Penny Stock Spotlight: Bioflamex Corp. (BFLX)
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    Stock Alert for Bioflamex Corp. (BFLX)

    Bioflamex Corp. (BFLX) is in the business of developing, producing and marketing high performance fire extinguishing and prevention products that are based on environment friendly and biological formulations. With its global scope, the Company primarily aims at penetrating its main market segments with its proprietary Bioflamex aerosols and Sentinel wildfire detection and prevention systems.  BFLX intends to build a leading position within the niche of environmentally friendly fire fighting and prevention solutions in the United States and internationally, both through organic growth and the acquisition of complementary companies and patents. The Company believes the time is right for its products. The general emphasis on environmental protection and the increased focus on health hazards in chemicals used in conventional fire fighting products paves the way for the substitution of chemical-based fire combatant products with “greener,” non-harmful products.

    Share Statistics (08-Mar-12)  
    Symbol BFLX
    Current price $0.14  
    52wk Range: $0.10-$0.59  
    Avg Vol (3m): 8,349,050  
    Market Cap. 12.65M  
    Shares Outstanding 93.00M  

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of Bioflamex Corp. (BFLX) slumped as much as 75% Thursday, giving up big gains made earlier this week. Over 36.73 million shares traded hands during the session, versus the 10-day average of 8.35 million.

    Shares of BFLX have slipped 28.4% in the last five days; 61.4% in the last month; and 32.0% year-to-date.

    BFLX enjoyed investor attention on Tuesday, surging over 247% to $0.52, after the Company announced that it has entered into the concluding stages of negotiations with a potential agent covering major Asian markets.

    Charlottenlund, Denmark-headquartered BFLX is targeting China, India and Pakistan as significant growth markets for the company, especially for its Bioflamex aerosol extinguishers, having realized the growing overall economy and rapidly expanding middle class in these countries.

    The plans for the Company contain sales objectives of around $10 million in the said markets by the end of 2014, the Company said in a statement.  It believes its aerosol extinguishers, for first response against kitchen fires, hold tremendous potential in the three markets, given the nature of cooking traditions where much oil and fat is used.

    BFLX said its management has invested time and energy in identifying a suitable agent for the countries in question and it is now clear that one company is especially well suited, due to its deep experience in the industry and strong decision-making networks in all three countries.  “Having a strong partnership is key to success, and the current negotiations represent a significant step to achieve the company’s objectives for the region.”

    Also on Tuesday, the Company announced its management has planned meetings in Malaysia to conclude negotiations with a general agent prospect covering two more Asian countries, Malaysia and Indonesia.

    Its conservative projections for the said countries show sales of about 1 million units by end of 2014, generating estimated revenues in excess of $8 million. The Company believes the potential sales could be double that figure depending on distribution capabilities. BFLX stated that, as in the case of most Asian markets, the cooking traditions in Indonesia and Malaysia, where much oil and fat is used, compose a highly potential market for Bioflamex aerosol extinguishers.

    In Europe, BFLX on Wednesday announced the appointment of Danish fire services company P.L. Brandteknik as general agent covering the Danish market as well as the Danish/German Femern Belt combined bridge and tunnel project. This agreement will secure participation in the tender bids for the fire protective solutions to be incorporated into the EUR 5.5 billion bridge and tunnel project linking North Germany and Sealand, estimated to represent a EUR 75 million budget covering general fire protection measures, the Company stated in the release.

    BFXL dropped 71.7% to close Thursday’s trade at $0.14.  Over the last 52 weeks, the stock has ranged from a low of $0.10 to a high of $0.59. It is currently trading below its 50-day and 200-day moving averages, both set at $0.35.  Market capitalization currently stands at 12.65 million and it has 93 million outstanding shares.

    Source:

    http://finance.yahoo.com/q?s=bflx&ql=1

    Financial Summary

    BFLX has not earned any revenues since its inception on August 25, 2004, and does not anticipate

    earning revenues until such time that it has fully developed and is able to market its products. The Company incurred operating expenses of about $219.84K from its inception to November 30, 2011.

    BFLX realized a net loss of about $49.00K for the three months ended November 30, 2011, as compared with a net loss of $15.59K for the three months ended November 30, 2010. It incurred a net loss of $235.08K from its inception in 2004 to November 30, 2011. Its losses can be attributed to operating expenses together with a lack of any revenues.

    As of November 30, 2011, the Company had total current assets of about $10.28K, while total current liabilities were about $89.56K.  As a result, BFLX had a working capital deficit of over $79.28K as of November 30, 2011.

    BFLX’s financing activities for the nine months ended November 30, 2011, generated $54.03K as a result of the issuance of its common stock in the amount of $50K and proceeds from a loan from its officer and director in the amount of $4.03K.

    Source:

    http://biz.yahoo.com/e/120113/bflx.ob10-q.html

    Financial Strength (08-Mar-12)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.55 0.73 0.73
    Current Ratio (MRQ) 3.04 1.11 1.10
    LT Debt to Equity (MRQ) 16.10 14.51 190.23
    Total Debt to Equity (MRQ) 18.72 32.70 248.42
    Interest Coverage (TTM) 129.32 1.02 30.31

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    No direct competitor comparison

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