Biozoom, Inc. (OTCBB:BIZM) Breaks Through $4

Biozoom Inc. (OTCBB:BIZM) has been attracting attention from the moment it burst onto the scene. Investors are still buying into the stock resulting in 9,5 million shares despite the disproportionately high price levels. Yesterday’s session was a smooth climb for the ticker and it closed just a little bellow its HOD at $4.20.

To say that the current market capitalization of $255 million is overpriced would be an understatement for a company that at the start of the year had ZERO assets. The performance displayed by the stock, fueled only by the artificially created hype, has nothing to do with the underlying fundamentals of the company and a lot to do with a typical pump scheme.

The Stock Report and Global Financial Insight, both owned by Global Investor Research LLP, have been quite generous with their services. They even issued price target of $10.30 for the stock. In a unique touch, they even launched a radio ad. Such widespread promotional activities must have cost a pretty penny but they disclose receiving no compensation. Coupled with the 20,1 million (adjusted after a 33-for-1 forward split) freely tradable shares sold to private investors for $0.003 and things become quite concerning.

The annual report that is supposed to filed soon may bring an end to this tremendous climb. The ticker will start correcting and when that time comes the fall will be disastrous for the optimistic investors.

Lot78, Inc. (OTCMKTS:LOTED), who moved much in the same way as BIZM and much for the same reasons, managed to reach the unrealistic $23 and were forced to do a forward split in order to deflate their price. Now they have lost more than 80% of their value and are still going down. After a couple of positive days iTalk Inc. (OTCBB:TALK) also suffered a negative session and lost around 9% yesterday.

If BIZM will try to push for $5 in the next couple of days remains to be seen but at these levels investors might start cashing in their holdings. Not taking the hype at face value and doing your due diligence is always a must when dealing with pennystocks, especially ones with an ongoing promotion.