Bio-Matrix Scientific Group, Inc. (OTCMKTS:BMSN) Crashes After Pump

Bio-Matrix Scientific Group, Inc. (OTCMKTS:BMSN) failed to post two positive sessions in a row once again and instead yesterday the stock crashed back down by 17% and returned to $0.0028. The ticker has been fluctuating around the $0.0031 mark for the past two months unable to make a significant move in either direction. Throughout the day more than 148 million shares were dumped on the market, amount that is almost 10 times bigger than the average of 16 million shares.

The crash occurred on the second day of the paid pump that began this Wednesday. Penny Picks and Penny Stock Newsletters, affiliates of Damn Good Penny Picks, were among the first to start touting BMSN. They managed to lift the ticker to an intraday high of $0.0038. Then most of the associates of MJ Capital – PennyStockLocks, StockLockandLoad and StockBomb, joined in for a compensation of $13 500 and the stock quickly went downhill. One of the previous Penny Picks target was Nouveau Holdings, Ltd. (OTCMKTS:NHLI) who also bombed right away under the promotional pressure.

Taking a better look at BMSN‘s fundamentals makes immediately apparent why they need the help of paid promoters in order to attract investors. The company’s business plan is to find or develop drugs in the stem cell area, clear them through Phase I/II medical trials and then sell them to bigger medical companies. For now they are focused on HemaXellerate I used in the treatment of drug refractory aplastic anemia. But before their Investigational New Drug (IND) application can be cleared by the FDA further experiments need to be done.
Two days ago plans for a new drug were announced – dCellVax, a cancer immuno-therapeutic with the eventual goal of filing another IND.

Although the technology undeniably has potential BMSN‘s fundamentals are far from encouraging. According to the latest financial report they finished the period ending June 30 with:

• $10 thousand cash
• $25 thousand total current assets
• $1.5 million total current liabilities
• ZERO revenue
• $278 thousand net loss

Leaving aside the massive working capital deficit and the lack of revenues which are to be expected from a development stage company, the biggest issue standing before the company is the amount of their outstanding stock. Currently they have 1.93 billion shares outstanding out of the 2 billion authorized with numerous convertible notes and a debt to their CEO.

Doing your due diligence is paramount when contemplating investing in the company. The same can also be said for the stock of Alkaline Water Co, Inc. (OTCBB:WTER), who backed by a $3 million pump are once again approaching $1 per share.