2.86%)
Intraday | 3 Month | 6 Month | 1 Year
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A comment from Shep regarding BioElectronics Corporation:
...says the anonymous poster w/ nothing verifiable to back up the statement. Umm-hmm.
Still loading up on BIEL. A little browsing led me to a story where one of the company top dogs states they are getting ready to move from the trial and development phase to more of a marketing phase. More ads, product recognition; that kind of thing. Coupled with impending FDA approvals (which as far as I can tell are nearly a done deal) and this thing could pop pretty soon. An independent analyst recently projected the company will trade at between .30 and .50 cents w/in 6 mos. (Check InvestorHub for the link). .07 could look like a steal next year. I'm in.
VFC's Take: I like Shep's style, short and to the point; unlike mine, where sometimes I'm long in getting to the point.
As far as BIEL is concerned, I'm with Shep. I'm not here for today's or tomorrow's gains. By this time next year - barring any unexpected setbacks - I think BIEL for 8 cents is going to look a steal that investors look back on and say, "Why didn't I buy?"
BioElectronics is slowly moving from 'Idea' phase to 'reality' phase, and I do believe that as Acetaminophin moves out, ActiPatch has a good opportunity to move in. I'm accumulating while this stock is below seven cents.
Peter's Take: The problem with BIEL is that it is a momentum play with lots of potential that has become somewhat of a joke. Instead of "investing," which is what people did when the stock traded from under a penny to over a dime, people have started "playing the pops" and any time company has good news you'll see it rise, but not stay at the new level any longer than a few hours- if that.
It doesn't help that some of the stocks' cheerleaders are cyber-casting to investors when these pops are coming and even telling people what they plan to do with their shares when good news comes. That's not investing and it's certainly not reassuring. Frankly, it's no better than pumping and dumping and that's really the crux of the problem here. People are having trouble trusting that this is a real company worth putting their money into long term.
Perception is reality in the market and as long as people perceive that this is not a serious company, the stock will keep losing any gains it makes on good news within a day. They started out with a great plan, even had some good media coverage early on, but now they've become just another momentum play. The fact that the technology was a finalist for the Wall Street Journal Innovations Award is fantastic, but until other media outlets start to recognize it, it's going to keep suffering at the lack of what I call "street cred."
The stock would already at fifteen plus cents per share as they await the first of several FDA approvals that are in the works, but people are scared to hold on to the volatile shares fearing that they'll become bag holders.
I love the product, hate the investor education strategy. Still, I do agree with Vinny that some time down the not too distant road, people will regret not investing and holding. For now, I've taken my profits and am waiting on the sidelines for the less educated day traders and rats to lose interest and jump ship.
Disclosure: Vinny Cassano is Long BIEL
