B Green Innovations, Inc. (OTCMKTS:BGNN) Corrects Despite Paid Pump
For months on end the stock of B Green Innovations, Inc. (OTCMKTS:BGNN) has been sitting below investors radars. The daily traded volumes have been minimal at best and some sessions have even ended with absolutely no trades. This week the market finally noticed the company but unfortunately the reasons for the increased attention were far from encouraging – a paid pump and a fluff PR.
After the end of last Friday’s session the pump outfits The Lotto Pick and Nathan Gold decided to begin hyping up BGNN. Of course they didn’t do it for free with both of them disclosing a compensation of $20 thousand. Penny Stock Profile also joined in for the much smaller sum of $2000.
Half an hour before the start of Monday’s trading BGNN decided to break their prolonged silence and issued a new PR message. Although it can hardly be called anything more than fluff it did its job in luring investors in – the stock ended the session with a gain of over 25% at $0.479. The 200 thousand traded shares surpassed the average of the company by more than 13 times.
Encouraged by the impressive performance a lot more pumpers, mainly the affiliates of Galaxy LLC – SecretStockPromoter, Penny Stock Prophet and Penny Pick Finders to name a few, began touting BGNN. With even more artificial hype yesterday’s session registered 713 thousand shares changing hands. Despite the record volume though the performance of the ticker wasn’t nearly as positive. BGNN surged to high of the day of $0.59 in the minutes after the opening bell but crashed hard immediately after that. When the trading came to a close the stock was sitting 5% in the red at $0.465.
If you take a look at the fundamentals of the company it becomes painfully obvious why invenstors have been ignoring it for so long. The latest quarterly report revealed that at the end of September BGNN had:
• $84 thousand cash
• $99 thousand total current assets
• $994 thousand total current liabilities
• $24 thousand net sales
• $99 thousand net loss
It is true that the company is generating revenue through its products but so far the sums have been rather unimpressive. The PR from Monday announced that the management is trying to acquire new product lines but so far no transactions are pending.
In the meantime investors will have to account for the continued dilution of BGNN’s common stock. Just two months ago, on September 26, a massive 1-for-10000 reverse stock split was performed and as a result the number of outstanding shares shrunk from approximately 4 billion to around 400 thousand. Well, as of November 14 there were 110 million outstanding shares. 100 million of the new shares were issued for services rendered while 10 million came into existence through the conversion of notes at a conversion price of just $0.0001.
The paid pump, the millions of extremely cheap shares and the lackluster financials are enough to turn BGNN into an extremely risky choice for investment. It is paramount to do your own due diligence before committing to any trades involving the stock.
