Biomerica Inc. (NASDAQ:BMRA) has been in the spotlight in recent weeks as news broke that the company is currently shipping samples of it’s Coronavirus test out of the US. As of now, there is no efficient way of testing the virus without it being examined in a lab – generally taking a few days to process. BMRA have shipped initial samples of their test out of the US, which only involves a simple finger prick and a result within 10 minutes. If successful, this product will enable the testing to be done within medical practices – an innovative way of reaching an urgent need globally. The test is also significantly more portable than current methods, allowing for access globally within schools, hospitals, airports, work places and even cruise ships. If FDA approved, this stock could be the biggest COVID-19 success story yet.
Zero to Hero
Biomerica Inc. (NASDAQ:BMRA) stock price has surged over the past 3 days recording a 781% increase – trading at $2.37 (18th of March) and now opening today at $20.30 (20th of March). Surges like these are very rare, with a lot of speculative investors moving funds into this Bio-tech firm – who is currently leading the race in Coronavirus testing. This begs the question, how long are investors planning to hold? We have seen in recent weeks, Bio-techs working on the COVID-19 vaccine being pumped and dumped – such as iBio currently priced at $1.60 which reached highs of $2.45 at the start of this month. The difference between other bio-tech speccies and this stock is that it has the ability to distribute these tests effectively on a large scale. This would have to be the most promising COVID-19 opportunity to date – in my opinion.
Short term gain, with long term success
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
The current stock price will likely open higher again today as more investors become aware of this COVID-19 opportunity. If they are able to successfully get FDA approved and begin to distribute these tests globally, we could be looking at the next big Bio-tech firm in America. The demand for sufficient testing right now is the highest most Bio-tech firms will ever experience in their lifetime. At this time however, this company is still under speculation. However the opportunity here looks too good to let go. The most promising aspect of this product is that it is likely to sell at around $10 per unit, meaning it will remain highly affordable for industries in need of testing. Not only is this a big opportunity for investors, it also reaps a silver lining in the current global crisis. A successful test will allow Governments and Health departments across the globe to diagnose and contain the virus. One aspect investors may not be understanding, is that the revenue from such a product will give Biomerica (NASDAQ:BMRA) the upper hand in years and decades to come.
An investment into a stock such as Biomerica holds a huge amount of Un-Systematic risk. An investment in this firm would be considered a short speccing as the current value of the company is overly inflated. This is not to say if they are successful in the production and distribution of the test, the company will of course be likely to grow further. It is hard to make a decision based solely on the fundamentals, however the current investor backing looks very promising making this company one of my “MUST WATCH” stocks in the USA.
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The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Tyger Fitzpatrick, Founder of YIG.