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Today's new idea has a video for
your pleasure. Place your seat backs in their full and upright position,
get your seat belt on, and get ready for take off. Turn off all other electrical
Viewing the video could not be more
simple- just go to the home page at www.otcjournal.com,
and it will just start playing. Turn on your speakers, and be prepared
to invest 12 minutes and 34 seconds of your time. If you like the idea,
it could be the best 13 minutes you ever invested. Stick around for my
conclusion and watch me have some fun with it.
||Bohai Pharmaceuticals (OTC
BB: BOPH): 3,700 Years Of Clinical Trials
China boasts the oldest civilization
in the world, and was really the dominant global culture until the whole
darn country missed the Industrial Revolution in the early 20th Century.
Dating back to the 17th Century BC, the Chinese civilization dominated
globally for 37 centuries before losing ground under the archaic Communist
Today, China's version of Communism
is about as capitalistic as it gets, and the Chinese government is implementing
policies to encourage the growth of private enterprise business. In short,
they are making up for lost time very quickly.
The Chinese civilization has had
3700 years to develop traditional health care therapies. That's one heck
of a long clinical trial. After 3700 years, it is reasonable to assume
today's popular therapies are around because they work. Traditional Chinese
medicine has been weaved into the fabric of their society for thousands
Fast forward to today's Modern China.
is still a major part of the culture, but the manufacturers of it are now
regulated, and the products they market require approvals. Over 80% of
hospitals offer TCM as a regular part of their therapy.
As the number of China consumers
swells by another 130 million over the next five years, the means to consume
a lot more product in the TCM space will grow considerably. Coupled
with a projected 44% increase in government spending on health care, the
future looks pretty darn robust for TCM medicines in general.
Armed with 29 government approvals,
10 herbal based compounds that generated $60 million in annual sales
in FY '10, $9 million in net profits, 300 sales reps in 20 offices throughout
China, and a marketing war chest, Bohai is positioned for very robust growth
in FY'11, underway since July 1st.
As stated above, BOPH has
governtment approved herbal compounds, and 10 products on the shelves today.
Here's my favorite. This Elixir is used for fatigue, insomnia, and impotence.
As I said on the video, Caffeine, Ambien, and Viagra all rolled into one.
The company also has compounds used
to treat arthritis, the flu, iron poor blood, lung distress (very popular
in the big cities), back pain, muscle soarness, and circulatory issues.
You can review images of their products on their corporate web site at
The use of TCM has also expanded
quite dramatically on a global basis- a $32 billion plus market growing
at 23% annually. Bohai has the opportunity to expand in the direction
of export, but I don't believe you need to bet on exports to make money
on the stock. They have virtually unlimited expansion opportunity with
China, and it's merely the allocation of resources by the company to fuel
Plain and simple: Pre announced today
for FY'10 which ended at the end of June: $58 million in revenues,
and $.61 per share in EPS. These numbers will be in the rear view
mirror as soon as he final 10K is filed, and that is due out by the end
The only time- perhaps in history,
we will be able to buy $.60 in EPS for a mere 2 bucks
is right now. And - remember- you are buying $.60 in EPS for
$2.30 in last year's numbers. Next year is a whole other story, and
the company will likely come in much higher if history repeats itself.
There's nothing to see on a chart.
This stock has just begun trading. The one month high is $2.30-
the low was $.80, which it touched off for a nano second. More importantly,
the company raised over $10 million earlier this year with
over 100 individual investors. Those investors paid $2.25-
about where the stock trades today.
The catalytic event that could get
this one rolling is yesterday's disclosure of the numbers- $58 million
in revs and $.61 in EPS for the fiscal year ending this past June
30th- the final numbers will be out later this month, and no doubt they
will be slightly higher.
And- did I mention? BOPH has
about $25 million more in cash and receivables than it has in debt and
payables? That's about $1.50 per share in cash (end
of March report)- you are therefore buying the business for $.80 per share
at $2.30. The rest is cash.
I invested $75,000 of my own money
in this one at $1.50, I see the stock worth $6 in any sort of reasonable
market. I've been in it for about 4 months now. It's worth noting, as I
disclosed in my recent article on "Faith Based Investing", that
I invested personal money in NFEC at $.60 at the last market
low, and CREG at $1.30 at the last market low as well. Look
at the highs on those stocks, and look at today's levels.
There's no assurance history will
repeat itself, but I certainly sleep well at night knowing I own pieces
of the fabulous China based companies that are making money and growing.
With patience, this a no brainer for investors with a time horizon of several
As always, don't forget to check
at www.pinksheets.com for the accurate. Click
here go straight to the quote for BOPH.
Here's Friday's news for you review:
Issues Fiscal 2010 Revenue and Earnings Guidance
Net Revenue of $58 Million for the Year Ended June 30, 2010, Net Income
of $9.0 Million and EPS of $0.61, Exceeding Previous Year’s Performance
Press Release Source:
Bohai Pharmaceuticals Group, Inc. On Friday September 10, 2010, 4:10 pm
WIRE)--Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB: BOPH), a China-based
pharmaceutical company engaged in the production, manufacturing and distribution
of Traditional Chinese Medicine (TCM) in China, today announced revenue
and earnings guidance for its fiscal year ending June 30, 2010. Based on
a preliminary assessment of Bohai’s year-end financials, which will be
finalized toward the end of September and announced through a 10-K filing
with the SEC, Bohai expects to report record levels of net revenue and
net income in comparison to its fiscal 2008 and 2009 results.
The company’s projected
guidance for its June 30, 2010 fiscal year results are as follows:
• FY 2010 projected net
revenue of $58 million (vs. $49.3 million FY 2009), equating to an 18%
year-over-year net revenue increase.
• FY 2010 projected net
income of $9.0 million (vs. $7.9 million FY 2009), equating to an approximate
14% year-over-year net income increase.
• EPS of approximately
$0.61 based on 14.7 million weighted average basic shares outstanding.
"We remain unequivocal
in our commitment to driving revenue and earnings growth,” said Mr. Hongwei
Qu, President and Chief Executive Officer of Bohai Pharmaceuticals. “We
believe that our business model, which focuses on the government supported
pharmaceutical and healthcare markets in China, is validated by our nine
months ended March 31, 2010 top line results as well as current and forecasted
top line and bottom line numbers for our June 30 fiscal year end. We believe
our proactive sales initiatives and increased budget due to our capital
raise in January will serve to drive our revenues, earnings and, ultimately,
Group recently became a US publicly listed company in early 2010, along
with a concurrent $12 million private raise, and as a result of the guidance
announced today, expects to achieve record levels of revenue and earnings
due to its corporate growth initiatives and expertise in China’s expanding
pharmaceutical and Traditional Chinese Medicine (TCM) industries. The company
is committed to establishing itself as a leading manufacturer and distributor
of TCM throughout China’s major cities and rural areas. The company believes
it is positioned to capitalize on the rapidly-growing demand for Traditional
Chinese Medicine products in China, which is anticipated to increase due
to China’s rising middle class, increasing elderly population and Chinese
government support. More details regarding Bohai’s business and financial
condition and results will be available in the company’s Annual Report
on Form 10-K, which is due to be filed by the end of September. The guidance
set forth herein is preliminary, unaudited and, therefore, subject to change.
About Bohai Pharmaceuticals
Based in the city of
Yantai, Shandong Province, China, Bohai Pharmaceuticals Group, Inc. (OTCBB/OTCQB:
BOPH) is engaged in the production, manufacturing and distribution of herbal
pharmaceuticals based on Traditional Chinese Medicine in China. Bohai’s
medicines address common health problems such as rheumatoid arthritis,
viral infections, gynecological diseases, cardio vascular issues and respiratory
diseases. Bohai’s products are sold either by prescription through hospitals
or over-the-counter through local pharmacies and retail drug store chains.
Bohai has approximately 600 employees, including approximately 300 sales
representatives, operating from 20 offices throughout China. Bohai’s lead
products, Tongbi Capsules and Tablets and Lung Nourishing Cream, are eligible
for reimbursement under China’s National Medical Insurance Program.
For additional information,
please visit Bohai’s corporate website: www.bohaipharma.com.
Relating to Bohai’s Trading Data
Due to certain recent
disruptions in the marketplace relating to quotations on the OTC Bulletin
Board operated by FINRA (OTCBB), incomplete trading data may exist for
certain companies like Bohai. Real-time trading data for Bohai on the OTCQB
market is available through the below link. Readers are advised that OTCQB
market is operated by the owner of otcmarkets.com, and Bohai Pharmaceuticals
Group, Inc. makes no representation or warranty regarding the OTCQB market.
For real-time trading
data for Bohai on the OTCQB market, including Level 2 quotes, please visit:
Cautionary Note Regarding
Forward Looking Statements
This press release, the
investor presentation material referred to herein and the statements of
representatives of Bohai Pharmaceuticals Group, Inc. (the “Company”) related
thereto contain, or may contain, among other things, “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical fact included herein
are “forward-looking statements,” including any other statements of non-historical
information. These forward-looking statements are subject to significant
known and unknown risks and uncertainties and are often identified by the
use of forward-looking terminology such as “guidance,” “projects,” “may,”
“could,” “would,” “should,” “believes,” “expects,” “anticipates,” “estimates,”
“intends,” “plans,” or similar expressions. All forward-looking statements
involve material assumptions, risks and uncertainties, and the expectations
contained in such statements may prove to be incorrect. Investors should
not place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. The Company’s actual results
(including, without limitation, the guidance for financial results described
in this press release) could differ materially from those anticipated in
these forward-looking statements as a result of a variety of factors, including
the completion of audited financial statements and the factors and risks
discussed in the periodic reports that the Company files with the Securities
and Exchange Commission (http://www.sec.gov).
All forward-looking statements attributable to the Company or persons acting
on its behalf are expressly qualified in their entirety by these factors.
The Company undertakes no duty to update these forward-looking statements
except as required by law.
Gene Hsiao, Chief Financial
Trilogy Capital Partners
Darren Minton, President
Disclosure: I'm long, as are other
affiliates in our organization. We have been paid no compensation for this
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