Bio-Matrix Scientific Group, Inc. (PINK:BMSN) Goes Down After Pump

BMSN is a biotechnological company that through its stem cell product, HemaXellerate, is trying to treat conditions associated with bone marrow dysfunction, with the overall goal of entering the hematopoietic growth factor market. The latest substantial news from them was the announcement of the issuance of IND number 15376 by the FDA for a proposed Phase I/II clinical trial. BMSN‘s goal is to initiate clinical trials by the last quarter of 2013.

While this helped them gain an 11% increase in stock price back then, it was immediately offset by the publication of their 10-Q report. Looking at the numbers in it, the stock’s continuing downward movement becomes no surprise at all:

• $815 in cash
• $1.8 million in current liabilities
• zero revenues since inception
• $596 thousand quarterly net loss
• $1.3 million net loss for the year ended Sep 2012

Even more worrisome for investors should be the fact that the company’s shares experienced dilution of more than 500% in the last 9 months.

Maybe in an act of desperation, on April 5 a small-scale promotional campaign was started. StockRunway received the relatively small for a pump job sum of $4000. Apparently investors were quite interested in BMSN‘s stock and didn’t need much more evidenced by the volume of more then 178 million shares reached during the last market session. The only problem that remains is the uncertainty regarding the long term movement of the stock. The company has some serious plans for the next two years but for now they are nothing more than a PR announcement. 

Sub-penny stocks are notorious for their volatility. The prospect of future pumps makes BMSN‘s shares even more unpredictable. That’s why doing your own due diligence is required before making any major decisions.