BioDrain Medical, Inc. (OTC:BIOR) Revisits Heights
The stock of BioDrain Medical, Inc. (OTC:BIOR) revisits levels not seen in a few months, but this time a record number of shares changed hands around 20 cents. The spike in buying follows weeks of increasing volume, as BIOR joins the selection of small cap companies servicing the medical industry. BIOR has the advantage of providing a well-established service, yet a giant spike in activity may mean a deep loss is possible if enough investors decide to sell. 
So let’s look again at BIOR, which for now has avoided the interest of paid promoters. The producer and distributor of operating room cleaning technologies has changed its financial situation so far, to hold:
- $13,139 cash
- $369,577 total assets, of which $140,000 intangible
- $3.4 million total current liabilities
- $188,772 revenues
- $7.4 million net loss for 2012
The company reports exceedingly high administrative expenses, around $6 million, which deepen the losses. When we mentioned the company in 2011, it still worked with a great working capital deficit, which has only grown. On the positive side, the company has marked some revenues and its products seem to be accepted, which may speak of longer-term potential. Also on the positive side, the lack of a paid promotion and the sparse news from the company, aside from its SEC statements, show that BIOR is so far not interested in artificially introducing interest in its stock.
BIOR may be rising on a general trend that lifted OTC companies dealing with medical products, such as drugs or technologies. Yet the business model of BIOR seems more predictable, while pharmaceutical stocks suffer insecurity. Other contenders such as 
AP Pharma, Inc. (OTC:APPA) are having to deal with sudden loss of trust.
Our database lists yet another pharmaceutical penny stock as actively promoted, Rafarma Pharmaceuricals, Inc. (PINK:RAFA). So far, the pump has managed to create unusually high volumes, but little change in price.
The next few days will show if BION will return to its choppy, sporadic mode of trading or it will start a more discernible trend. In any case, be aware that BION and other companies from the sector are prone to sharp corrections and plan your potential losses accordingly.
