By popular demand and continuing interest in three emerging micro-cap stocks we are updating coverage. This is triggered by news that saavy life science investors are making an initial investment in Vermillion (VRML) of $13.2M with potential including warrants totaling $31.5M before transaction costs. We provided coverage last year (see below) on BG Medicine (BGMD), Response Genetics (RGDX) and Vermillion (VRML) and concluded that RGDX offered the best value and we were right because at $1.15 the stock had upside for traders. Now that both BGMD and VRML are off the lows of our last coverage on 11/14.12 we need to look at all three stocks again with a focus on revenue and balance sheet.
The bull market in life science stocks may be finally shifting to emerging small company stocks as we witnessed at the recent Roth Capital Conference in April. Reverse mergers have been on the increase and it has been shown that having a public trading stock offers significant advantages over private funding. The IPO funding window has been open only to larger offerings or companies with substantial sales or drug pipelines.
All three of these stocks now need to be on your radar screen and I will provide an update on the article below by Saturday. At the present time only RGDX is in our diagnostics and tools portfolio.
Review previous posts on Raygent and Seeking Alpha: