BioMatrix Scientific Group, Inc. (PINK:BMSN) Lingers on Low-Price Buying
The new year seems to be good for pharmaceutical science, as many developers of new drugs and therapies started a steep climb in price, attracting healthy trading volume. Another ticker to share this fate is BioMatrix Scientific Group, Inc. (PINK:BMSN), a stock that traded up more than 57% on Tuesday. But BMSN at $0.0055 also holds the dangerous appeal of a super-cheap offer. 
The latest spike in activity comes with a press release mentioning the filing of a new drug for review with the FDA. But the new drug effect is combined with the residual influence of an Awesome Penny Stocks pump, as BMSN lingers instead of tanking, still allowing a short-term bet on dramatic rises. 
It is difficult to see what resources BMSN has to carry it through the arduous process of introducing new drugs to market. The company delayed twice its official reporting, filing instead a statement of delay. Still, older data show a not so rosy picture:
- $29 thousand cash
- $1.6 million current liabilities
- ZERO revenues generated since inception
- $522 thousand net loss for the quarter ended June 2012
Even weighed down by debt, the company is pinning hopes on its stem cell therapy, currently starting a ten-patient trial with patient-specific stem cells. The therapy bears the name of HemaXellerate ITM and news of trials have surfaced before as well, with so far little promise of marketing coming up any time soon.
Awesome Penny Stocks is a remarkable and unstoppable pumper, which, once it abandoned BMSN, moved to other promising small cap companies. Its current campaign is for Great China Mania Holdings, Inc. (OTC:GMEC), a campaign with a relatively small $12,000 budget. The pump managed to triple the price for GMEC, and we are yet to see if this stock trading for pennies will linger as another easily bought bet.
Stem cell technologies are a common promise among penny stock companies. But the treatments, although sounding promising and well-developed, are a volatile bet. This is also the case of Advanced Cell Technology, Inc. (OTC:ACTC), a penny stock with a similar business plan. Biotechnology companies usually spike when investors cluster around a significant event such as a new testing trial or an upcoming approval from the FDA. But even in those cases, the business reality is not matched to the stock movements, so you need to estimate your own taste for absorbing losses before going for the bio-pharmaceutical hype.
