Welcome diego,
This should be an exciting year for grifco. When you get more time, you should investigate Vphm. After q2 earnings are reported might be a good time for you to buy. There will be a large non cash expense charged to the P&L in q2. It is part of the financing. If the stock price goes down at that time, it would be a good time to buy. Vphm is safer than either nwau or gfci because they are already fully reporting and listed on nasdaq.
The noncash expense is caused by the convertible financing deal. The CFO is trying to pay that debt off as soon as possible so that there won't be any future charges but he is limited to paying it off at 18.75 million per qtr so it will probably be q4 before it is paid in full. However the actual business is going great. Their one drug, Vancocin is the preferred treatment for an intestinal infection that causes severe diarrhea in older patients that are immune suppressed. They can die from this so it is serious. Previously they were treated with a generic medicine and then if they didn't respond, the doctor would prescribe Vancocin.
Here is the official description:
Vancocin(r) Pulvules(r), approved for oral administration for treatment of antibiotic-associated pseudomembranous colitis caused by Clostridium difficile and enterocolitis caused by Staphylococcus aureus, including methicillin-resistant strains.
Now with the more deadly strain, they don't have time to do this. By the time they figure out it's not working, it may be too late. So more doctors are prescribing Vancocin. The incidence of C.difficile is also up in hospitals. Americans are getting old!!! So more cases are likely.
This is increasing prescriptions and the company raised prices 23% in April. That will show up in q2 numbers. I expect revenues from drug sales to be up but expect net profits to be down from q1. Probably around .10eps instead of .36eps in q1. However q2 should bounce back and the company should earn about .60 to .75 for 2005. Biotech/pharmas normally carry a high p/e in the US. If they give Vphm a 20p/e for .70 eps, that is a $14 stock or double current price.
Good luck, Bobwins
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