Panbio (PBO)I've followed this stock for years. They have always...

Panbio (PBO)

I've followed this stock for years. They have always been worth thinking about, because of the great potential their new technologies have. But now they are a buy for sure, which I shall explain in the last paragraph!

Panbio have been around for over ten years. They make diagnostic kits for testing over 28 different disease states and are recognised as the world leader in detecting certain diseases like Dengue Fever.

This base business has normally been loss making, but normally just making a small loss. But what has made pbo of interest is the two new technologies they are developing called Oligo Rapid and Homogeneous Assay.

They are silly names, but could be worth quite a bit in the future. Oligo Rapid is good, but it's Homogeneous Assay Technology (due 2007) that could be the golden goose. It has the potential to replace the world-wide ELISA procedure, which takes hours to complete. HAT takes about 15 minutes. This could easily send Panbio's share price up twenty fold.

Panbio have a great track record of producing new technologies and have already completed a key milestone in the development of HAT. So there is every reason to believe they will be successful.

But the reason that Panbio is a strong buy now is that their base business is undergoing some improvements. Changes being made will make production cheaper and adaptable to world requirements. These changes are already starting to show through. The base business made a profit of $1m for the last three months, which is incredible when you think Panbio has a market cap of less than $19m and so much potential! Profits will probably improve, but even if they don't, a profit of $4m a year for a biotech company worth less than $19m with such potential is amazing. There's always risk, but great odds for sure.