Kraig Biocraft Laboratories Inc (KBLB)

[first mike]

Re: Simple Question concerning a 'Strong Buy'

Would somebody who thinks that a 'Strong Buy' is adequate for KBLB right now please give the reasons / 'facts' for this. I mean why should one buy KBLB right now?

Executive Summary
KBLB has created a novel material that should have a strong market and high profit margins with strong market protection against competitors.
They are presently a "penny stock" but there is ample evidence that they are not a scam and have a very good chance of success.
They are very close to achieving first revenue and are likely to be profitable within one year.
Like any development stage (zero revenue) company there is a reasonable chance of losing your entire investment.
If KBLB succeeds the magnitude of the potential markets suggests a probable multi-billion dollar revenue stream and $billion yearly profit within five years.
Given a P/E ratio of 10, this would predict a share price of roughly $10 in five years (assuming 40% dilution over that time frame).
Since the current PPS of KBLB is under $0.10, this would be a 10,000% increase in value for every dollar invested now.

History and Future
KBLB has been in existence as a public company since 2008.
From the beginning KBLB has had one simple goal, to create a transgenic silkworm that would produce a silk with strength and elasticity similar to spider drag line silk which could be farmed to produce commercial quantities of this very desireable fiber that could not be obtained from spiders directly due to their limitations and could not be produced economically in a chemical reactor based factory.

This was a nice dream, but with a very low chance of success. KBLB started as a penny stock and after 2 years without any successful genetic insertions it was at 0.01, 1 cent, without any good prospects.

The first and most difficult step was to actually splice the spider and silkworm genomes.
Others had tried this in the past and failed.
At least twice, other companies had managed to get the silkworm to express the spider silk gene, but it had not been incorporated properly into the structure of the silk and the silk was therefore no stronger.

On August 24th, 2010 KBLB announced that it would hold a press conference in about a month "for the purpose of announcing laboratory developments. "
This foreshadowed some major development and the stock rose to about 0.03.
On Sept. 7th, 2010 the nature of the development was released - KBLB had succeeded in creating a silk worm that incorporated spider silk genes that were expressed in the silk.
Based upon these announcements KBLB's stock rose to an al time high on 9/27 of 0.264.
On 9/29 a major press conference was held at Notre Dame University confirming the announcement and showing large samples of the transgenic silk.
Over the next year the PPS fluctuated around the 8 to 20 cent levels.
After about 2 years without revenue generation the stock began a long slow slide as investors realized that profitability was Not just around the corner.

Despite several major scientific achievements and business successes, an agreement with Sigma Aldrich for the exclusive use of their tools, the publication of a peer reviewed paper in the proceedings of the National Academy of Sciences, etc. the PPS slid to a low of under 4 cents by late in 2012.

In 2013, news of the immanence of commercialization began to lift the PPS as investors began to see light at the end of the tunnel.
The PPS rose briefly to above 0.13 and has remained in the 7 to 8 cent range for the past 6 months.
KBLB has recently announced that it expects to leave the development stage (achieve first revenues) by the end of 2013, but because profitability has been a long time coming many investors will not believe it until they see it.

When revenue and profitability is finally achieved KBLB's PPS should rise considerably.
If a major partnering announcement is made before revenue generation begins the PPS will be likely to rise considerably.
As announcements are made that raise investor confidence in the likelihood of near future revenue generation the PPS will be likely to rise considerably.

Five Reasons why KBLB is a good investment
1. It is cheap - There is little to gain by investing in a great company already recognized as such by most investors.
2. It is not a scam - UND, UW, Sigma-Aldrich, PNAS, Patents, big name advisors, smart CEO -lots of credentials.
3. It is doing real science / it has a real product - No flying cars or inflatable cars, not based on marketing schemes or exploration for various natural resources on dubious leases, not dependent on style, fashion, fads, or sex appeal.
4. It has a large potential market with strong barriers to competition - patents, licenses, minimum 3 year lead on competitors. - potential for many new products in additional markets.
5. It is the only pure play investment in this field - all the would be competitors are private companies.

My Credentials
I am a retired research scientist in the fields of optoelectronics, communications and information technology, not genetics, genomics, molecular biology, or sericulture or stock market analysis, but I have been following KBLB for five years and in that time have tried to educate myself in all of these with some success.
Disclaimer: I am not a licensed stock market adviser or broker, if I were I could not say any of this.
I have an industrial scientist's knowledge of patents and licenses, and NDAs etc.
I am not a lawyer but I have worked with several good patent attorneys. I have signed and written NDAs.
I have represented my companies and industry at many conferences and UN ITU/UIT etc. standards meetings.
I have acted as an adviser to the Defense Information Services Agency (DISA)
I have been granted several patents and awards in my fields and have worked for several Nobel Laureates.
I am an honest public person. I post under my own true name, not an alias. You can find my papers and patents and awards etc. via Google.
I have no hidden agenda!
I believe in this company both as a financial investment and because I like to support good science.
I will sometimes trade in and (partially) out of this stock, but I have never and will never advise you or anyone to buy while I am selling or sell while I am buying. I have no desire to make money by taking it from some "greater fool".
This is in Stark Contrast to many of the posters on this and other message boards.
I have lived a happy and successful life and continue to enjoy life at 67 down here in The Villages (retirement heaven) when not traveling around the world for fun and entertainment.

Mike Lukacs [e-mail]