VFC's Take on BioElectronics Corp (BIEL.pk)

In response to quite a few readers who were looking at BioElectronics Corp (BIEL.p.) over the past few weeks, here's VFC's take on BioElectronics Corp:

Are you looking for the next CSUH or TTNP? There's a good chance that BIEL will fill the bill- and there's a good chance that investors will be reaping rewards fairly soon.

Let's get the scepticism out of the way first:

- Keep in mind that anything that looks too good to be true usually is, especially in the stock market.

- BIEL is a pink sheet stock, making it a more risky investment than most.

Now let's be realistic:

In this market there are (and have been) more stocks than normal that are (or have been) trading for values that look to good to be true, only to find out that it's not an illusion- they really are that good a value. Take Titan Pharmaceuticals (TTNP), Celsius Holdings (CSUH) and Dendreon (DNDN) as just a few examples of such stocks. All three were great risk-reward stocks that paid off and BIEL is another one that can pay off big time.

I also think the fact that BIEL currently trades on the pink sheets is a positive, not a negative, for risk reward investors. Most investors view the pink sheets as too risky, which means it will fly under the radar, allowing small investors to load up on the stock for a cheap price until big news hits. Once (if) big news hits, the stock could skyrocket over 1000% (at least), as did TTNP.

The perfect storm for success could be forming for this company and it's stock.

With Acetaminophen and other over-the-counter drugs coming under recent heat by the FDA, BioElectronics technology, and therefor their products, could provide a safer and more effective alternative.

BioElectronics has taken a long used medical treatment, electro-magnetic pulse therapy, and miniaturized the entire treatment into a patch that has been demonstrated to reduce pain, swelling and increase the rate of healing. The technology is groundbreaking, in my opinion, and the potential for commercial application is even better.

According to the BioElectronics official website, the company is marketing its products in two product lines, Actipatch and RecoveryRX. The technology has already been approved by the US FDA for some plastic surgery indications and also has approvals in markets around the world for both medical and over-the-counter use.

In the United States, BioElectronics is seeking approval for many other indications, including for both medical and over-the-counter use, and as I said before, with medical narcotics and Acetaminophen coming under fire of late, things could just be heating up for BioElectronics and the Actipatch technology.

I say it often: for the cost of a night out on the town, a small investor has the opportunity to buy a nice chunk of shares of a good risk-reward stock. If it doesn't pay off, you've lost a hangover by skipping the night out. If it does pay off (see: TTNP, CSUH), however, the percentage gains could be huge.

BIEL is trading so low, in my opinion, because of the lack of significant clinical data up until this point. People always get a little bit antsy when something involves electromagnetic pulses is applied to their bodies, but as the safety data has been accumulated and is being put before the FDA for various approvals, the time may be ripe for BioElectronics.

In my opinion, someone is accumulating the stock and keeping the price in a controlled trading range- avoiding any significant spikes or dips in order to keep the stock below the radar.

The volume is growing for the BIEL stock, and the market potential for the product is huge- two things that could equal a lot of dollar signs in the future.

Don't forget to do your own DD, but I like this stock for the risk-reward potential that it holds. To answer the question of the many readers who have asked my opinion both here and on my Seeking Alpha page- VFC says take a chance on this one, nice find.

Disclosure: VFC is long BIEL.