Biomerica's COVID-19 Test Ignites The Market

Summary

• With two subsidiaries in Mexico and Europe, Biomerica, Inc. is an entity incorporated in Delaware. The company manufactures and develops products, which help detect chronic diseases.
• In my opinion, the information released on June 16, 2020 about the development of a new test for COVID-19 made the share price creep up.
• I would actually expect additional share price increases because the company could receive the CE mark to sell the test outside the United States.
• The upside potential is massive on this name. With a share count of 11.31 million and 2.5% of the COVID-19 market, I would say that the share price could go to $25-$30.
• I am not really worried about the company’s total liabilities because the asset/liability ratio is equal to 2.3x.

Biomerica (NASDAQ:BMRA) ’s new COVID-19 incoming test made investors push the share price up. I do understand the massive price move because the target market is large. With that, market participants should get to know the company’s patents and other tests. Biomerica appears to be a long term play. Market participants with a short term mentality need to conduct due diligence on this name because the upside appears significant.

A Significant Amount Of Stock Catalysts

With two subsidiaries in Mexico and Europe, Biomerica, Inc. is an entity incorporated in Delaware. The company manufactures and develops products, which help detect chronic diseases.

Investors will appreciate that Biomerica generates revenue from the sale of FDA-approved products and several product candidates:

Source: IR Presentation

The company targets several diseases including cancers, ulcers, infertility, and diabetes among others. The list of products commercialized by Biomerica is overwhelming. I cannot go through all of them. A substantial amount of information is available on the company’s website, which readers can visit. With that, the following text offers a great explanation on how the company’s diagnostic test and other tools work.

The diagnostic test kits are used to analyze blood, urine, or fecal specimens from patients in the diagnosis of various diseases and other medical complications, by measuring or detecting the existence and/or level of specific bacteria, hormones, antibodies, antigens or other substances, which may exist in a patient’s body, stools, or blood, often in extremely small concentrations. Source: Annual Report

Source: IR Presentation

In my opinion, it is very beneficial that the company sells products to the customers from all over the world. A significant amount of sales come from Europe, Asia, and the US. It is ideal because if one region does not perform, the company will still make significant sales in other parts of the world. I also appreciate that the

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in BMRA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.