In this report we want to highlight a little dollar stock that is causing quite a buzz over an upcoming 'new market' opening.
The stock: Neostem, Inc. Common Stock(AMEX: NBS)
The news:
New Adult Stem Cell Collection Center in Austin to Open April 15, 2010 and Begin CollectionsPR Newswire(Mon 8:00am)
Excerpt: announced the launch of the newest adult stem cell collection center in its network to open in Austin, TX on April 15, 2010. As announced on February 9, 2010, the Company expanded its collection network into the southwestern region of the U.S. with the addition of the physician group at Westlake Orthopaedics Spine & Sports ("Westlake") located at 5656 Bees Cave Road, k -200 Austin, Texas. NeoStem remains on track to have ten centers in its collection network by the end of 2010.
CEO: "We continue to pursue the development of applications of autologous (one's own) adult stem cells to help in regenerating and repairing damaged cells in the body. The use of autologous stem cells for applications such as wound healing and bone reconstruction removes concerns about immune rejection and is faster and safer than using alleogenic (someone else's) cells."
In addition to the news, this very bullish report followed into the morning.
(see excerpt below that expanded on)
We made mention at www.greenbackers.com in a prior newsletter on the stock at 1.90 in the midst of today's runup on the news. Following it ramped further to 2.09.
| 2.01 | 0.36 | 21.82% | 1,530,151 | Last Trade as of 1:47 PM ET 4/13/10 |
The stock saw additional good news last week as well:
NeoStem's Suzhou Erye Pharmaceutical Subsidiary Receives Approval to Manufacture Generic CloxacillinPR Newswire(Mon, Apr 5)
Excerpt: received approval from the State Food and Drug Administration (SFDA) in China to manufacture the sterile active pharmaceutical ingredient (API) of the anti-infective cloxacillin sodium. Cloxacillin sodium, a generic form Cloxapen, in finished dosage form is listed in China's National Medical Reimbursement Insurance List and thus is eligible for reimbursement by the government's healthcare programs.
NeoStem's Chairman and CEO, Robin Smith, commented, "Cloxacillin sodium is the second of seven drugs in Erye's pipeline to be approved since the acquisition of our 51% interest in Erye and is an important addition to the company's product offerings.
Regarding Financial stats, the revenue growth is a real eye catcher!
| Income Statement (source: yahoo) | |
| Revenue (ttm): | 11.57M |
| Revenue Per Share (ttm): | 0.888 |
| Qtrly Revenue Growth (yoy): | 33380.30% |
Additional, trades at 3x book. Nothing great, but respectable.
| Book Value Per Share (mrq): | 0.667 |
Somewhat impressed with the float ratio:
| Shares Outstanding5: | 43.95M |
| Float: | 23.46M |
Recent Insider purchases really suggest insider confidence (read about this in the reasons to believe in NBS rpt above)
| Insider Purchases - Last 6 Months | |||
| Shares | Trans | ||
| Purchases | 11,536,500 | 4 | |
| Sales | 137,728 | 1 | |
Yahoo thread of interest:
At 2x revs, NBS is worth $4.00, easy
by remingtond... [8 minutes ago]
by remingtond... [8 minutes ago]
This thread too:Biomedreports.com great piece on NBS
by tileit47 [13-Apr-10 10:39 am]
by tileit47 [13-Apr-10 10:39 am]
Excerpt on the the thread: The acquisition of Eyre has completely re-shaped the company and investors have barely noticed. After having owned only 2 months of Suzhou Erye’, the company reported over 11m dollars in revenues for 2009. Year end financials support Suzhou Erye’s growth and Revenues for 2010 should be over 80 million dollars and potentially higher with acceleration of the relocation to the new plant which should double their capacity.
Additionally, the company expects to see a number of new license deals from the U.S. to sell in China. This is a significant development and it will mean big profits without big investments. In additon, the fact that a trusted American company can guide other American companies through the "license to China" process in order to get their products into the hands of consumers there will be a major step which can be repeated time and again by Neostem. As I've said before, when NBS acquired the Chinese pharmaceutical operation, they- in essence- created their own printing press for new money.
Bottom Line: Dispite today's gains, still think this stock will extend on anticipation building into the grand opening of a center that will likely grow quickly, given among first to market.
We will be targeting 2.20 / 10% by week end. Stop loss at 1.80
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