Let’s begin by saying that any investment is risky. When you invest, only do so on your own due diligence. Anything can happen: When Covid news went worldwide in March 2020,
even the greats tumbled. Tesla fell to $103. Boeing fell to $113 pre-market, $145 avg EOD.
Having said that, with Covid hopefully and largely a thing of the past, we wish to share our research and thoughts on the top 5 most undervalued stocks, after our deep dive of due diligence.
#1: SBFM Sunshine Biopharma Inc
SBFM offers life-saving medicines in various therapeutic areas, including oncology and antivirals.
SBFM is developing Adva-27a, a GEM-difluorinated C-glycoside derivative of podophyllotoxin to treat leukemia, lymphoma, testicular, lung, brain, prostate, bladder, colon, ovarian, liver, and other forms of cancers, as well as to kill multidrug resistant cancer cells, including pancreatic cancer, breast cancer, small-cell lung cancer, and uterine sarcoma cells.
$SBFM dropped almost 50% for absolutely no valid reason Friday.
It should have risen to at least $4.50 on the news,
from previous close of $ 3.32.
It now sits at an all time EOD low of $1.64/sh.
Monday it performed an RS, to appease the Nasdaq $1 share price requirement, and was over $8, and has been falling since for absolutely no reason.
-Friday morning, Sunshine Biopharma released some very good news:
Sunshine Biopharma’s Nora Pharma Receives Health Canada Approval for Niopeg(R)
which is used to help prevent infection in people with non-myeloid cancers who are receiving chemotherapy. An example of a non-myeloid cancer is breast cancer.
-Sales in 2023 grew to a total of $24,092,787, primarily as a result of a full year of revenues generated by the acquisition of Nora Pharma in October 2022. Nora Pharma’s revenues for its fiscal year ended June 30, 2022, were $10,766,982.
-The average 2023 quarter-over-quarter growth in sales was 14%.
-Loss per share decreased from a negative $1.76 per share in 2022 to a negative $0.19 per share in 2023.
-Completed a private placement of approximately $5 million in gross proceeds for use in part for expansion of sales operations.
-Repurchased 513,723 shares of the Company’s common stock on the market for a total of $541,143.
-SBFM had a sales surprise over guidance of 25.9%!
(In contrast –Pfizer(PFE) had a negative .84% and dropped only 6% in the same timeframe, where SBFM dropped a whopping 721%! )
Let’s extrapolate that metric out:
if -.84= -6%, then +25.9 would =+185x , or about $304.
This is very close to Aegis Capital’s $300 pt long term, and what the share price should be — to be simply equivalent with the larger
pharma companies.
-SBFM had $6.6 million in GP on 2023, a 488% growth YOY(!).
-Expenses decreased 54% YOY(!)
-SBFM has an extremely attractive, tiny float of $950K shares
-April 5th it was the equivalent of $11.84/sh (.1184 pre-RS)
Only the good PR happened in the last 20 days, nothing negative,
this was clearly a gross overreaction to “Sell the News.”
-SBFM currently has a $1.55 m Market Cap,
which is ridiculously low.
-SBFM is EXTREMELY good value based on its book value relative to its share price (0.08x), compared to the US Drug Manufacturers’ Specialty & Generic industry average, (2.03x).
Extrapolate that out with the 25.375x multiple, that comes to $41.65/share.
-The next Earnings Report is scheduled for May 9th-10th and should right the ship, which is not really sinking.
They most likely will be finally profitable, perhaps quite a bit.
The company is FLUSH with cash, $15 million on hand,
and growing revenue quarterly with their fabulous acquisition of Nora Pharma.
Quite undervalued for their earnings, and future potential,
with a net cash position of $15.63 million or $15.72 per share. PT=$41.65-$304/sh (max 18,300% upside potential!)
#2: XTIA XTI Aerospace Inc
With recent news posted on MarketWatch, XTIA is now confirmed to have a float of 483K shares, with 1.93m overall. XTI ‘s evaluation was professionally set at $245 mill -$340 mill, +the $20m INPX eval, brings this to an incredible max PT of $137/share value. Currently just $2.83…
(4840% upside potential!)
#3 HKD AMTD Digital Inc.
Quietly having 2 enormously high grossing movies, “Moscow Mission”– a Chinese Record setter–and “The Goldfinger” in late 2023, the ER expected by the end of April, like last year, plus recent $40 million in stock buybacks should propel this sleeping giant back to its lofty heights.
PT=$55/sh. (1833% upside potential!)
#4: LQR Liquor House
Recently performing a 50% dividend in shares, and receiving many new orders, the future is unlimited for this company.
The price has fallen for no reason, it posted a 370 % YOY revenue growth for March 2024.
With a vibrant CEO, valued partnerships, and loyal investor base, this should 8x or more, soon.
PT=$9.50/sh (855% upside potential!)
#5 HOLO MicroCloud Hologram Inc
Recently this stock did a mini HKD run, approx 1/3 of it in one day, reaching from $1.50 to $113. It is set to join a communications group, with their amazing holographic ChatGPT simulation, and already offer their services to an unknown EV maker in China, likely BYD.
With a micro float of 1.81m, its volume and volatility are legendary already. Any day, anything can happen. But even
long term holders can be rewarded, as the future of this
company is so bright, all their employees and investors should wear shades. PT=$22/sh (800% upside potential!)
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Companies’ current expectations and projections about future events that the Companies believe may affect its financial condition, results of operations, business strategy and financial needs. Shareholders can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Companies undertake no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the registration statements on Form S-1 filed with the SEC and other filings with the SEC. Although the Companies believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Companies cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Companies; registration statements and other filings with the SEC. Additional factors are discussed in the Companies’ filings with the SEC, which are available for review at www.sec.gov.
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