Biostar Pharmaceuticals Inc (NASDAQ:BSPM)
Biostar Pharmaceuticals Inc (NASDAQ:BSPM) stock is up over 20% and trading above a key $2 resistance level. Volume is heavy – nearly 30 times the listed daily average. No news has come out on the drug manufacturer, but observers are speculating that the market may be jumping in ahead of the company’s earnings release on November 20, 2017.
Biostar Pharmaceuticals Inc (NASDAQ:BSPM), headquartered in China, through its wholly owned subsidiary and controlled affiliates, develops, manufactures, and markets pharmaceutical and health supplement products for a variety of diseases and conditions. The Company’s most popular product is its XinAoxingOleanolic Acid Capsule, an over-the-counter medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population.
The company has a current ratio of 1.3, which indicates it will be able to satisfy any debt obligations in the near term. While its cash/share figure is only $0.07, it has a book/share value of $14.43. According to reports, industry analysts are expecting Biostar Pharmaceuticals Inc (NASDAQ:BSPM) earnings to grow almost 80% this year.
Sales have taken a hit since 2014 when the company posted a figure of $61.4 million. That year represented the end of an uptrend in its sales. In 2015 the company reported sales of $27.1 million, and just $2.4 million for 2016.
BSPM Stock Performance
Over the past year, BSPM has lost over 50% of its value. In 2016, the stock struggled to remain over the $5 handle and any gains over that price quickly met with selling action. However, in the past quarter BSPM stock has gained around 20%. Further, analysts have a consensus, one-year price target of $7 on the shares. Currently, BSPM stock is trading 70% above its 52-week low of $1.18, but well below its 52-week high of $4.30.
Earnings have been disappointing for long-term holders of the shares. In 2015, the company posted a per share loss of ($11.36, but last year that shrank to (-$2.48). Dilution has been noticeable, but not cringe-worthy. In 2013 there were 1.37 million shares outstanding. But by 2016 the number was listed at 2.3 million.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.