ORLANDO, Fla., March 12, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, announced that it has initiated research on Pressure BioSciences Inc. (Nasdaq:PBIO).
Lisa Springer, MBA, CFA, RedChip Senior Research Analyst, wrote in the report:
"To date, the Company has invested approximately $20 million in developing its pressure cycling technology. Future research and development activities will focus primarily on developing more PCT applications and continuing to develop and improve the Barocycler instrument and PULSE tubes.
"Our model assumes the Company can sell 40 PCT Systems in 2007, 100 PCT Systems in 2008, and 150 PCT Systems in 2009, resulting in growth in the installed base to 300 units by year-end 2009. At a price of about $30,000 per unit, revenues from instrument sales would rise from $1.2 million in 2007 to exceed $4.5 million in 2009.
"With a recent share price of $4.04 and our estimate of revenues of $0.92 per share for 2007, Pressure Biosciences is trading at only about 4x revenues. Other small market-cap companies in Pressure Biosciences' scientific instruments peer group trade at Price-to-Sales multiples ranging between 3x and 12x, with the average being around 10x. We think Pressure Biosciences shares warrant a higher Price-to-Sales multiple (closer to the peer average) and are initiating coverage of these shares with a Speculative Buy rating and a $6.40 one-year price target, based on a 7x multiple of 2007 revenues.
"Another approach which indicates these shares are undervalued at current levels considers the strength of Pressure Biosciences' balance sheet. The combined value of the Company's cash position and investment portfolio presently exceeds $4 per share. At a recent share price of $4.04, investors are paying virtually nothing for the upside potential associated with the products and services of pressure cycling technology."
To receive a complimentary copy of the RedChip Visibility initial research for PBIO, please visit: http://www.redchip.com/visibility/about.asp?page=requestPBIO_initial.
About RedChip Visibility
RedChip Research, a division of RedChip Companies Inc., writes fundamental research on small-cap companies. RedChip's success has been documented in Forbes, Barron's and the Wall Street Journal. RedChip Visibility provides small-cap companies access to both professional and individual small-cap investors by holding conferences throughout the United States, producing online corporate visibility programs, and writing company sponsored research.
RedChip Visibility Research Disclosure
The analysts contributing to this report do not hold any shares of PBIO. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. PBIO paid RedChip Visibility $28,000 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility, a division of RedChip Companies, Inc., has been contracted by Pressure BioSciences Inc. to increase investor awareness of PBIO to the small-cap equity community.