Last month VFC's Stock House took a look at 'The Good, The Bad And The Ugly' aspects of Biel Corp, a company long waiting on positive developments from the FDA to re-ignite a run similar to the one a couple of years ago that saw shares of BIEL trade from sub-penny to twelve cents.
Although there's nothing to hit the wires that looks to support a price run to the dime level, speculation that the FDA is nearly set to render a decision on expanded use for BIEL's RecoveryRx product pushed shares to back above the penny level. A follow-up news release to open the new week sparked a rise to two cents, at a time when the market was sinking heavily.
It's been a long-standing opinion of mine that it would take some positive news on the FDA front to ignite another rally in this stock, and the RecoveryRx tease might be enough to garner some additional interest, but with all the speculation that investors will carry over the short term, we can't forget that the FDA still has to seal this deal.
The RecoveryRx decision will not put the company's products on the over-the-counter (OTC) market, but it will provide for expanded use in the post-surgery market where currently BIEL's products can only be used to treat following blepharoplasty (eye surgery).
This company is a classic example of how the FDA takes its sweet time when dealing with little players in large markets, but if CEO Andrew Whelan's comments are to be taken for what they're worth in the recent press releases, then the increased communication and activity between BIEL and the FDA might have put it right back on the map.
While shares have responded positively to the news, it's also best to temper expectations and remember that shares have spiked as such on previous occassions, only to fall back to previously-traded levels. In order for this run to become sustained, in my opinion, then the FDA outcome with RecoveryRx will need to go BIEL's way, and then progress needs to be made on the Actipatch and Allay fronts.
The wild card is always a growth spurt in international sales.
There's been a sales and marketing push into Canada and the UK, but thus far the results have been only luke warm.
If nothing else, this play has become interesting again.
The significant run as chaos ensues in the general market will bring some new eyes to the stock, but attention won't be enough - it's results time for BioElectronics.
And the way it's looking, it could be sooner, rather than later, that some results start going the company's way.
Disclosure: Long BIEL.
