Subject: Hotshot stock report loaded with facts

From: "Growth Stock Profile" <[email-masked]>
Date: Thu, 20 Jan 2005 04:32:41 -0500

Bio-Matrix Scientific Group, Inc.

Symbol: OTC Pink Sheets: BMXG.PK
Industry: Biotechnology; Stem Cell Technologies
Current Price: 0.40

Projected Valuation: 3.50 per share

About the Company:

Bio-Matrix Scientific Group, Inc. is an innovative biotechnology R&D company, focused on the commercialization of new and groundbreaking stem cell technologies.  The Company has focused its initial efforts on the launch of an innovative adult cryogenic stem cell bank which will store stem cell tissues for use in treatment of future diseases and ailments.  The Company plans to launch its initial cryogenic stem cell facilities in mid-2005, and is additionally exploring opportunities for commercialization of new technologies in tissue management, stem cell research instrumentation, and bio-systems monitoring.  With impending establishment of an adult stem cell cryobank, research efforts at the forefront of the stem cell market, and experienced management team, we could see Bio-Matrix Scientific Group emerge as the newest and most dynamic player in the explosive stem cell research market.

Investment Highlights:

Bio-Matrix Scientific is exceptionally well positioned at the forefront of one of the most exciting new frontiers in biotechnology- stem cell research, which has exploded since its inception a mere twenty years ago as a panacea for the treatment of degenerative disease.  While stem cell therapy is still a relatively new concept, expectations are almost universally positive, with research firm visiongain predicting that stem cell product revenues will exceed 10 billion by 2013.  Recently, voters in California overwhelmingly approved passage of Proposition 71, a landmark piece of legislation which provides 3 billion in stem cell funding over the next ten years, and will stimulate a stem cell research boom throughout the state.

With its initial focus on the establishment of stem cell cryogenic storage facilities, Bio-Matrix is additionally well situated in a rapidly growing and commercially successful market.  Until recently, this market has been primarily limited to the cryogenic storage of cord blood tissues, used mainly for bone marrow transplant procedures.  There are over 10 major cord blood banks in the world, preserving cells from more than 35,000 donors with average fees of 20,000 per patient- representing a total current market of over 720 million.  As the public understanding of stem cells increases, and as additional stem cell therapies are developed, we believe that this niche market will enjoy exponential growth.  As it is the foremost stem cell banker focusing on the storage of adult stem cells, an unexplored but lucrative market, we believe that Bio-Matrix stands to enjoy tremendous revenue growth in the near-term period.

The Company benefits from a surprisingly strong (for a Pink Sheets Company) and experienced management team, who have combined financial acumen with scientific savvy to offer a unique and promising model for growth in the stem cell market.  The Company’s senior management team, helmed by David Koos, PhD a 20 year veteran of investment banking, has extensive experience in capital financing and public company management, while its research efforts under the guidance of Dr. Philip Watts (PhD- Caltech) are intimately involved in the newest academic research into stem cell technologies.

Based solely on its stem cell cryogenic storage service, and without considering the potential top line impact of the Company’s efforts in tissue management, stem cell instrumentation, and bio-systems monitoring, we anticipate tremendous revenue growth for Bio-Matrix Scientific Group.  With launch of its stem cell cryobank in mid-late 2005, we anticipate FY 2005 sales of approximately 3.5 million, growing to over 24.7 million in 2006 and 35 million in 2007 as medically-conscious consumers seek to avail themselves of the promise of stem cell technologies.

Relative to a peer grouping of companies engaged in the stem cell research and cryogenic tissue storage industries, who trade at an average price to sales multiple of 8x, Bio-Matrix Scientific Group is prices at a steep discount given its technology suite, management team, and sales expectations  By applying this comparative grouping’s average P/R multiple to the Company’s expected FY 2005 RPS of 0.44, we can arrive at a relative valuation for Bio-Matrix of approximately 3.50 per share- a premium of almost 1000% from current levels.

From the Investor's Point of View: How arrived at our conclusions for BMXP:

A peer grouping of comparative stem cell storage and tissue management companies currently trades at an average price to revenue multiple of 8x.  We anticipate that Bio-Matrix Scientific Group, Inc. will distinguish itself from these comparative companies with superior financial performance and revenue growth.  Therefore, on a forward looking basis and applying the comparative grouping’s average price to sales ratio to the Company’s anticipated FY 2005 revenues, we can therefore arrive at a relative valuation for Bio-Matrix of approximately 3.50 per share; a nearly 10-fold increase from current trading levels.

This publication is an independent publication with the goal of giving investors the necessary knowledge to make rational and profitable investment decisions. Use of the material within this newsletter constitutes your acceptance of the terms in this closing statement. This publication does not provide an analysis of the Company's financial position and is not an solicitation to purchase or sell securities Investing in securities is speculative and carries risk. It is advisable that any investment should be made after consulting with your investment expert and after reviewing the financial statements of the company. The information in this report is believed to be reliable, but its accuracy cannot be assured. Past performance does not insure similar future results. This is not purported to be a complete and thorough analysis of the featured company and recommends a complete review of the Company's regulatory filings at secgov The information herein contains future looking statements and information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding expected continual growth of the featured company. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be future looking statements. Future looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Future looking statements in this action may be identified through the use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions may, could, or might occur. Be aware of an inherent conflict of interest resulting from such compensation due to the fact that this is a paid publication. All factual information in this report was gathered from public sources, including but not limited to Company Web sites, SEC filings and Company Press Releases. This information is believed to be reliable but can make no absolute certainty as to its accuracy or completeness. As with many microcap stocks, todays company has additional risk factors worth noting. Those factors may include an accumulated deficit since its inception, a negative net worth, reliance on loans from officers, directors and a majority shareholder to pay expenses, nominal cash and the need to raise capital. The company may have a going concern opinion from its auditor. In compliance with Section 17b, the publisher discloses the holding of two hundred thousand shares of BMXG prior to the publication of this report. Be aware of an inherent conflict of interest resulting from such holdings due to the publisher's intent to gain from the liquidation of these shares. Shares may be sold at any time, even after positive statements have been made regarding the above company.