Could Brazil Minerals Inc (OTCBB:BMIX) Go Down The Charts Again
Brazil Minerals Inc (OTCBB:BMIX) is yet another exploration stage mining company in the OTC Markets. What differentiates themselves from most OTC mining companies is the fact that they have actually started making revenue. It is indeed small, but still, it’s something and investors are hoping that they are going to make it big.
The last 5 trade sessions were like a ray of light for the people who have invested in BMIX, as the stock started to go North after a long period of descending in the charts, reaching as low as $0.112. Since the beginning of the month BMIX‘s stock gained 57%, which probably made some people happy.
Yesterday’s session was another success, as their stock jumped another 23% on above average volumes going from $0.2105 at market open to $0.255. The volume was high considering their average of 767 thousand as the total amount of shares that switched hands came at 1.1 million generating a trade value of $292 thousand.
Could insiders be dumping stock? Of course, this is a possibility and we are quite sure that they are not missing an opportunity to enrich themselves. Let’s not forget the hard mailer pump they had (which still might be ongoing) that cost them $1.6 million. After all, we must not forget who would pay that amount of money to raise the price of his stock and with what intentions.
The dumping of stock is probably most visible today and the effect that it has on the stock of BMIX is grim. In just an hour and a half the total amount of shares is closing to half of yesterday’s with 475 thousand that were traded. This is dragging the price down and from $0.255 at market open it is currently sitting at $0.19 or 25% down. What will happen in the rest of the session? Well it can’t be said for certain, but if the dumping doesn’t stop, or at least slow down the movement of their price will continue to go in the same direction.
All in all BMIX is a risky stock. They have some operations, but they only made $5 thousand in the first quarter of this year. It is good that they have a good budget of over $650 thousand, but they have to manage it wisely in order to become profitable. Until then, be sure to do your due diligence and weigh out the risks.
On the other side of things are InVivo Therapeutics Holdings Corp (OTCBB:NVIV) who are having a second session in which their stock’s price is going up and are now traded at $4.28. Also, Norstra Energy Inc (OTCMKTS:NORX) are having a bad time in their first day of trading since they were halted currently trading at $0.40.
