Bonamour Inc (OTCBB:BONI) Gets Pumped by Damn Good Penny Picks

Bonamour Inc (OTCBB:BONI) has gone through some unusual and interesting trading over the last couple of months. On December 18 they issued a press release saying that they have received some important certifications which would allow them to export and sell their products in Vietnam and Singapore. As we mentioned in our previous article, however, investors didn’t seem to care all that much. Instead of jumping higher, BONI dropped by around 8% and settled at $0.23 per share.

The lack of news over the following weeks meant that it continued to slide and on January 14, it hit its 52-week low of $0.10. Volumes subsided as well and it looked like nothing could bring the ticker back to life.

On February 10, however, we saw some shuffling. BONI registered no less than six consecutive green sessions and managed to regain quite a lot of ground. The run from $0.12 to $0.25 was aided by a press release from February 13 saying that the company has retained the services of a major advertising firm called Blue C Advertising. A correction, however, seemed inevitable and, sure enough, we saw it over the last couple of days.

Even the PR from yesterday which informed us about another certificate, this time regarding the export and sale of BONI’s products in Malaysia, failed to stop the drop and in just six and a half hours, the ticker lost another 4% of its value while logging a dollar volume of more than $412 thousand.

The news is good and yet, the market is not reacting as expected. What could be the reason for this?

It’s really hard to tell at the moment and some traders think that the stock will eventually make a significant run. If they are right, the current levels could provide investors with what some people like to call “a buying opportunity“. It’s up to you to decide whether they’re correct or not, but while you’re at it, you need to consider one more thing.

BONI is currently the target of promotional campaign. It started on Sunday and since then we have received nearly twenty alerts over the email. The pump is carried out by a range of outfits and according to our database, the budget is $45,000. Damn Good Penny Picks is, without a doubt, the most famous promotional newsletter to take part in the campaign. They also received the largest chunk of the budget – $25 thousand.

Although Damn Good Penny Picks are certainly well known among penny stock circles, their track record is far from perfect. In January, for example, they tried to tout Firstin Wireless Technology Inc (OTCMKTS:FINW). The ticker managed to log one or two green sessions, but the run was extremely short-lived and the slide since then has been quite steep. Forty days after the pump, FINW‘s shares are around 56% cheaper. If anything, Luve Sports Inc (OTCMKTS:LUVE) fared even worse. It was mentioned in one of Damn Good Penny Picks’ alerts back in December but since then, it has incinerated more than 80% of its value.

Will the same thing happen to BONI? On the one hand, the positive press releases we’ve seen lately suggest that the company is moving in the right direction. Only the future financial statements, however, can give us a better idea of how far they’ve gone. In the meantime, keeping the current promotion and all the risks related to it in mind is absolutely essential.