If you failed to capitalize on the success of BioNeutral Group, Inc. (OTC:BONU) last Thursday, you will most probably have to wait for a little while before you get a second chance.
Shortly after the company announced a significant expansion of its managerial body on Nov. 3, BONU stock enjoyed intense trade. As a result, BONU stock soared by a staggering 31%, closing the session at a 15-week high of $0.23 per share. What is more, the price jump is all the more impressive in the light of the huge volume that traders generated on that same day. A total of 670 thousand shares of common BONU stock changed hands, which is a new eight-month record for the company.
According to the official press release, the changes in management were aimed at providing a better positioning of the company’s infection control products and toxin neutralizing agents on the health care and government defense industry among others.
Based in Newark, BioNeutral Group, Inc. pretends to be a technological life-science company focused on developing novel platforms to neutralize contaminants, toxins, as well as a number of microorganisms. Currently, the company has two product lines on the market: Ygiene (R) and Ogiene (R). The former has been approved for sale on the German, French and Birtish markets.
BONU managers claim that their products outperform the products of their competitors both in terms of efficacy and speed. Judging from its financial numbers, however, this notion might seem a little bit exaggerated. In a nutshell, while the company’s total revenue has been on the increase for the last three quarters, it continues to accrue significant losses. BONU finished the quarter ended Jul. 31, 2011 with a net loss of $640 thousand, which barely marks a 3% improvement in comparison with the same quarter of 2010. Moreover, this is by far not the first time BONU has registered a negative quarterly financial result.
Even if the company’s products were as big as its management believes, BONU has so far failed to conquer a market share that is big enough to beat its competitors. Rather, the situation is quite the opposite. To maximize shareholder value, the new management team will either have to improve the products’ quality, or put additional effort to popularize them among its target customers.
