Updated - Individual Opinion Report for Bionic Products, Inc. (BNPD.PK)
Date: Jan 5, 2010
Previous opinion date: October 2nd, 2009
Writer’s current opinion ranking for BNPD.PK: SPECULATIVE HOLD
Recent positives:
Nothing significant
Recent negatives:
Volume action clustered at the lower end of historical range.
No press release or validated information flow for months.
General commentary:
The company is considered a Speculative HOLD at share prices below $0.0006 and a Speculative BUY below $0.0003/share based on an assumed ‘effective’ number outstanding shares = assumed total authorized of 2,500,000,000 shares.
The company’s previous progress has been countered by what appears to be limited product acceptance, suggestive of stifled growth. The extending negative draft created by an information vacuum leads the stock into the purely speculative arena.
The appearance is the business plans have not been met. Active retail outlets appear sparse and are certainly off the original business plan. The company’s Madagascar endeavor remains a possible seed to sustainability. Madagascar is known as an international melting pot that can produce interesting business results. However, no confirmed product shipments to Madagascar, or plans for, have been disclosed.
An extended meager life is not anticipated. It is reasonable to assume the direction of Bionic Products will be compelled within the next few years. If the news blackout continues for an extend period, the possibility of company change through a reverse merger may be more likely. Should that occur, it would suggest failure of adequate execution of the original concept and could result in significant further dilution.
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 at a Speculative HOLD based on the January 4th 2010 closing price of $0.0003/share. This is a result of limited evidence of follow through on most recent PRs and the severe lack of information over the last 6 months. Value ranges and rank windows have significantly narrowed from the previous opinion date. As long as the news blackout continues, the stock is only viewed as a buy in the price ranges at or below $0.0002/share. Without further news, such a buy would be considered purely speculative (not based on belief in company operating results or product viability) warranting considerations of sell trades if a reasonable profit was presented. It is the writer’s opinion that growth Bionic Tonic product line revenues cannot be assumed until a positive news release indicating such, or viable company redirection is made.
Current opinion of speculative buy/hold/sell rankings are:
$0.00001-$0.00009 Speculative Strong Buy
$0.0001-$0.0002 Speculative Buy
$0.0003-$0.0005 Speculative Hold
$0.0006-$0.0009 Speculative Sell
$0.0010-$0.002 Speculative Strong Sell
The positive remains that this company does or did 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.
An intrinsic positive history for this company remains for the period of 2008 through mid-2009. The sudden lack of continuing information flow and long length of such a drought is the primary confidence reducer for the stock outlook.
Should rumors of positive activity in Madagascar and/or trials in the western states or elsewhere become validated, a buy/sell/hold window ranking revision would likely be appropriate.
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.
