Dow Jones 12302.70 -120.16 1:09 pm PDT, March 27, 2008 NASDAQ 2280.83 -43.53 For info, visit access.smallcapnetwork.com S & P 500 1325.76 -15.37 Change your subscription status here Russell 2000 693.68 -8.43 VOLUME 08 : ISSUE 30 Bio-Matrix - The Lone Player in a Big Biotech Field You don't have to be a seasoned investment veteran to know timing is everything, especially when it comes to biotech. If you find the right biotech company at the right time, the potential investment gain is enormous. That's why we're so eager to present today's new idea to you...we think it's one of those 'right company, right time' scenarios. Here are the basics...the current market cap could be less than next year's total revenue. As such, we feel the potential long-term upside could be a double - if not a triple - of the stock's trading level. A couple of not-so-rhetorical questions will really help set the stage here...  1) What if you had an opportunity to become an owner of a biotech company just a few weeks before they were planning on turning the 'revenue switch' on?  2) What if you found a biotech company that could reap the inherent potential of the biotech industry, but forego the bulk of the inherent risk associated with biotech research and development?  Oh yeah - did we mention this company is the only company out there offering this kind of biotech support service?  Most experienced investors would jump at such an investment, and rightfully so. After our due diligence work, we're feeling the same.    Who Are They, And What Do They Do? We think Bio-Matrix Scientific Group Inc. (OTCBB: BMSN) shareholders have plenty to be excited about right now. Why? The company is nearing the end of their developmental stage, and on the verge of entering an operational status - as a processing and cryogenic storage facility for adult stem cells derived from adipose (fat) tissue, peripheral blood, and cord blood.   Company Name: Bio-Matrix Scientific Group Inc. Stock Symbol: BMSN Coverage Initiated: March 27, 2008 Current Price: $0.56 Average Volume: 26,571 52 Week Range: $0.10 - $1.20 Suggested Target: $1.45 Suggested Stop: $0.45 In layman's terms, Bio-Matrix can store tens of thousands of stem cell specimens, which a patient can use via stem cell therapy at a later stage in life. Their storage capacity could increase to millions of samples relatively easily.  Without turning this into a science lesson, I'll try and briefly explain why adult stem cell processing and storage is becoming a bigger deal every year.  First and foremost, I want to be clear that Bio-Matrix is not in the business of doing stem cell research of any kind.  I know for some folks the term 'stem cell' is a red flag, as it brings up moral questions. The heated issue doesn't apply in this case though. The social debate has only centered on embryonic stem cell research - not adult stem cells. Bio-Matrix will only be involved in the processing and cryogenic storage of adult stem cells found in adipose tissue (fat) gathered with permission during liposuction [yes, through plastic surgery]. Moreover, those adult stem cells can only be used for regenerative purposes with that patient.  Just for the record though, adult stem cell research has already been around a long time...much longer than any controversial embryonic stem cell research. So, it's not likely there will be any 'morality roadblock' popping up. The term 'regenerative' is really the key to it all too. There are numerous but still-untapped possibilities here, such as treatment for cancer patients (cancer is the result of damaged cells), and even the fight against cardiovascular disease. Those are just the beginning though. The attraction to the idea becomes pretty obvious with those benefits in mind. For a small processing expense and a modest annual storage fee, an individual has an opportunity to preserve their stem cells for decades. For Bio-Matrix and its investors, it's a scalable and perpetual revenue machine.    Why Them? We could truly give dozens of reasons why we think Bio-Matrix shares would make for a great investment. We'll stick to the top ones though. In no particular order... 1) They're well protected from competition. I have to admit I learned a little bit as I was studying this company, particularly about how the facility and its location could play a role in its success. The San Diego-based company's management team believes their facility will be the first commercial adult stem cell storage center on the globe. And, they should know...San Diego is the largest biotech company community in the United States, and the second largest biotech community in the world.  Did you know, however, California is somewhat the de facto standard when it comes to stem cell storage? As part of $3 billion worth of funding the state of California provided for stem-cell research, the state now also requires any facility that houses stem cells of California residents to be California licensed. I believe the costs involved with building or improving current tissue storage labs to meet that standard will simply be more trouble than it's worth to any potential competition.  In other words, it seems like Bio-Matrix could own the adult stem cell storage corner for a while - they're the only company even close to offering storage of this type. What a great position to be in, when the competition is nearly unable to even get in the game.  2) Bio-Matrix is in good company, figuratively and literally. There are 800 biotech companies within 20 minutes of Bio-Matrix's location in San Diego. In many senses, the area is to biotech what Silicon Valley is to technology ....a region that reaped huge investment rewards for a lot of people in the 80's and 90's. That's not a bad omen, not to mention a nice local customer base.  3) The business model allows for reliable, consistent revenue. When's the last time you could comfortably say that about any company in the biotech arena? There's no R&D here, and no multi-year FDA-approval process like there is for a new drug. No patents will eventually expire. This is a business that creates recurring revenue, and can be grown in perpetuity. 4) They're NOT really facing great risk when it comes to moral conflict or potential legislation. As we pointed out earlier, any controversy is limited to embryonic stem cell research - not adult stem cells.  5) The 'market' and customer-acquisition network is already in place. I was shocked - though pleasantly - to learn there were more than 12 million liposuction procedures done last year. Each one of those procedures also means a potential customer, which brings up a point worth making....  Though the ultimate beneficiaries here are individual patients, the company is thinking on a much larger scale. They're marketing the service to plastic surgeons and groups of doctors who in turn re-offer the service to individual patients. It's our understanding Bio-Matrix already has numerous inquires from doctor's groups, all looking for stem cell processing and storage service. 6) There's a real and growing demand for the service they provide, like better health, and stem cell therapy for future regenerative medicine procedures such as heart muscle and bone repair. And for only a minimal annual cost? That's a no-brainer. Those five reasons likely answered your key questions, save one...   Why Now? As loud as the 'why them' arguments speak to me, today's news clinches my confidence.  The full press release is below; I'll summarize it here though - Bio-Matrix is opening its doors for one last investor tour. After that, they have to seal the lab off from the public (forever) so they can start bringing samples in to calibrate their equipment. When the calibrations are complete, Bio-Matrix will then enter the tissue bank licensing process. Once licensed as a tissue bank, welcome to revenue city. The fact that they're doing this now - giving one last public look then prepping the lab for inspection - tells me they're getting close to their endpoint, and revenue. This may well be the best time to get involved ...right before any big news. Though it all still hinges on the final licensing decision, it's not too soon to start thinking about the potential numbers here. As we said above, we've been told the company is already speaking with several groups who may well become the company's first paying customers. All told, these outfits could need not hundreds, but thousands of stem cell specimens stored right off the bat. With four cryogenic tanks ready to roll, we believe 12-month revenue could be in the $4 million to $8 million range for a company/facility like this. The company is targeting annual revenues around $30 million within the foreseeable future. The 15,000 square foot building has room for 47 more cryogenic tanks, which could certainly generate those kinds of revenue levels. Now compare those dollar amounts to the company's capitalization. With 23.4 million shares outstanding at 56 cents each, the market cap is a mere $13 million. That's less than half of the annual sales figure the company is shooting for. Unbelievable.  By average biotech stock standards, a company doing $30 million in sales should be valued around $60 million or more, which means you could make a good argument that BMSN is currently trading at 1/5 of its potential value. I see enormous upside possibilities for the stock with that valuation model.   Tradin' the Stock If potential growth and fundamentals don't get your motor running, take a look at the nearby chart. BMSN is actually going up this year...one of the few stocks doing so. That alone tells me quite a bit about how well the market is growing to like this company. Even nicer is how BMSN is still well under its 2006 highs around $3.00. With that in mind, we believe an entry limit of 60 cents makes good trading sense.  Strategically speaking, we don't want to give anybody a reason to sell right into any strength, and we certainly don't want to give anything away if we don't have to. So, we'll cap our suggested entry at 60 cents for starters. Once the market is open and we see how things are taking shape, we may adjust the limit in the blog. Be sure to check it sometime early that morning. As for a target and stop, we feel BMSN could reach as high as $1.45, so we'll make that our initial target. The market cap would still be a modest $32 million at that trading level for the stock (though a 150% gain for tomorrow's buyers). Let's go with a stop of 45 cents. One last thought...this upcoming licensing inspection? Any approval is granted immediately, on the spot. Once a license is awarded, Bio-Matrix is instantaneously 'open for business'. And let's face it - the best time to own biotech stocks is before they make their big strides. 'Waiting to see' about major biotech news has left too many investors out of the biggest part of any gain. Veteran Small Cap Network readers will know this to be true based on big-gain experiences with CEL-SCI, BioCurex, and other biotech names. That's why we feel so strongly about getting in now - as in tomorrow. When the Bio-Matrix scenario is explained to other investors in the near future, you may find the stock is running away because everyone else is jockeying to get in before and even after the inspection is complete.  We suggest keeping your entry low by beating them to the punch, and taking on a position Friday morning. Don't be one of those investors who ends up chasing a rally.   Bio-Matrix Scientific Group to Open Its Facility for Public Tours March 31, 2008 through April 3, 2008  SAN Diego, CA - March 27, 2008 Bio-Matrix Scientific Group Inc. (OTCBB: BMSN) announced today that it will be opening its facility for public tours between 10:00 am and 4:00 pm beginning March 31st through April 3rd. The Company wants to provide interested parties the opportunity to view all the equipment, labs and additions to the building. A spokesperson for the Company noted that Management is excited about the milestones achieved and the near term prospects of the Company getting to revenue. Currently, everything is being set in place for the Company to apply for a tissue bank license. This license will allow the Company to process stem cell specimens and prepare them for cryogenic storage. Bio-Matrix already has its Biologics license and FDA registration, allowing it to store specimens. The Tissue Bank license will make the Company a complete stem cell processing and storage facility. Brian Pockett, the Company's COO said "Currently, we are finishing up our Quality Systems Documentation (QSD). Once the QSD is complete, we can apply to be licensed as a tissue bank. Recently, we have brought into our facility testing devices, additional cryogenic storage tanks, shipping tanks and support systems that should make us one of the highest rated facilities of its kind in the U.S." Those interested in touring the facility are encouraged to contact the Company to request a viewing at the earliest time. While the building is open for tours, availability will be limited. To request a reservation, please email at info@BMSN.us or call 619.398.3517 ext. 301. About Bio-Matrix Scientific Group Bio-Matrix Scientific Group Inc. (www.BMSN.us) is a biotechnology company that seeks to operate stem cell banking for the storage of adult stem cell and cord blood. Additionally, the company seeks to commercialize medical devices and monitoring systems for the growing, worldwide stem cell research market. The company aligns itself with strategic partners that offer key technologies in biomedical device development, tissue engineering, cell culturing, genome therapy and drug delivery systems to become a leading source for stem cell research technology and innovation. Bio-Matrix operates a 15,000 sq. ft. state-of-the-art facility, located in the heart of San Diego's biotechnology corridor. The Company anticipates opening its facility for specimen storage in the first half of 2008. It will house Bio-Matrix's secure Cryogenic Stem Cell Bank, three research laboratories, aseptic cellular/tissue class 10,000/100 processing laboratory, hematology, microbiology and flow cytometry laboratories.  DISCLAIMER: This news release may contain forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks. Contact:  Bio-Matrix Scientific Group Inc.  Investor Relations  619-398-3517 ext. 301  info@BMSN.us    We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. 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All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCN. To the degrees enumerated herein, SCN should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure/ to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure/ for our full profiles and http://access.smallcapnetwork.com/alert_disclosure/ for Trading Alerts.  TGR Group, LLC has been paid a fee of $30,000 cash and 250,000 shares of newly issued restricted stock by Bio-Matrix Scientific Group, Inc. for coverage of the Company. 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