A number of analysts have issued a strong buy on Pressure Bio-Sciences citing that investors will soon realize the value of the company’s technologies. They have set 12-month price targets significantly higher than the current trading price offering investors the opportunity to profit from this company’s innovative products that could revolutionize the medical world, where it has been well received already.
With its Sales force now in position, they are poised to ramp up demand for their technologies. The company’s main product is its line of Barocycler Instruments. They also receive generous revenue streams from the accompanying Pulse Tubes and ProteoSolve (LRS) kits. Service contacts can be purchased for 10% off the purchase price paid yearly giving another revenue stream. In addition to this they have a number of leasing agreements for the Barocycler and lease revenue is recognized monthly. Another small revenue stream is the company’s Small Business Innovation Research Grant money totaling $31,000 last quarter.
Sales for its products have been steadily increasing as the last quarter recognized $138,052 in revenue for three months, the same period last year showed $92,211. This shows a 49% increase year over year, a testament to the increased Sales coverage and the commercialization of its products. COG is just 40% of most of the products sold and the company seeks to further lower COG through a number of component reengineering initiatives. Cash and Equivalents stands at 6 million ending quarter 3 which the company believes to be enough to support sales and operations through year 2008.
As the larger sales force begins to saturate the market with their marketing campaigns, it is expected that sales will see large growth percentages. The leases are also expected to continue to be a large part of the revenue stream as well as accompanying non-durable products.
This company offers investors the chance to see a prospective 65% gain in share value. As long as the company executes its commercialization plan and its Sales force continues to grow, the 12-month price target of $10 is highly possible and could be even higher depending on how substantial its profits are.
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