Bio Matrix Scientific Group, Inc. (PINK:BMSN) Keeps Climbing on Hot Shot Stocks Pump

0BMSN_chart.pngAfter trading heavily in the last two sessions of 2012 and clawing up the chart, Bio Matrix Scientific Group, Inc. (PINK:BMSN) had another massive run yesterday, with nearly 500 million shares changing hands. The stock dipped near the open and stayed down throughout the day, scraping to a close up shortly before the bell.

While BMSN‘s movement seemed hard to explain yesterday, now we have evidence of a pump campaign that touts the stock, run by Hot Shot Stocks. The pump contains several lines of excited babble and nothing else. Hot Shot Stocks obviously think BMSN is a good play because the promoters pulled the promise of ‘merger news’ out of their magician’s hat. The company has not come out with a press release so much as scraping the possibility of a merger, nor has any official source released any information regarding such an event.

The hype being churned around BMSN right now seems to be based on the wild and completely baseless speculation that there might be a merger involving BMSN somewhere down the road. For those who don’t want to buy on baseless rumors, here is a brief rundown of some numbers, the latest made available from the company, who changed its public accounting firm recently and delayed their yearly report for the year ended September 2012:

  • $29 thousand in cash
  • $1.6 million in current liabilities
  • ZERO revenue since inception
  • $522 thousand quarterly net loss for fiscal Q3

Basically pumpers are inviting investors to buy stock in a company that has next to nothing in terms of financials, has never generated revenue and is rumored by unreliable sources to maybe become part of a merger deal. In addition to that, in a filing that arrived just hours ago, traders can see that there are now over 1 BILLION BMSN shares issued and outstanding, compared to 403 million in early November 2012 – a diltution of over 100% in the stretch of a single month.

SAFC_fail.pngPumpers Hot Shot Stocks promoted other medical company fiascoes in the past. A recent one that comes to mind is their pump of SafeCode Drug Technologies Corp. (OTC:SAFC). In their email the promoters encouraged subscribers to ‘buy the dip’, which later led to exactly one day of possible profit before the stock went crashing down and is currently about 80% down from the so-called ‘dip’.

Traders are advised to be extra careful with penny stocks, especially when they are pumped. Do your own research and don’t ride the hype unless you don’t care much about losing your entire investment – solid advice found even in the pumper disclaimers that so few actually read.

You may also like...