After catching EKG's run from the teens to the 40's and witnessing the great run on SBS today, it is obvious the biotech/pharma stocks are the place to be, much like how INT sparked huge gains in SCG, FSW, ISD, DIL and others last year. Biotech stocks are not really my area of expertise so I want to compile the ultimate biotech list with everyone's choices for stocks on the TSX or Venture Exchanges with an eye towards the next huge gainer. I am inviting you to post your picks in the comments section below and if they spark my interest I will look into buying and I'm sure others who see this will too. By the number of people who have posted on popular biotech message boards on Stockhouse I'm sure they will jump at the chance to promote their picks here.
What I am looking for is the company name and symbol, number of shares currently outstanding as well as any warrants or options and their strike prices to assess their dilutive potential. Write a paragraph or two that will convince me and others that your pick has the possibility of being a huge mover in the near term and provide the latest financial information. I will go first to set an example for what I am looking for as well as to be the first one to pump my pick.
MKI - The Medipattern Corporation. 57.4M shares outstanding. About 3M in stock options outstanding with 2M of those being exercisable at less than 50 cents.
Financial situation - According to the latest financials ended Sept 30th, the company has $2.3M in cash, 400K of other short term assets, 300K in short term liabilities and $6.7M in convertible debt that leads to $4M in shareholder's equity deficiency. The burn rate averages about $500-$600K a quarter and revenue has not been significant.
Reasons to buy MKI - Last year the FDA approval of their product Visualize:Vascular™, 3D imaging software used to help physicians assess vascular disease sent the stock from 5.5 cents to as high as 84 cents in two days. It has since pulled back to around 20 cents. In the meantime the company has commercialised their product and has installed their equipment in 6 hospitals as of December. Revenues are expected to increase drastically, slowing the burn rate. I expect the $2M+ in working capital to be enough until they turn a profit. The company also has a working relationship with General Electric's Healthcare division, leaving the door open to the possibility of a buyout from that company to get a hold of their technology.
Near term potential movers - Quarterly financial updates are due at the end of the month. We might see revenue from those 6 hospitals although not much since they got running late in the quarter. An announcement of sales to more hospitals could be made. If GE Healthcare or another health care company like what they see from MKI's current 6 users, they could offer a takeover bid.
This is the level of analysis I am looking for. Thank you for adding your picks and good luck with them.