BioNitrogen Corporation (PINK:BION) Gathers Momentum

Although planting season is far off, the stock of BioNitrogen Corporation (PINK:BION) seem to be already sprouting up, adding a further 64% in yesterday’s trading. While the company is yet to record revenues and real activity, it’s been touted in PR messages which livens up interest in its stock. There is also a significant rise in daily trading volume, double the baseline, to around a million stocks per day.

The latest news which probably sparked the climb is the newly-hired Operations Manager, Ernie Iznaga. His task would be to oversee operations and engineering for the company’s new plant in Hardee County, as well as any other plants in the future. BioNitrogen has received an agreement for municipal funding, but the funds are not yet with the company, and construction is still awaiting to happen in 2013.

On its own, the company could hardly hope to build a factory, and shows the following financial data: 

• $8000 cash

• Zero revenues

• $4.9 million net loss

The data are from the end of last year and the company has delayed its filing with the SEC, not showing whether there is improvement that may make its plans sound more realistic. It’s encouraging that the company has shared its patent application number, removing doubts that the process has started, this is no guarantee that the company will receive patent protection. However, the “patent pending” status is for now legally used and not just a trick to attract attention.

The Hardee County authority has approved $2 million for the construction of a factory that will convert biomass to fertilizer. As we mentioned, the money is still with the authorities and not the company. Also, while the production of nitrogen fertilizer from biomass seems viable, there is no free lunch in nature and taking nutrients from another place to transfer them to another is not such a green idea after all.

The company was promoted for the last time in May, with a budget of $18,300 and two promotional emails by Bold Stocks. Among its picks was the heavily promoted Marine Drive Mobile Corp. (OTC:MDMC). Since its peak in May, the stock has lost more than 95% of its value, dropping down from $1.20 to mere cents. In the case of companies claiming potential for future development, it’s best to do your own research before buying the email hype.