What will happen to the SKVI share price as demand increases for their product that protects from H1N1?
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QUESTION: What will happen to the SKVI share price as demand increases for their product that protects from H1N1?
That is the key question. I typically look at the fundamentals of a company when I look for a break-out candidate. The company has 92 million shares outstanding. The insider holding is about 50%. The company has not done reverse splits or anything of the sort in the past. The company does not have strange preferred issues that are designed for the insiders at the cost of the common share holders. Everyone is a common shareholder that holds an interest in SKVI.
With a market cap of between $7 and $8 million, this stock could easily be worth much more. They have had some very quality research coverage. Estimates of $1.00 have come from Fundamental Research Corp. That report is dated last year – February 25, 2008. This is long before any of us knew the World Health Organization would declare a Phase 6 Pandemic this year.
What I see when I see that report is a great company with a variety of products at market. What I do not see in that February, 2008 report is what we have now… SKVI is an incredible opportunity to make a meaningful difference by supply a product that can give everyone using it a first line of defense from H1N1. This will not only help the bottom line of SKVI, but could protect the health of a lot of people.
The vaccine is going to be late. We have heard that. Washing your hands is great, but we all know that seconds after you wash you hands you may be called upon to shake hands, handle a door knob, borrow a pen, or sit at a table in a public area.
The company has a very effective marketing person in Doreen McMorran. Along with Terry Howlett, she is reaching out to some of the biggest names in pharmaceuticals world wide. Spending the day in their offices a couple of weeks back, I got a real feel for the marketing efforts underway. They are on this. I am very confident.
Going back to my initial question at the top, what is going to happen to share price here?
I have been at this a long time. I believe the product to have an incredible potential based on its timeliness. I know how investors think. Right now they are just beginning to see it in the news. Soon they will be looking for “the best swine flu stock.” While I personally do not look for stocks based on the buzz word at the moment, I have been following SKVI for some time. When I saw they truly had the product and they could deploy it in Canada as soon as this Fall, I knew we had a winner here.
My take on the stock WITHOUT DermSafe is easily several times current valuation. With DermSafe on store shelves and in use world wide, we could see some serious appreciation.
I personally have restricted shares. Those are no less than a six month hold. I would recommend anyone looking at SKVI think of this as no less than a six month hold. H1N1 is supposed to be with us a couple of years with great intensity. I see a strong market for a couple of solid years, and then a firm habit built up for the enhanced protection from similar viruses using DermSafe.
I think the shares will see much higher levels during the next 12 months.
Understand traders are likey to go after this strong. Depending on sales, we could see revenues that justify and even higher price.
On a personal note, I do think traders who do take a position here owe it to everyone to spread the word about Skinvisible and DermSafe. Not as an investment, but as a product that can help. While it will be some time before it is available in the US (and I am assuming it will be – that process will take some serious time), it will be as close as Canada in a few weeks. Friends and family should know about it. Nothing is perfect in prevention of this pandemic, but DermSafe will help.
Good luck SKVI. I am looking forward to watching this over the next few weeks.
Thank you,
John Pentony
Publisher, StockGuru
Pentony Enterprises LLC is STOCKGURU.COM, SHAREHOLDERVISION.COM and STREETRESEARCH.COM. 9555 Lebanon Road; Suite 103; Frisco, Texas 75035. (469) 252-3030. Disclosure: Pentony Enterprises LLC will be compensated 500,000 144 restricted common shares by the company for profile coverage for the period ending January 30, 2010. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
