Awesome Penny Pick Pump of Bio-Matrix Scientific Group, Inc. (PINK:BMSN) Heats Up
On Friday Bio-Matrix Scientific Group, Inc. (PINK:BMSN) shuffled nearly 77% up. The movement was most likely caused by a currently active pump by Awesome Penny Pick. Despite the percentile change, the stock still closed at 2 tenths of a cent.
The pump, as usual, promises quick gain and a breakthrough to new heights on the charts. The pump email is full of the usual forward-looking optimism and not much in the way of financial information or actual performance and hard results. The promoters seem to think chart analysis for sub-penny stocks that are promoted on and off is also fitting, even though chart movement happens largely because of the promo round hype.
Since BMSN filed a delay notification for the 10-K for their last fiscal year, what investors have right now is their report for the quarter ended June 30, 2012. The numbers there can hardly enthuse traders:
- $29 thousand in cash
- $1.6 million in current liabilities
- ZERO revenue since inception
- $522 thousand quarterly net loss
How the company is going to finance its further activities with so little cash is not clear at all. The issued and outstanding stock of BMSN already numbers over 1 billion shares, as detailed in an 8-K report dated January 3, 2013. The situation of the company is not exactly one that suggests a major breakthrough and the previously touted merger news seem to concern a merger with a wholly owned subsidiary – hardly a breakthrough move. Investors may want to take a breather and wait for BMSN‘s annual report which is due tomorrow, if it arrives on time of course. If the pump picks up some steam today, the 10-K may be further delayed to ride the hype before full and more current information is revealed to hopeful investors.
Promoters Awesome Penny Pick previously touted other penny stocks that ended up losing money for investors. One such example is their late summer pump of Empereal Americas, Inc. (PINK:TEXX). The stock is currently over 90% down from the peak of the short pump and trading at under a cent.
Traders are advised to be extra careful with promoted sub-penny stocks. They almost always seem like a very cheap way to make some money riding a supposed upward trend but just as often end up crashing hard as reality settles in, pumping stops and the stocks cool down to their realistic price ranges.
