Investing to Wealth

BioElectronics Corp. (OTCPK: BIEL)

BioElectronics Corp. (BIEL) designs, develops and markets a variety of drug-free, anti-inflammatory patches for a range of medical indications. The Company’s patch products, which are marketed under the name ActiPatch Therapy, deliver pulsed electromagnetic field therapy, an anti-inflammatory and pain relief therapy. The ActiPatch Therapy products combine a miniaturized microchip, power source and antenna in a soft, flexible outer envelope. When applied to the body, these devices deliver a pulsed radio frequency signal into the body on a 27-megahertz (MHz) frequency wave that induces a low frequency electromagnetic field to damaged cell tissue. The Company markets its products in the United States, Canada and Europe. BIEL sells its products to wholesale distributors, as well as directly to hospitals and clinics.

The Company was incorporated in 2000 and is based in Frederick, Maryland.

Source: http://www.reuters.com/finance/stocks/incomeStatement?stmtType=INC&perType=INT&symbol=BIEL.PK , https://trading.scottrade.com/quotesresearch/ScottradeResearch.aspx?symbol=BIEL , www.bioelectronicscorp.com

Financial Summary

BIEL management indicates that the financial position of the Company has improved dramatically over the past few months. Further payments have been made on convertible debentures with balances dropping from more than $910,000 one year ago to less than $50,000 today. Elimination of all convertible debenture balances is likely over the coming weeks. BIEL is maintaining very strong gross margins and tight expense controls, resulting in the Company operating at near breakeven levels. The working capital position at the Company has also significantly improved. The recent U.S. Government Export-Import Bank guarantee is expected to further improve the working capital position.

The Company maintains reserves on customer accounts where estimated losses may result from the inability of its customers to make required payments. These reserves are determined based on a number of factors, including the current financial condition of specific customers, the age of accounts receivable balances and historical loss rate. The Allowance for Doubtful Accounts was $10,151 at June 30, 2009. Bad debt expense for the period ending June 30, 2009, and 2008 was $0 and $0 respectively.

Source: http://www.bioelectronicscorp.com/investors.php

Analyst Consensus

Chart not available.

Source: Financial Times.com

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/estimates?symbol=BIEL.PK

Investment Highlights

BIEL the maker of inexpensive, disposable drug-free anti-inflammatory devices, recently announced it has been selected as a runner up in the medical device category of the 2009 Wall Street Journal Innovation Awards announced in Monday’s global editions and online. The award was given for the Company’s wearable patch that uses pulsed electromagnetic energy to deliver drug-free pain relief for a variety of conditions.

David G. Genecov, M.D. FACS FAAP, provided preliminary data on a heel and foot pain study showing strong efficacy and 100% safety using the ActiPatch device. The study also showed study participants were able to significantly reduce their use of acetaminophen, the active ingredient in Tylenol, and non-steroidal anti-inflammatory drugs (NSAIDs). Considering the recent FDA panel recommendation relating to acetaminophen usage, these results are highly significant.

Clinical studies in the areas of breast augmentation, Cesarean section, Uveitis, and several areas of surgical recovery are quickly coming to a close with data expected over the coming months. With the data provided by the Genecov study, the management team plans to accelerate its FDA 510(k) pre-marketing clearance filing for general musculoskeletal complaints designed to lead to over-the-counter approval. In addition, the Company will soon submit an additional application of 510(k) pre-marketing clearance for general surgical recovery.

International distribution relationships continue to advance at a rapid rate. The Company announced it will soon be entering the German and Spanish markets, which will augment other international markets, particularly the Italian, Korean and Canadian markets, which are already showing revenue acceleration. Several Asian distribution partnership agreements are currently being negotiated.

BIEL announced last month the availability of a new product targeted at the $10 billion dollar veterinary care market, the HealFast(R) Therapy PetPatch(TM). A comprehensive direct to consumer marketing program will support the launch of the new product. The centerpiece of the campaign is a new TV commercial, which will begin rolling out next week. The campaign will also engage new catalog sales. The Company said that the new durable denim coat is available in four sizes to fit breeds from the smallest to the largest. The HealFast line of patches is distributed by eMarkets Group, LLC. HealFast Therapy is a wearable patch with an embedded microchip that delivers months of continuous therapy for horses, cats and dogs. The patches are the miniaturized equivalent of the pulsed electromagnetic energy machines prescribed by physicians and veterinarians for decades to reduce swelling, relieve pain and enhance the healing of surgical incisions, accidental wounds, sprains, strains and chronic wounds.

BIEL announced today the initial results from the pilot section of its ongoing acetaminophen comparison study. The study, which is expected to be complete during early November, compares the effects of ActiPatch(R) Therapy to acetaminophen in the form of Extra Strength Tylenol(R) for the treatment of delayed onset muscle soreness. Participants in the pilot section of the study were randomly assigned to one of three groups, 1) a control group, 2) a group that used ActiPatch, and 3) a group that was treated with over-the-counter strength acetaminophen in the form of Extra Strength Tylenol. Each of the group’s participants then evaluated their levels of muscle soreness and discomfort 48 hours after vigorous resistance training designed to induce delayed onset muscle soreness.

Source: Scottrade.com, Reuters.com, www.bioelectonicscorp.com

Technical Analysis

Source: www.stockcharts.com

Moving Average Price Compare

BIEL is trading below its 50-day moving average. However, this moving average is trending higher, which suggests that there has been buying interest in this stock.

Bollinger Bands

BIEL has been relatively stable recently. This is evidenced by the width of its Bollinger Bands, which are tighter than normal. Additionally, BIEL is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

MACD

The MACD for BIEL currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Source: Reuter.com, Nasdaq.com

Insider Trading Activity

Net Share Purchase Activity

Report Disclaimer

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.