Dow Jones 12605.83 -48.53 6:12 am PDT, April 3, 2008 NASDAQ 2361.40 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1367.53 +0.00 Change your subscription status here Russell 2000 712.27 +0.00 VOLUME 08 : ISSUE 33 Bio-Matrix Revenue Timeline Hyper-Accelerated, The Time Is Now Remember last Thursday how I said Bio-Matrix could be weeks away from revenue? It's actually even better...the timeline has been fast-forwarded to mere days. As a result, the narrow window of opportunity to get in pre-revenue (which us typically when big biotech stock gains are made) is closing fast. I think the time to become an owner is today, before anybody else hears this morning's news. We'll look at the announcement of course, but I also want to let you know we've changed our entry and exit parameters from last Thursday's alert. There's also a major clarification I want to make sure everyone understands ....a good one. So, we'll close with that.    And So It Begins The case for being an investor in Bio-Matrix Solutions Group Inc. (OTCBB: BMSN) was pretty clear last Thursday. The final public tour of the facility this week, and preparation for an inspection afterwards, was a strong statement from the company about feeling ready to roll. If the inspection goes well, they'll immediately receive their final required tissue bank license, and could literally 'open for business' as easily as flipping a switch. We estimated first year revenues could be somewhere between $4 million and $8 million, which isn't bad for a company with a market cap of only $11.7 million right now. The company thinks they could annually be doing $30 million in stem-cell storage business within the foreseeable future. When they came out with Tuesday's news about opening two gene coding labs though, we all should have guessed there was something bigger and better on the way.  Well, today's news (which just came out) is the 'better'. Bio-Matrix has received a letter of intent from VIBRAGENE - a genetic analysis company - that calls for the use of Bio-Matrix's gene coding labs. Per the letter, Bio-Matrix anticipates performing human DNA testing for VIBRAGENE, searching for biomarkers that indicate susceptibility to various diseases. Most importantly, it would be a revenue bearing venture for Bio-Matrix.  There are two key points to stress here. One, there's no additional licensing requirement for this venture - they can start anytime. And two, there's no additional equipment or facility needed - Bio-Matrix's current facility can do the job. The press release didn't cite any specific dollar amounts, but it did mention VIBRAGENE anticipates needing about 100,000 specimens processed over the next twelve months.  Though we don't want to get too presumptuous, processing comparable gene tests can cost anywhere from as low as $30 to as much as a few hundred bucks, depending on what needs to be identified.  Just for perspective and scope, let's say each test will generate $50 for Bio-Matrix. At 100,000 pieces per year, that turns into revenues of $5 million. Point being, no matter what the average price is, it could be significant sales for the company. More importantly, this could be happening very soon...and the market knows it, or they will soon enough. I strongly suggest stepping into a position this morning before the news spreads any further.   Updated Trade Parameters Last Thursday I laid out a specific entry limit and a suggested stop for Bio-Matrix shares. I do that for one reason - to protect you from volatility. After a strong February/March rally, it was tough to say how the stock was going to proceed. Since then, I've observed BMSN to be plenty stable, and plenty liquid. Moreover, we've seen the stock set up a nice consolidation base between some key Fibonacci lines, finding a foothold around 40 cents. So with volatility not being an issue, I think it's fine to not to even worry about an entry limit today (though reason still prevails), and scoot the stop level down to 25 cents. That should give the stock adequate room to breath, but still be defensive enough. The target of $1.45 still stands. That's a gain of about 190% from Wednesday's closing level.  Sounds lofty? I don't think so. The market cap would be about $34 million at that level, which is roughly the amount Bio-Matrix plans on eventually doing in annual sales. The average biotech stock trades at about twice its annual revenues.   A Better Explanation Some of you asked the question, which means more of you thought it. Soooo...  The question was, what's the big deal about Bio-Matrix? Can't anyone really do the same thing? Our answer is, no, not really. In fact, it's unlikely anybody will really ever be in a position to do what they do - at least as far into the future as we can see. Bio-Matrix plans on being licensed as the first adult stem-cell cryogenic storage facility in the world. It took them years to get there. It could take years for anybody else to even get close too, and even then any competition would have to deal with a major (and lengthy) licensing process. It's just cost and time prohibitive, basically to the point where it makes more sense for a would-be competitor to not even try to jump into the game. As for the 'big deal', something we didn't mention the last time around was just how real this opportunity is.  A few years ago if you had uttered the words 'cryogenic storage of adult stem cells', people would have had no clue what you were talking about. Today, analysts estimate the total stem cell therapy market could be worth more than $8 billion annually within a few years, as the advantages of 'tailor made' treatments come to light. Better still, the industry's focus has recently turned towards adult stem cells and away from embryonic stem cells. The one pre-requisite to utilizing adult stem cell therapies is - you guessed it - samples actually have to be stored before the need arises. Considering they're getting very close to a final licensing inspection, they may also be getting close to being the only adult stem call storage game in town. Anyway...  To repeat something I mentioned last week, successful biotech investing pretty much requires you to be preemptive rather than reactive. To that end, revenues often seem to be the hot button. I wouldn't be surprised to see BMSN break out on the VIBRAGENE news; the adult stem cell storage opportunity is a nice kicker.  In short, wait on the sidelines at your own peril. I think now's the time to be proactive and become an owner, before anybody else finds this stock.  Here's the news release:    Bio-Matrix Scientific Group, Inc. Signs Letter of Intent with VIBRAGENE for DNA / Genetic Testing  SAN DIEGO, CA  Bio-Matrix Scientific Group Inc (OTCBB: BMSN), a biotechnology company focused on adult stem cell processing and cryogenic storage, announced today that it has entered into a Letter of Intent with VIBRAGENE, an anti-aging and genetic analysis company.  Pursuant to the Letter of Intent, it is proposed that Bio-Matrix Scientific Group, Inc. will perform human DNA genetic testing for biomarkers that may play important roles in disease development. VIBRAGENE anticipates sending 100,000 specimens to Bio-Matrix for testing during the next 12 months. Additionally, Bio-Matrix will supply DNA testing kits to VIBRAGENE for the collection of DNA specimens. Completion of the proposed agreement is subject to a number of conditions, including but not limited to, the establishment of pricing acceptable to the parties. With recent advances in sequencing of the human genome, personalized medicine will become increasingly important in the treatment of diseases. The addition of DNA testing capability at the company's Facility complements Bio-Matrix' business lines of processing and storing stem cells for future medical uses. Bio-Matrix currently has two Class 100,000 DNA laboratories that will be utilized to reduce the risks of contamination during DNA amplification and testing. These laboratories, combined with our current cGMP/cGTP requirements as an FDA registered Facility for stem cell operations, will assure clients of the highest standards in all technologies used.  About Bio-Matrix Scientific Group Bio-Matrix Scientific Group Inc. (www.BMSN.us) is a biotech research and development Company that commercializes 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' new 15,000 sq. ft. state-of-the-art facility, located in the heart of San Diego's biotechnology corridor, will house Bio-Matrix' two 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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