The Nasdaq's Most (Grossly) Undervalued Stock ...And Why
To preface the purpose of this article, here at A1 Financial, we
dislike any injustice, it's why we fund U.S. business owners with credit scores as low as 300. There's always two sides to every story...things happen, but we look for strengths to make our decisions. That's the "American Way."
Now, while we clearly state that the Stock Market is volatile,
and you should never invest without doing your own due diligence, we feel, as being true Americans, we must write about this injustice, --which is extreme-- even by bearish market standards.
Something absolutely INSANE is going on with Sunshine Biopharma's stock. We wanted to see the bear's point of view,
and -----we listened closely-- we found that they are being misled by numbers, due to the warrants that were pre-reverse split.
They are not taking that into account. They are 100x wrong in their thinking.
Here's the timeline explaining the dilution, which was deep, yes,
and the bearish overreaction, which was many times worse.
It all really started November 13, 2023:
The SBFM Timeline Showing Stock Market Insanity Begins:
November 13, 2023 SBFM posts a press release (PR) :
"Sunshine Biopharma Reports 2023 Third Quarter Results: Revenues up Significantly Over Last Year Due to a Key Acquisition"...(This was Nora Pharma.) The company reported gross revenues of $5,957,668 for the quarter ended September 30, 2023, an increase of $5,824,860 over the same period in 2022. The increase was due to the prescription drugs sales of Nora Pharma Inc., a generic pharmaceuticals company that Sunshine Biopharma acquired in October 2022. In addition, the Company's third quarter revenues of $5,957,668 represented a 7.1% increase over the second quarter results of $5,560,865 and a 21.7% increase over the first quarter results of $4,894,053.
The stock price at the end of the day was .254 ($25.40 in today's
market value, post reverse split). This was a shocking number, as on May 8th, 2023 the ending share price was .738 ($73.80 today.)
December 4, 2023 SBFM announces they moved to NYC, from Canada. A positive step, making them a U.S. business.
Closing price, .268 ($26.80 today.)
February 13-15, 2024 The share price takes a hit, as the company needs money, to further their expansion, and liver cancer drug program, and Covid treatment program. Normal for any pharma company. There were 71million "units" offered, which were not shares- 1/10th of a share, pre-split--tendered, and rolled in to the pre-split count of shares. End of day price was .064
($6.40 today). So, if we do the math, the market cap pre-dilution was $29 million. $10 million in total dilution. The correct math would be a 25.65% drop, yet it fell 77% from Dec 4th's move to NYC...simply bizarre. That would be enough for any article, but the story doesn't end there.
March 4th, 2024 CEO Steve Slilaty buys $10,000 worth of stock at 10 cents each, 100,000 shares. ALWAYS a good sign when a CEO
buys more stock of a company. It's a signal of good things to come, that maybe only management knows. It's really obvious,
though, profitability is just around the corner. The stock price jumps to .084 to end the next day ($8.40 today).
April 1, 2024 The full 2023 earnings report was no joke, it was amazingly positive:
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Sales in 2023 grew to a total of $24,092,787, primarily as a result of a full year of revenues generated by the acquisition of Nora Pharma in October 2022. Nora Pharma's revenues for its fiscal year ended June 30, 2022, were $10,766,982.
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The average 2023 quarter-over-quarter growth rate in sales was 14%.
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Loss per share decreased from a negative $1.76 per share in 2022 to a negative $0.19 per share in 2023.
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American Biotech analysts then stated that Sunshine Biopharma is on the verge of breakeven. They expect the company to turn a profit of US $2.5 million in 2024.
The stock ends the day at .108 ($10.80 today).
The decline mysteriously resumes
100-1 to ratio. April 17th end of day price, now adjusted,
is just $3.85...Most anyone in their right mind would sell their
car, or even home, to buy in....but wait --there's more:
April 19th, 2024 SBFM posts another positive PR :
"Sunshine Biopharma's Nora Pharma Receives Health Canada Approval for Niopeg(R)." Truly a fabulous catalyst for even more
sales growth. The company goes on to say more good news:
"Sunshine Biopharma, through its subsidiary Nora Pharma Inc., has 52 generic prescription drugs on the market in Canada. The Company is planning to expand its product offering to a total of 60 generic prescription drugs by the end of 2024. In parallel, Sunshine Biopharma is continuing its proprietary drug development program which is comprised of (i) K1.1 mRNA for liver cancer, and (ii) PLpro protease inhibitor for SARS Coronavirus infections." Share price after this news? $5? $10?
no. $1.77. Sure, it's a Friday. Beer money. Monday, April 22nd it will surely erupt.
April 22-23, 2024 A1Financial has posted SBFM is the #1 most undervalued stock in its weekend review, agreeing with Aegis Capital, and the experts at Yahoo! Finance that it should have a $300 price target. as of 9:45am EST Tuesday April 23, the price stands at a shocking $1.25. Management at A1 has no position
in SBFM as of the writing of this article, but we will have shortly, ...very shortly. We think we will give the shares out as employee performance incentives. We feel, --just our opinion, not a solicitation to buy-- as they say on YouTube, Reddit WSB and Stocktwits, this one is set for "The Moon"...and will be a true
retirement plan on the CHEAP.
In closing, we wish to state clearly some important verified items to traders: The verified share count is as follows:
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SHARES OUTSTANDING 994,530
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PUBLIC FLOAT 953,390
Also: Sunshine Biopharma currently has no debt on its balance sheet, which is rare for a biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and income from sales--and has no debt burden. This aspect reduces the risk around investing in SBFM.