Readers Respond: BIEL, NRIFF

BIEL.pk, NRIFF.pk: A comment from Alejandro regarding BioElectronics and Nuvo Research:

Hi VFC
I added some shares of Biel to my position at 0.06 to use for speculative in and out move. I don´t see Biel going to much lower, and I think any news will rise the price to the 07-08 range... Do you agree with that? Is a good strategy, or I´m doing a nonsense move (I will maintain my base of biel safe).
On the other hand, I didn´t sell Nriff because I didn´t reach my target price and now I believe that Nriff is more secure than other investments... I will practice my patience with this one, and wait it reaches a good and accurate level (since it has received the approval, I´m waiting for a 0.75 price).
Thanks for the good work.

VFC's Take:

BIEL: In regards to BIEL, I also took the opportunity to add shares at six cents and I am also prepared to add more if the stock dips down to five cents. Any lower than that would be an absolute steal, in my opinion.

With FDA approval news pending and the dreaded "Caveat Emptor" rating recently removed from the company's Pink Sheets stock symbol, BIEL could move up in quick fashion when the negative trend turns positive.

There's no sure thing in the world of investing on the basis of FDA approvals, but Actipatch has already been proven as safe and effective and is a healthier alternative to Acetaminophen and Ibuprofen - as is being demonstrated in an ongoing study that is comparing Actipatch to Extra Stregnth Tylenol. Based on those facts, I like the chances of the pending FDA applications coming back as approvals.

Over the long run, ActiPatch could gain traction on the world market as a safer alternative to Acetaminophen and other pain and inflammation treatments, and that would bode well for shareholders of BioElectronics.



NRIFF: As for NRIFF, I also contemplated selling early on Thursday morning after news of the Pennsaid approval hit, but I decided to wait it out as I now see the stock as a safer investment than it was before, and one worth holding as a potential growth stock since Pennsaid will be on the market in the first half of 2010. I think that NRIFF could become an easy double from these levels, if not more, by they time Pennsaid hits the market - if not by the time royalties start rolling in.

In the meantime, the trend has been for "FDA approval" stocks to trade down after the approval news, and NRIFF has stuck to the trend. I actually don't mind trends like that because it allows the small investor to buy into companies with already approved products for decent prices.

That being said, I'm willing to add to my position if we see the low thirties again.
Look at NRIFF as a poor man's BDSI right now; both stocks traded down after positive approval news and while I think that BDSI has the potential to realize more significant gains over the mid to long term, NRIFF is more affordable for the small investor and has a chance to post at least a double in its own right over the same time frame, in my opinion.

As always, this is all just my opinion - do your own DD before purchasing any stock.

Disclosure: VFC is long BIEL and NRIFF.