Bioelectronics Corp (BIEL)

[fletch97]

Just sharing from VFC's blog.....
http://vfcsstockhouse.com/


BioElectronics (BIEL): In the News, Talk of a Buyout?

It's been a slow go of it for BioElectronics Corp so far in 2011, as the company awaits news from the FDA regarding over-the-counter (OTC) clearances for the ActiPatch and Allay, but a local news article from the Maryland Gazette has created some buzz among the BIEL investment community because it's the relatively first time that the CEO of BioElectronics, Andrew Whelan, has indicated that there's been some - although it may not seem like much - buyout interest in the company.

The quote of interest by Mr. Whelan, "I'll sell the company when I get an obscene offer, and so far the offers we've received have been nowhere near obscene," indicates that there have been offers for the company thus far, but obviously for terms not near the value that Whelan feels accurately appreciates the potential of the products - especially once/if OTC clearance is given.

It could be safe to assume that investors would agree with the CEO in terms of current and future value of the company, although without knowing the terms that were offered - and by who - it's to ascertain that for sure.

The article in the Gazette spoke of BIEL's international presence, although thus far the sales numbers are not there to support the claims of that robust presence; especially since the quarterly numbers used in the report were for the third quarter of 2010 - not exactly a stellar quarter by any means since UK and Canadian ramp-ups in distribution were in the earlier stages.

Fourth quarter 2010 results should be due out any time now, and that will provide more accurate insight as to whether the positive speak from the company will be backed up by numbers.

The most recent investor update on the BielCorp website offered little real updates, it mostly just re-hashed recently released news. The key here, however, is the progress with the FDA.

If the international growth truly is increasing at the pace indicated by the CEO over the past few months, then there's a good chance that the revenue generated by sales could eat away at the quarterly loss numbers as we wait for any news from the FDA, but any disappointments on either front won't do Scarsdale or Whelan any favors in terms of attracting new investors or marketing partners.

BIEL is a nice speculative play with products that offer an intriguing alternative to the sub-par side effect profiles of established brands, but it's going to take approval news from the FDA or very significant sales numbers from the other side of the pond to significantly move this stock, at least for the time being.

As for the Maryland Gazette article, it was a nice mention, but you have to wonder why they didn't wait until the fourth quarter numbers were out before going to press with that one; the picture they painted for BIEL wasn't too impressive, but hey, if declining year-over-year numbers is what they want to trump as a success in Maryland, then so be it.

The real-time health and success of this company will be judged more accurately by the pending quarterly release.

And hey, what ever happened to the move to the OTCBB from the pinks?

Looking for increased legitimacy? That's a good place to start.

Disclosure: Long BIEL.