Replies to post #330173 on Bioelectronics Corp (BIEL)

[toohot]

Enormous write off that positions a buyout for the right buyer. I world prefer to see some quality quarters first of course.
Happy Father’s Day you guys!



BUY $BIEL$

[Lifetime]

Taxes losses as a bonus and bidding war in the same post…. Good grief go take a damn business class at the local community college.

[misanthrope]

I guess we will find out who in their right mind would want to buy them.

Why would another company purchase BIEL at this juncture? It appears BIEL's rights to the patents have expired - so no intellectual property is in play. There are legal restrictions around the amounts and timing of NOL carryforwards for the buyer. There isn't a huge or hugely successful distribution network in place. There isn't a highly successful management staff in place, and if there were, they could be hired away without the need to purchase the entire firm. This isn't a profitable company, so there is no incentive to buy BIEL out for that reason.

The No Pain Act? Refer back to the patent expiration - any firm interested in the technology could duplicate or even improve the product on its own without the need to throw money at BIEL. There are just no compelling reasons for a single company to purchase BIEL, much less incentive for a bidding war. The entire idea is a pipe dream.

Toss all that aside, though, and consider what price BIEL would command for a buyout and ask at what price BIEL shares might be bought in totality. The stock is churning between .0001/.0002. Do you think it could be had for .0003? .0004? Certainly it wouldn't command anything more, would it? At .0004, that is either four times or twice the current PPS, depending on the day. How many shareholders would be making bank at .0004? Would KW accept that price?

The hope for help from the No Pain act isn't going to come from an acquisition. Instead, it will have to come in the form of BIEL's current team leveraging that act to move product. That is possible, of course, but this is roughly the same ownership that has inked numerous world-wide distribution agreements over the years, with one profitable quarter (thanks to the stimulus package write-off) and a share price sitting at the bottom of the heap to show for its efforts.

We are quickly approaching the two-year anniversary of the Synergy deal announcement and its projected 975,000 unit placement. It's clear there was no 'guarantee' around the number of units (and to be fair to Nalepka, he didn't say there was a guarantee during the Synergy call - what he said, in effect, was that they anticipated fulfilling the deal would require 975,000 units). All we really know is that based on reported sales, if the deal produced anything, that anything was far short of expectations.

What is left is slow sales, mounting losses, annual financials only, and a few PR's and ongoing product effectiveness studies. Those last two items are positive; management continues to attempt to move this along; but as far as acquisition goes, there isn't anything to support that possibility becoming reality, at the very least in an amount that would benefit shareholders to any great degree.

Like most sub-penny stocks, solid news could change things - but a great deal of momentum gets eaten by profit takers when that happens, especially if the news is not followed by significant sale increase (refer to Synergy). Barring solid news and significant sales growth, the ongoing future for BIEL is just more churn, and waiting for help from the No Pain act.