SKVI – My take of valuation and the market for DermSafe, the H1N1 fighting hand sanitizer
Dear Members,
Before the market opens I wanted to share some thoughts on SKVI. This is a client stock that I truly believe in. I took the time before I ever agreed to work with SKVI to fly out and visit the company at my expense. Sometimes when you hear about a company with exactly the right technology at the right time it is just a promotional push to take advantage of the latest hot topic.
BOTTOM LINE:
SKVI’s DERMSAFE PRODUCT KILLS H1N1 VIRUS FOR UP TO FOUR HOURS AFTER APPLICATION
Skinvisible, Inc. has been hard at work for almost 11 years creating polymers and products to deliver over-the-counter and prescription compounds. Unlike you and me, YEARS AGO they saw a need for a hand sanitizer that lasts for HOURS, not seconds. They understood that someday a problem like H1N1 – “The Swine Flu” – was going to come along and we needed to be ready for it.
The great news is their product will be available in just weeks in Canada. Also equally great, the product is just a step away from being available in the UK, Europe and China. Other countries will also likely have it this Fall. The US is so careful with drugs. Even though this product uses and active ingredient that has been used to sanitize surgeons for about 50 years prepping for surgery, it still must qualify for this indication. The company approached the FDA about an Emergency Use Authorization, and that has not been granted. However, the FDA has opened a Pre-Investigational New Drug (Pre-IND) file for DermSafe. This will not likely put DermSafe on the market in the US in the calendar year 2009, but we cannot rule it out for 2010. What I am saying here is the world is the market. Demand may become so strong in the US once the right people learn about this product, perhaps we could see that process bring the drug here. My belief in SKVI is NOT based on it reaching US markets this year or next.
I am strongly looking forward to hearing what SKVI has to say in news and SEC filings in the next few days, weeks and months. This is a story I know members of StockGuru are going to be proud to play a role in.
PRICE TARGET:
As you know I really do not put out price targets. The capital structure here is the key. It is all common shares. No management person or director has a preferred stock. Everyone is in it for the same common shares. They have a ‘common’ interest shared with every other shareholder to see the price of the stock appreciate.
What target? 92 million shares; little debt; many products at market; and a huge product about to be sold to many countries at a time of pandemic. It would take a CFA to give you an exact number. I think the shares are easily worth several times the current trading level. The market will tell us for sure in the next few months.
Good luck and email me any questions. Some I can answer, some I cannot.
FOR MORE DETAILS – VISIT OUR PROFILE:
http://www.stockguru.com/about/skinvisible-otcbb-skvi/
Thank you,
John Pentony
Publisher, StockGuru
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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.
