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Microcap & Penny Stocks : BPRX Turn around

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To: Michael Joseph Hoban who wrote (130)11/20/1997 2:01:00 AM
From: William Minich   of 197
 
Well the only thing I can guess is the biggest problem with the stock was the last few lackluster earnings reports. There was an increase in sales, yet from an earnings report, they don't seem to be much better off then a year ago...the .14 earnings Q3 '96 was actually from a litigation settlement I believe.

Now this company has been trading for years. Maybe some investors have simply decided that there are other more progressively moving companies in which to invest ? All things considered, based on about the same earnings prior..the stock was trading as low as .60 approximately a year ago, so I'm sure where it will end up. It sure looked good a few weeks ago...

Their earnings have been as follows:

THIS YEAR EPS LAST YEAR EPS % CHANGE
------------- ------------- --------- --------
Q3 97 0.03 Q3 96 0.14 -78.6 -50.3
Q2 97 0.02 Q2 96 0.03 -33.4 -4.6
Q1 97 0.03 Q1 96 0.01 200.0 9.1
Q4 96 0.04 Q4 95 -0.38 N/A 191.7

Maybe they need new management, a new marketing plan ?? Their packaging on many products is unimpressive and old school. They've had plenty of time to make the right moves so I'm not sure why their growth has been pretty moderate in the last few years. Maybe they are happy with the returns and like things the way they are..I'm not sure ?

One thing that would help them a lot would be to simply release public relations information occasionally. If they don't advertise their "great new ventures" nobody will find out and the stock won't move until another earnings report...that's a while away and given their performance last 4th quarter..who know what that will be ? Of course, this communications problem plagues a lot of companies. I've never understood how companies can raise millions of dollars and then fail to have a competent information department keeping the stock moving......press releases are a piece of cake and Comtex will accept them from virtually any publically traded company. I'm not sure they release their earnings to Reuters either ?......they do however have a web site and they do send releases to the shareholders around year end.

I cut my shares last week...the trend started looking bad and I decided to get out. Maybe as we get closer to the next earnings report I will look at them again.

Regardless, good luck with the stock I will be cheering this one on from the sidelines.
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