As we follow the stock movement, we notice that its price has been going up progressively over the last weeks. This immediately classified BMP among the top NASDAQ percentage increasers, trading above the yearly average.[BANNER]
No other explanation for the price move can be found, except a recent announcement that the buyout of BMP Sunstone Corp. would take place within a few days. However, there is no official comment on this topic by now. Besides, BMP was pronounced as one of the potential gainers on the market, which might have easily attracted investors.
BMP Sunstone Corp. is a specialty pharmaceutical company engaged in the manufacture and sale of over-the-counter medicinal brands for women and children in China. According to the historical records, BMP has had frequent ups and downs on the market before its recent uptrend, which started this month.
The company’s first quarter results for 2010 have pointed lower revenues and net income,as well as declined profitability.
According to its financial report, during the three months ended last March, the company recorded a loss of around $4 million, due to certain debt problems such as “deferred loan costs, debt discount and debt premium, relative to the early extinguishment of the debt under the previously outstanding long term debt.” Though, BMP stated it still had sufficient funds to cover its business activities for at least the next 12 months.
Today, the uptrend for BMP was broken and the company’s future depends highly on the continued growth of Sunstone’s OTC and its licensed products.