Stock recommendation: Senetek PLC (sntky.ob)
We believe this stock is great buy at this very low price, and has lots of potential for a large upwards move in stock price in the range $3-10 in 2010 (250%-700%)
Senetek Fact Sheet
This is a very undervalued stock which has been living a quiet life on Nasdaq.
As of today (1. November 2009) it is priced at 1.3, which is less than the book value of the company!
Senetek has $12 million in cash and no debt! With about 8.5 million shares, it gives a P/B ratio of 12/8.5=1.41
Senetek PLC has a very valuable product and patent portfolio, from which it could gain hugh rises in profits over the next 1-5 years.
The company operates in two segments,
Skincare and Pharmaceutical:
Skincare
The Skincare segment offers Pyratine-6, a second generation cytokinin for the treatment of aging skin;
Pyratine XR for the visible signs and symptoms associated with various conditions, such as rosacea, eczema, contact dermatitis, and menopause;
(These have already been launched in 2009)
4HBAP, an aromatic cytokinin for the treatment of photodamaged skin and its effect on the reduction of erythema; and
(To marked in 1Q 2010)
Kinetin, a first generation cytokinin that is a plant growth factor, which retards senescence of plants and delays age-related changes in cultured human skin cells.
(Sold rights to Kinetin to VALEANT PHARMA which has had a hugh succes with it in the product line Kinerase)
Pharmaceutical:
The Pharmaceutical segment offers Invicorp, an intracavernous injection therapy for the treatment of male erectile dysfunction;
In has been approve for sale in Denmark, and partly in the UK. Pending PDA approval in US
Reliaject, an autoinjector system; and diagnostic monoclonal antibodies that are used in Alzheimer’s and other disease research.
Research
The company has research and collaboration agreements with the Institute of Experimental Botany in Prague, the Czech Republic for the research on plant physiology, genetics, and biotechnology;
Institute of Bioorganic Chemistry of the Polish Academy of Sciences in Poznan, Poland for the rights to three compounds for the treatment of skin aging, and technology used for the treatment of brain tumors using interference RNA; and PROTEOMAGE, the European integrated project on healthy aging.
It operates primarily in the United States, the United Kingdom, and Denmark. Senetek PLC was founded in 1983 and is headquartered in Napa, California.
Why is Senetek a great buy?
No matter which if the strategies below Senetek chooses in 2009 - 2010, it will push the price of the stock to a much higher level:
* It keeps it independency and let its sales grow organically. (likelihood 25%) (slower but steady rise in the share price in 2010, price $2-5 )
* It may sell of the Invicorp and Reliaject products and focus on the skincare sales, (likelihood 25%) (jump in price, and then slower but steady rise in the share price in 2010, a jump to $3-4 then move steadily to $6-7)
* May want merge, be bought by a larger skin-care company to better utilize sales channels, marketing etc. (likelihood 50%)(Large jump in price, $6-10)
and
* It has a shareholder approved share buy-back plan put in to place, which may start at any time.
* Senetek will move listing to a larger exchange in the future, this alone will boost the stock price
* The CEO has a large amount of shares and options and has very strong incentives to move the stock price to a much higher level
