BioDelivery Sciences: Attractive Under $5

Shares of BioDelivery Sciences (BDSI) traded up about five percent during mid day trading on Wednesday after the company issued a press release announcing that it has "retained ICR, a leading investor relations and strategic advisory firm, to assist in the Company's shareholder communications program."

Any growing company like BioDelivery could use a good PR firm to grow both the business and investor awareness and ICR looks to be just as good a choice as any to get the message out.

In additional news, Robert W Baird analyst Thomas Russo initiated coverage on BDSI with a rating of 'Outperform' and a price target of $7.

After the recent breach through the five dollar level, where I thought it would be a good idea to add a few shares, I don't see BDSI going any lower than the current levels - but if it does, I'd be prepared to add again on any dip.

That being said, BDSI should start inching upwards, in my opinion, as the fourth quarter launch of Onsolis approaches, and I also think that the $7 price target issued by Russo is somewhat conservative given that the stock briefly traded for over eight bucks a couple of months ago. I could very well see this stock approaching ten dollars over the next couple of quarters as investors get an idea of how Onsolis is selling in addition to some pipeline updates issued by the new PR firm.

Shareholders who held through the post-Onsolis-approval dip, and then added in the fours, should start reaping the rewards of their patience by the fourth quarter of 2009.

If you're an investor just now looking to get in, BDSI - with an approved product awaiting commercial launch - is a good growth story (no longer speculative) that has additional potential in the pipeline.

Current shareholders may find adding shares for under five bucks an attractive proposition.

Disclosure: VFC is long BDSI.

Comments

[castle]

BDSI maybe a good company, I'll take your word for it VFC but that is one ugly chart and started after Onsolis FDA approval. Go figure!

2009 Aug 20 05:34 PM

[VFC's Stock House]

Castle,

You're right.....but remember that Feuerstein is involved here, too. Anytime that guy is around a stock I expect pure price manipulation - I try to play the manipulation. As soon as revenues start rolling in - in my opinion - then we should start seeing the stock trade based on value and potential, if not sooner.

VFC

2009 Aug 21 09:12 AM

[saj]

Understand one fundamental point: Pain management in oncology patients will continue to evolve even without the introduction of Onsolis. Such medication and administrative technology is not necessary to effectively manage pain.

2009 Aug 21 02:03 PM