Bargain Hunting Leads Investors to Entest Biomedical, Inc. (PINK:ENTB)
Dogs are a man’s best friend, and lately pet healthcare has employed more and more advanced technologies to give that friend the best chance possible. Now a biotechnology company is riding this trend, offering upcoming vaccine-based cancer therapies for canines, Entest Biomedical, Inc. (PINK:ENTB). The pink sheet is also strangely ambitious to turn its veterinary science discoveries into possible treatments for humans.
But let’s see the financial resources of the company and how it could measure up in creating a working and marketable product:
- $42,737 cash
- $527, 827 total assets, but $405,000 assigned to goodwill
- $549,157 current liabilities
- $419,336 total revenues
- $816, 121 net loss
As we see, the company is mostly debt-funded and its main business seems to be veterinary services. The latest spike in its stock, nearly 70% to $0.007 is part of a trend that started in 2013, lifting up the company from triple zeroes.
Although currently ERBB is not being promoted, its growth is hardly similar to that of better-quality biopharma small cap companies. There were no new promising breakthroughs that could lift the stock, and ERBB is extremely cheap, far behind the healthier tickers that may gain from biomedical research and future expectations.
Instead, ERBB is being touted as a cheap deal, offering a chance for gains on buying the dips. In the past years, ERBB started ahead with a $4.2 stock price, but spent the whole of 2012 trading around a cent. The slump at the end of the year came after the September campaign of Hot Shot Stocks went silent and sent the ticker to triple-zeroes.
The total paid for ERBB promotions is a humble $6,500 for 14 emails spread throughout the last year, and most of the pumps had a limited effect on the general falling trend. Knowing the fundamentals of the ERBB business, the latest upward leg of the graph may be just bargain buying, with the added buzz of recently announced financial results. It is best to estimate your own time horizon and acceptable losses before committing to this pink sheet.
As the biotech sector is among the most actively growing sections of the OTC market at the beginning of the new year, it may be useful to look at a more solid proposal. Amarantus Biosciences, Inc. (OTC:AMBS) jumped 8 times to 16 cents in January, but wiped out some of the gains on profit-taking in the past few weeks.