BNT

[Michael]

BNT seems to be ready for break out from a solid base between 11 and 12. They have announced very good results from their PhaseII trials of their Intranasal spray for Diabetes today.

Here are a few highlights for those who don't know the stock:

1. Sales increased with 40% in Q1 2005 compared to Q1 2004

2. Significant increase in international business

3. Generic version of Omeprazole has just been approved for UK (this is their largest product!) BNT has submitted patent applications for producing large quantities of this and other gastrointestinal products in a very cost- efficient manner compared to their generic counterpart.

4. They have alliances in Portugal, Greece, UK, Germany, Austria, Morroco, Poland and the Czech republic for distribution of their products (expect international sale to increase even faster than what we saw in Q1)

5. Spanish subsidiaries have executed a total of 129 license agreements. While 62 of these agreements are pending regulatory approvals, 67 of these agreements cover actively marketed products that are generating revenues.

6. BNT has successfully an intranasal spray in phase II for delivery of insulin. SG Cowen analyst Ian Sanderson sees inhaled insulin eventually penetrating up to 20% of the Type 2-diabetes market, with peak sales of about $2.8 billion overall. This product alone should warrant a very significant increase in the value of BNT. (and when I say very I mean it!)

7. BNT is a clear leader in the application of Nanotechnology in the pharmaceutical field. According to Robert Gyurik, Bentley's vice president of pharmaceutical development at BNT: "Nanocaplet technology may prove to be a core-enabling technology that can change the way drugs are administered." and  CEO james Murphy predicts has said that:"Bentley's technology is far different than previous nanocapsules, The ability to deliver substances at the molecular level means lower doses might be administered for the same therapeutic effect." The Nanotechnology market is forecasted to be a 950 billion industry in 10 years with the pharmaceutical industry as one of the main drivers.

8. Insiders are accumulating shares at these levels

9. Glaxo suit concerning Paxil has just been dismissed

10. The company has practical no long term debt (331K) and 36 million in cash.

11. No brokerage firm is currently recommending the stock which has allowed this tremendously inefficent pricing of Bentley to develop.

12. Bentley presented positive data this weekend at the ADA conference in San Diego.

13. Over $40 million NOL carry forward to be applied to US operations. As US ops. shows a profit, the first $40 million is tax free.

14.Almost $5 million in deferred income sitting on the balance sheet which will be applied to the income statement over the next 12-18 months.

15. Entry into the US generics market through Perrigo.

16. Double digit royalty on Testim, a product marketed by Auxilium (AUXL). Testim has shown a steady growth rate and now Oscient Pharmaceuticals has added to the marketing effort. 250 Oscient sales reps. are now promoting Testim. This increase in sales force,in effect, triples AUXL current number of detailers.

17. Sizeable long term holders of the stock (Citigroup and Vice Chair McGovern) hold over 5 million shares out of 22 million. These two holders have added shares over the last year.

18. Analyst coverage is weak with two marginal Wall St. firms following the stock. This opens up Bentley to potential coverage by larger institutions and thus a wider field of investors.

Mike

[Ramsburg]

I must applaud you Michael !

You have here a quite impressive approach on BNT.

The technicals are very nice, this stock is on short term bullish mode, and it's probably changing the mid-long term scenario as well. We can see Thursday's breakout with increasing volume, Friday was a an atypical day, but we got something here.

Thanks for your input; I'll put this one on my watch list.

Best regards,

[The_Smaker]

nice 

[setravis]

Looking Good..............Mike........

10c vs 4c Y/Y on strong sales in Spain

Bentley Pharma jumps on strong quarterly report (BNT) -- Shares of Bentley Pharmaceuticals (BNT) leapt 22.7% to $9.30 in late morning action on Thursday, putting the company at the top of the New York Stock Exchange's percentage gainers list. After Wednesday's closing bell, the Exeter, N.H., drug and drug delivery technology company posted earnings of $2.2 million, or 10 cents a share, up from a year-ago profit of $800,000, or 4 cents a share, and a nickel ahead of Wall Street's consensus estimate. Revenue jumped 40% in the latest three months to $24.2 millin from $17.3 million in the same period a year earlier. The company attributed the strong results to continuing sales volume growth for certain products in Spain, the strengthening of the Euro, and increased royalties from Testim, the first product to use its CPE-215 drug delivery technology.

[Michael]

We are in the start of the earning period and BNT should soon announce the date for their earnings. They exceeded expectations with 100% last quarter . I don't expect that will be the case this quarter but less can do!

The analysts are forecasting 10 cents (the same as last quarter) and without raising expectations too high we should be able to meet that and maybe a bit more.

BNT is one of my core holdings and as long as the stock continue as expected I do not follow it closely. Since we last talked about BNT they have been added to Fortunes 100 fastest growing businesses as number 37: http://www.fortune.com/fortune/fastestgrowing/snapshot/0,15615,38,00.html

BNT is also number three on Businessweek's three best Drug Companies.

It is still trading in the 10 to 12 range. All in all a great company at this level

[Michael]

BNT has announced that earnings will be out on Wednesday after the close. The stock increased 5% just from the thought about the earnings 

The average analyst EPS estimate is 0.10 according to Zacks. Last quarter they exceeded the earnings forecast with 100%. I don't expect this to happen this time aorund. The 0.10 forecast represents an increase of 42% compared to same quarter last year so the bar is raised high.

As we have seen with VPHM insider activity can however be a good indicator for the development of earnings and the last insider activity was a buy of 9000 shares in June at a price of 11.85. Todays price is 11.42.



If the insiders believe in the company who am I to argue!

[phabrux]

Nice pick Mike!

Are we already at the bottom  of the  right shoulder of BNT?   If Yes, the
chart looks  very bullish  to me.  This TA buying signal would be another
reason(19) to call this a good Pick!

As a newbie I haven't applauded or smote anybody yet!
Your nice pick is a opportunity for me to change that!
As the first 3TOS to be applaud from me, you don't mind being a guinea-pig, do you?  Lol

Phabrux

[Michael]

Hi Phabrux,

Thanks for the applauds and especially for pointing ou the Head and Shoulder formation. I have to admit that I hadn't seen that but it is pretty clear with your guide lines!

We will se on Wednesday!

Mike

[cmshop]

Michael, your chart is very interesting. What kind of software do you use to get the chart?

[Michael]

Hi cmshop,

I have good news! This is a free service from Smart money: http://yahoo.smartmoney.com/eqsnaps/index.cfm?story=insiders&symbol=vphm (I am showing WPHM as you have the chart from BNT in this thread). This is a must site. I never buy shares if insiders are heavy sellers. (some selling is OK they also have to live). Insider buying is beautiful

Let me give you some of my other favorite links:

For TA I am using: http://www.stockta.com/cgi-bin/analysis.pl?symb=rita&num1=13&cobrand=&mode=stock Great site for finding resistance and support levels.

We all know stockcharts but are you using CandleGlance: http://stockcharts.com/candleglance/?aob,VPHM,ESI.TO,NLG.TO,GIGM,IMOS,DNDN,RANGe,AMLN,BNT|B|B14 The perfect place to get a quick overview of your charts.

By the way this is an amazing site . Try to have a look at the chart school: http://stockcharts.com/education/ or their stock scans: http://stockcharts.com/def/servlet/SC.scan

For short interest this is the site: http://www.nasdaqtrader.com/asp/short_interest_resp.asp?searchby=Detail&IssueID=15312 they have data before Nasdaq (don't ask me how!)

For research and stock screening I prefer MSN money: http://moneycentral.msn.com/investor/home.asp

The list could go on but these are some of the best sites.

[cmshop]

Very interesting. For insider trading, I use several other websites, like
http://www.insider-monitor.com/
I also implement an web application myself to get the real-time insider buying report directly from SEC website.

Can you share more on how you use those websites to filter out some good stocks for real trade?

[Michael]

Earnings are out and they are even better than i thought!

BNT beat the expectations with 20%. Total revenue grew 34% and operating income grew 54% (80% for H1!!!).

A few quotes:

We have also signed a license and collaboration agreement with Dong Sung Pharmaceuticals in South Korea to assist us in the future development of our intranasal insulin program which will be designed based on the clinical study results obtained in India. Dong Sung will ultimately market our product in certain specific geographic areas. We are also in discussions with pharmaceutical and biotechnology companies to form additional strategic alliances to facilitate the development and commercialization of other products using our drug delivery technologies."

Yes - this is an insulin spray and not only do they seem to be on schedule with the commercialization of the product but they are also looking for strategic alliances.

We are focusing efforts on the development of our Nanocaplet technology applications in drug delivery. Our initial efforts are concentrated in encapsulation of peptides and characterization of the formulations in animals. Publications have been submitted and accepted for presentation at the American Chemical Society meeting in August."

BNT is the leader in Nanotechnology in the pharmaceautical industry and nobody knows about it. Hmmmmm.... that might change in August.

And finally the best from Michael D. Price the CFO:

Year to date revenues are up 37% and net income for the six months has more than doubled to $4.8 million or $0.21 per diluted share. And we expect the second half of the year to be better than the first."

It is hard to believe but when it comes from the CFO there might be something about it!

[Michael]

Bentley Pharmaceuticals Named One of FORTUNE's 100 Fastest-Growing Companies for Second Consecutive Year

Wednesday August 31, 11:20 am ET

EXETER, N.H.--(BUSINESS WIRE)--Aug. 31, 2005--Bentley Pharmaceuticals, Inc. (NYSE: BNT - News), a technology-based specialty pharmaceutical and drug delivery company with a growing branded and generic product line in Europe, today announced that it has been identified by FORTUNE magazine as one of the 100 Fastest-Growing Companies in the United States.

This is the second consecutive year that Bentley has been included on this list. In compiling the list, FORTUNE asked Zacks Investment Research to screen for US companies with a market cap of at least $50 million, at least $50 million in revenues over the past four quarters, and 25% or better annual growth in sales and earnings per share over the past three years. The final ranking reflects equal weighting to growth in revenues, earnings per share and total market return for three years.

James R. Murphy, Chairman and CEO of Bentley Pharmaceuticals, said, "We are very pleased by the recognition that inclusion in this prestigious list represents. Over this three-year period, our earnings per share and revenues have grown as we have expanded our business in Europe and positioned ourselves to execute on our strategy in the United States. Bentley's goal is to continue on this growth path in part by taking advantage of drugs that come off patent in the markets we currently serve. We have now executed 141 product registration license agreements, of which 62 are currently pending regulatory approvals or patent expirations and, if approved, are currently expected to contribute to our future growth."

Bentley continues to execute their Business plan and are creating exceptional growth every quarter. The only thing that this company is missing is attention from the investment community.

They are presenting at Roth Capital Partners New York Conference on September 7, 2005 so that will hopefully spread the word.

Mike

[Michael]

Well it is probably not a secret any more for the members of 3SOF that I like Biotech. But my favorite choice might still come as a surprise. It is not VPHM, AOB or SVA (even though all of them are must have stocks!!!) Nope it is Bentley Pharmaceuticals

It is not because of their stellar financial performance but let me anyhow show a few highlights:





It is nice to see that BNT can grow their bottom line but even more important that they can finance the development of their pipeline without having to sell out to big pharma (same as VPHM).  But the real reason that I like BNT is because of their pipeline, which is mind bubbling.

Nanotechnology is expected by several research institutions to be the biggest revolution in the pharmaceutical industry in this decade and according to my research nobody (not even the big pharma's) have a technology that is as promising as BNT:



The value of this product is impossible to estimate so let me not even try.

But this is not all. BNT is also leading in Intranasal Insulin Delivery:



This is easier to put a value on: The total US market is 2 billion and the world market would probably be around 5 billion.

And finally their Antifungal Nail Lacquer. It doesn't sound too exciting but again the potential market is huge (2 billion in US alone).



I have already described the other 15 reasons why BNT is a strong buy previously so let me just finish with mentioning the market cap: $259 million - as said mind bubbling

BNT might not go up today or tomorrow not even this year but for me this is a must have in my portfolio.

[usedcasting]

Great coverage. Thanks Michael (App)