HemaCare (HEMA)
From S.A. Advisory
Updated from Wall Street’s Best Investments 777, January 20, 2016
HemaCare (HEMA) was our 2016 Top Stock Pick. for January 20, 2016 at a recommended price of $0.44.
The company is a leading global provider of human-derived biological products and services and facilitates the implementation of cellular therapy- based clinical trials. HEMA continues to grow rapidly and found a deep pocket partner that continues to purchase stock in HemaCare at a premium to the current share price. During Dec 2016, when the stock was around $1.06/sh, OneBlood Investments LLP entered into an agreement to purchase up to $5 million in shares of HemaCare’s common at $3.44/sh in 3 installments. The first closing for $2.5 million occurred on Jan 6, 2017 with issuance of 727k shares of HEMA. The second closing was on or about Dec 31, 2017 and OneBlood bought another 363k shares of HEMA @ $3.44 (current share price was $3.02.).
Once again OneBlood continues to aggressively buy common shares from HEMA at prices above the current share price. One has to believe that this is extremely bullish for HemaCare shareholders. One could easily assume that they are a viable insider and when insider’s BUY, this is a very positive sign—especially when the “buy” is dramatically above the current share price.
We anticipate that HEMA will be applying for NASDAQ listing during 2018. Management from HEMA stated the Sales and Distribution agreement between both entities continue to outperform expectations.
Hema has plenty of cash, and revenues could easily surpass $20 million for year ending Dec 2017, compared to $14 million during 2016. The company has shown impressive profits during mid-year and year end and, in our opinion, will continue to grow rapidly during the next few years between 30-50%. Currently there are around 13 million shares outstanding. Visit www.HemaCare.com and review the financials for complete overview of the HEMA’s health.
Even though the stock has climbed almost 10x from our initial investment, we believe that this growth story will continue to expand and the share price with will continue to appreciate. Upon review of the company’s homepage, an astute investor will see that HEMA offers cutting edge products to Pharma’s and Research Pharma’s around the world.
We would not be surprised if OneBlood attempts to buy the company during the next few years or a major Pharma takes it at much higher prices.
We still rate HEMA with a Strong Buy recommendation for continued short- and long-term appreciation. Finally, when the NASDAQ listing is announced, the share prices will appreciate more rapidly and a share price of $10 is not out of the question within the next couple of years. This price target could happen sooner if the company is bought out.
We know that the shares have appreciated rapidly and many Wall Street’s Best investor’s own HEMA at the recommended price, but selling in our opinion—regardless of the gain—is not the direction to take. HEMA is entering a more rapid growth mode and this could be the “score” that many can only dream of!
William Velmer, S.A. Advisory, www.saadvisory.com, 949-922-9986, January 19, 2018