VPRS - Reverse Merger With MediPharm Biotech Pharmaceuticals Co. Ltd?

There is almost nothing more breathtaking in this penny stock market then watching a reverse merger type stock run farther and higher than anyone's most wildest expectations.  One only has to go back to earlier this year when GWAY ran from $.01 to over $5.00 in the span of three trading days, to see the type of gains that these reverse mergers can provide.

If you recall the day GWAY's run first started, as I do, GWAY issued an 8-k before the market opened. Until the press release hit the wires, later on in the day, GWAY only traded up a few ticks from $.01 to $.03 a share as most traders ddn't bother to look at the 8k, or thought it was no big deal.  Boy were they ever wrong.   When the press release about the merger hit the wires GWAY exploded on a run that investors dream about.  Up until the press release it seems only a few people had fully digested the 8k filing, which is what I see happening right now with VPRS.  (Below is a chart of the GWAY reverse merger run.)

Yesterday VPRS issued an 8k, a change of CEO and ownership.  Essentially, judging from the 8k, the shell was purchased for 35 million shares of stock, at what price we do not know.  What we do know is that the new CEO is also the CEO of MediPharm Biotech Pharmaceuticals and they expect to post significant revenues in the years ahead.  I could be wrong, but putting two and two together here is not that difficult.  Per a recent company profile MediPharm Biotech Pharmaceuticals  is a private company.  VPRS is a debt free SEC reporting shell stock with over $100k in cash on hand.  It appears MediPharm Biotech Pharmaceuticals  is reverse merging into VPRS and bringing value into the shell.  This value is already starting to be reflected in the share price.

Here is the good stuff:

MediPharm plans to invest in Radiation-Protective Fa-cilities (RPFs) in 150 China Tier 3 hospitals, with each hospital requiring investment of $75,000 for a total of $11.3 million. Vivatuxin® is expected to generate $45.1 million revenue and $13.8 million net profit in 2011, $92.8 million revenue and $36.1 million net profit in 2012, and $143.3 million revenue and $52.1 million net profit in 2013.


Also:


Through a strategic marketing collaboration study with the Ministry of Health of China currently covering 101 hospitals, the company has agreements to supply 20,000 doses of Vivatuxin®, priced at $3,000 each, used for the treatment of advanced lung cancer patients, who have previously failed at least one course of chemotherapy, and is negotiating collaboration with additional 50 hospitals.

These are some pretty impressive numbers and are found here (click to get taken to the document).

These numbers were put together less than a year ago, and now we find this company going public.  This has not been pr'd yet and if this news does get pr'd... well we saw what happened when the pr for GWAy came out.  Right now anyone that hasn't read the 8K has no idea what is going on with VPRS.  I think the reverse merger is certainly what is happening here and could propel the stock to much higher levels.  With the current share structure and financial projections, VPRS is a stock that could really surprise going forward.

These reverse merger stocks are some of the most explosive out there.  Right now we have little to go by other than some recent financial projections.   A lawsuit that comes up when you search the company and CTL was resolved favorably in 2009, so that is not an issue.

Speculating on just how big this could be is the fun part.  We've seen stocks like GWAY and TMSH run far beyond our wildest expectations.  Could VPRS post a similar type move?  Absolutely.  We've already seen this year that anything is possible.  Right now we have some nice information to nibble on which has peaked our interest.  Judging from the revenue projections MediPharm Biotech Pharmaceuticals Co. should bring tremendous value into VPRS and this stock should be added to your watchlist going forward.

TLAN - Chart Update

TLAN hit $.0042 and closed the session at $.0041 on nice buying volume.  The stock looks poised to break out as it held above its 200 DMA, a very bullish sign.

May 6th Winners and Losers

FOR THE FULL LIST OF WINNERS AND LOSERS CLICK HERE

Today's Winners: TCLL +190%, FGBF +166%, VPRS 114%

Today's Losers : ADLS -68%, PPLB -46%, SIPC -40%

Thursday's Stocks To Watch -BRZL, KING, ICBT, EXTO

BRZL should make for a potentially profitable trade tomorrow, read more here

KING the company's plans would bring roughly $20 million in annual revenue, which means KING shares are undervalued at current prices. I don't expect the stock to trade at these levels much longer.

ICBT closed right near the high of the day, with a day of impressive buying pressure. Holding onto a 300% gain can be tough to do in this market, but we've seen stocks run even higher the second day of a rally. ICBT deserves watching tomorrow, which should determine if today's big move was a one day event or the start of multi-day rally.

EXTO huge volume for the stock toda, it came back strong to close up 5%. Tomorrow a vital day for this stock and if it gets going out of the gate I think it has a very good chance at testing and breaking today's highs.

BRZL - Could Make For An Interesting Trade Tomorrow

BRZL closed down again today finishing the session art $.0104. Looking at the chart, BRZL sits right on the bottom of its trend line, a break below $.01 tomorrow would set up BRZL for further declines. Also note the 50DMA is $.009 and a break through that figure could also trigger more losses.

What I would look for tomorrow is the stock holding above $.01. If I were to trade BRZL tomorrow and beyond, I'd want to be trading it over $.01 and to possibly new recent highs. The trend is still up and I think there is a very good chance BRZL posts gains tomorrow for investors. I think the stock could see $.015 - $.02 before weeks end if support holds at $.01.

May 4th Winners and Losers

For the Full List Click Here

Today's Winners: ICBT +250% PURO +200% AGOE +148.75%

TOday's Losers: PREA -65% MGON -59% OHAQ -55%

Wednesday's Stocks To Watch - TLAN, APRM, THMRQ, EXPH

TLAN accumulation of this stock, according to the charts, is underway as investors have started to realize the inherent value in these shares.  I think its only a matter of time before TLAN's share price is more reflective of a company that is profitable, reducing liabilities, increasing assets, and growing shareholder value.

APRM this stock continues to impress.  With projected revenues approaching $13 million shareholders are looking at over $.20 a share in potential revenue.  At $.0049 this stock ,in my view, presents a great investment opportunity.

THMRQ a recent lawsuit has helped draw traders into this stock.  The money volume shows tremendous demand and I would not be surprised if this stock broke out again tomorrow.

EXPH every stock will have its share of investors that have lost money.  It is almost inevitable in the penny stock market that people will sell for a loss and be unhappy with a stock.  Many investors/traders bought EXPH at $.03, $.02, $.01 a share and have since sold for a big loss.  EXPH, right now, looks to be turning the corner, with a new CEO at the helm.  The losers in this stock will try to dissuade anyone from buying EXPH again.  It is only natural.  With EXPH I firmly believe that another mans loss is another mans gain.  In this case those that sold for a loss down here, are rewarding those with the fore site to see the impending rally in this stock by selling them cheap shares.  I think EPXH sees $.001 and better short term.  If you think those that sold for a loss are crying now, just wait until EXPH really starts to move.