Pressured by recent sales of shares by investors under SEC Rule 144, BioForce Nanosciences Holdings, Inc. (BFNH.OB) shares are now trading at 82% below their 52-week high of $5.00 set just three months ago.
RedChip believes that the current weakness in share price offers a compelling investment opportunity for those seeking exposure to micro-cap nanotechnology equities.
RedChip expects the Company to deliver more than 500% revenue growth in FY 2007 while simultaneously expanding gross margin by approximately 14%. These strengthening financial results should serve to validate the commercial viability of the Company’s nanotechnology platform and ease any lingering investor concerns over recent selling pressure on the shares.
RedChip’s twelve month price target of $1.79 (nearly 100% above current levels) affords BFNH a P/S multiple of 5.0x our FY 2008 revenue estimate of $8.6 million, inline with a basket of comparable nanotech peers.
BioForce Nanosciences Holdings, Inc. (OTCBB:BFNH – News) is a developer of nanotechnology instruments, consumables, and applications for the life sciences industry. The Nano eNabler system is a molecular printer that rapidly and precisely delivers liquids to surfaces such as silicon chips in droplets that are ten billion times smaller than a drop of blood. It is through our instrumentation success that BioForce can pursue applications. The patented virus detection chip embodied in the ViriChip(TM) platform is one such application. The ViriChip technology is sensitive and specific enough to detect a variety of different pathogens.
Let us hear your thoughts below:
