Bio-Matrix Scientific Group, Inc. (PINK:BMSN) Revived by Investor Ideas Mail

Sometimes, a bargain play will become extremely heated, as is the case with Bio-Matrix Scientific Group, Inc. (PINK:BMSN), a late filer and a triple-zero bet that currently broke through the 1-cent level. After five consecutive days of gains on high volumes, BMSN added a further 11% to reach $0.014. BMSN0218.png

Otherwise, the company’s financial filings show that BMSN is heavily burdened by the long research and development period: SUWN0218.png

  • $29 thousand cash
  • $1.6 million current liabilities
  • ZERO revenues generated since inception
  • $522 thousand net loss for the quarter ended June 2012

The latest climbing trend for BMSN may also be ascribed to new promotional efforts, with the latest email coming last Friday. The ticker was sporadically promoted in single-email campaigns a month apart, coming in December and January as well. But the real climb started in February, taking the stock up five times. The last week was marked by healthy volumes as the price gradually increased.

Added to the email campaign are the press releases from the beginning of the months, stating that Bio-Matrix filed a new drug application with the FDA through its wholly-owned subsidiary, Regen Bio Pharma. The FDA procedure is usually long and uncertain, so this news may take years to materialize in the company’s earnings reports.

This time the pump for BMSN comes from Investor Ideas, and its exact compensation is unknown, probably the email is free and used as a bargain bid to boost the track record of the pumper. Generally, promoted stocks tend to correct sharply, and there is danger for BMSN to move back to double-zero price, especially with its current peak position. Time will tell if the new week will continue the trend or will contain more than one day of sharp corrections.

Investor Ideas participated in previous pumps, showing a marked effect in the graphs of small cap companies. The pumper took up the stevia hype, as the natural sweetener became the sweetheart of several OTC-traded companies. Its pick, Sunwin International Neutraceuticals, Inc. (OTC:SUWN) held up well at the beginning of the pump in November, but later its daily volumes shrank to nothing, leaving investors holding a depressed stock. So, before catching an appealing trend or going for the fast gains of a penny play, estimate how much loss you could absorb.

You may also like...