Bioheart, Inc. (OTC:BHRT) Inches Down on Record Selling
The last days of March are a wild run for Bioheart, Inc. (OTC:BHRT), each day marking a record or a near-record of buying and selling. Although the last fall was a cautious 2.5% on the day, the stock standing at $0.039, 15 million shares were shed on the market and the event could spill over on the next few days. 
Whenever a stock bursts with such activity, a promotion is suspect- and an email at the end of February started a small rising trend. This was helped by a series of press releases on the future business of the company, the last one a very preliminary plan to engage the FDA for one of the company’s therapies. 
BHRT has the ambitious plan to offer cell therapy for irreversible heart damage, but let’s see if it has the financial power to achieve this:
- $39,828 cash
- $268,493 total assets
- $12.2 million total current liabilities
- $17,475 revenues
- $2.6 million operating loss, $4.6 million net loss
As we easily see, the clock is ticking for BHRT to perform or fail, given that its losses and debt are a burden, and the development of a viable therapy a long and risky process. Even the FDA procedure is a very far cry from a marketable strategy, as the company proposed using its therapies for patients that have ran out of other options.
The company reveals 30.6 million shares in the hands of insiders, on 182 million shares outstanding. Most of them were purchased way below today’s market price, and any selling could easily topple a rising trend.
The pumper for this biotech company is Investors Hub, one of the more famous pumpers, which took up the ticker for a compensation of $5,000 coming from paying party Rubicon Capital Advisors. The paying party has a short list of previous picks, a comparatively risky crew of penny stocks that promise more than they can deliver, and their stock moves disproportionately. One of the picks, Immunovative, Inc. (OTC:IMUN) has slid down 80% since its highest levels achieved last fall.
Biotech is a risky pick among small cap companies, with real results slow to come. However, most stocks react strongly on expectations, and drop sharply when the news are contradictory. It is best to estimate if you could afford the losses before believing the hype of a novel therapy, especially if wrapped in a paid promotional email.
