Amarantus Bioscience Holdings Inc (AMBS)

[r00kie]

Initiating Coverage Of Amarantus - Credibility vs. Perception
By Jason Napodano, CFA

Today, I am initiating coverage of Amarantus BioScience Holdings, Inc. (AMBS.OB) with a 'Neutral' rating and $0.25 price target. Yes, a 'Neutral' rating. Neutral based primarily on the risk inherent in investing in any stock trading at this low in price. Neutral despite what I see as a story that is meaningfully undervalued based on my review of the science around the company's two core assets, the therapeutic agent MANF and the Alzheimer's diagnostic kit LymPro. Neutral despite a management that has worked tirelessly over the past several months to clean up the balance sheet, remove debt, bring in and validated new assets, expand the executive talent, settle all outstanding lawsuits, shoulder accountability, and put the company on a path for creating significant shareholder value. And neutral despite a price target of $0.25 that clearly points to massive upside in the shares.

...A Little Credibility Goes A Long Way...

It is clear to me that there is significant opportunity in the shares, and the current price of $0.04 – a market capitalization of around $16 million – vastly under-appreciates this potential. I originally became attracted to the story because of MANF for Parkinson’s disease, but now believe orphan indications around ischemic brain damage present more meaningful and near-term upside to the story. Likewise, I believe that LymPro could be a game-changing in the Alzheimer’s diagnostic market.

http://bionapcfa.blogspot.ca/2013/05/initiating-coverage-of-amarantus.html