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J-Plasma And World Helium Supplies

|Includes: Bovie Medical Corporation (BVX)

In response to a previous article on Bovie Medical Corporation (NYSEMKT:BVX), a reader posted a comment asking about how tightness in the global helium supply might impact Bovie's J-Plasma medical device technology, since J-Plasma uses helium gas.

Since writing that article, a very large helium deposit has been discovered in the Tanzanian portion of East Africa's Rift Valley. A start-up company, HeliumOne, has been formed to extract the helium.

With the price of helium being about ten times higher than it was a decade ago, prospectors are now beginning to search specifically for helium, whereas in the past it was obtained purely as a by-product of the extraction of other resources (e.g., natural gas).

Dr. Chris Ballentine of The University of Oxford's Department of Earth Sciences had this to say: "This is a game-changer for the future security of society's helium needs and similar finds in the future may not be far away."

So the key take-away point here is that a sufficient supply of helium at a reasonable price is unlikely to be a long term issue for J-Plasma and Bovie.

Disclosure: I am/we are long BVX.