TSCI Street Pulse - December 8, 2009

Biomagnetics Diagnostics - UPDATE

The following is an excerpt from a research report published by Emerging Growth Equities. 

The complete update can be reviewed here: Biomagnetics Diagnostics

When we outline the fundamentals at Biomagnetics Diagnostics we feel its is pretty easy to see why we are so excited about this company and its stock. We think shares are worth four times the current value. Here’s why:

• Highly Qualified CEO – BMGP has a very strong leader in CEO Clayton Hardman. He is a former Navy Seal with extensive experience in the medical testing field who is dedicated to seeing the Company’s mission succeed.

• The BMGP Diagnostics Product – Biomagnetics’ product offering is similar to the technology that won the 2009 Wall Journal Innovation Awards. Importantly, however, the Company’s device is a handheld unit that can easily be used by nontechnical lab personnel.

• Partnership with Los Alamos National Security - Biomagnetics has access to technology at Los Alamos National Laboratory and it recently partnered with the Lab to have some of the top scientists in the United States work on future product enhancements. This technology was recently patented in October 2009 and includes the capability to test for multiple diseases from a single blood sample.

• Bright Dairy - China is mandating that all dairy cows be tested for tuberculosis (TB) and BMGP currently holds the contract for this mandate with Bright Dairy, the third largest dairy producer in China.

• CDC Testing in Kenya - Malaria testing begins next month with personnel from the U.S. Center for Disease Control and the World Health Organization; a very strong endorsement, in our view, for the current global focus on malaria.

• BMGP Balance Sheet Cap Structure – The Company has sufficient cash, its financial ratios are strong and debt at the Company is low with favorable convert features. BMGP has a total of 64 million shares outstanding, most of which are restricted, resulting in a low float. The Company has raised cash with minimal
dilution and now has enough funding to get its products to market.

• Market Cap - At Friday's close, BMGP’s total market cap was only $11 million. With Biomagnetics’ promising future, we expect to see a much larger market cap.

• Move to OTC – Biomagnetics has substantially augmented its balance sheet and is currently undergoing an audit. The Company is poised to begin trading on the OTC in about 90 days.

• Recent Company Conference Call – Biomagnetics recently held a conference call with some great information about the Company, its products and markets. The call replay is 1-800-642-1687; pass code 45166038.

• Due Diligence – Personal due diligence on Biomagnetics is very easy to do, including reviews of the IOBS product available on line at the Lab's website. Additionally, the CEO is easy to reach by phone for a discussion of the Company.

• The Bottom Line – In our view, BMGP is one of the best small caps out there, easily worth 4.0x the current share price.

The complete update can be reviewed here: Biomagnetics Diagnostics

TSCI Editorial Note:  Additional research material is available from Emerging Growth Research

------------------------------

Joseph Noel is an analyst with Emerging Growth Research.  Joe is a 29-year veteran in the investment and technology industries.  Prior to founding Emerging Growth Research, Joe was a senior analyst at Pacific Growth Equities, LLC, where he tracked the communications equipment/services and advanced industrial sectors. Prior to Pacific Growth, he covered both the telecommunications equipment and services industries at Hambrecht & Quist and was employed by Gartner/Dataquest as a communications industry analyst.

Mr. Noel received his MBA in Finance from Wake Forest University, and holds a BS in business and economics.  A four-time Wall Street Journal All-Star Analyst, Joe specializes in emerging growth companies in the communications, Internet and advanced industrial equipment sectors.