Quite a Lot of Pumping Around Breezer Ventures Inc (PINK:BRZV)

A couple of weeks ago Breezer Ventures Inc (PINK:BRZV) got a promotional campaign from a few paid newsletters including Wall Street Surfers. We covered the pump and we were quite sure that things are not looking good having in mind BRZV‘s financial situation. Needless to say, we turned out to be right and just three days later, the ticker lost around 40% of its value registering abnormally high trading volume. Now, there is another wave of emails and Wall Street Surfers are again leading the pack.

We decided to do one more check on them and see if we will find anything that could render the promises of the promoters and the optimistic projections of the press releases at least a little bit credible. While doing the research, we stumbled upon a document which suggests that there was a lawsuit against people who were preparing a hard mailer promotion on BRZV. The report that the defendants were compiling was designed to present BRZV as a successful oil and gas exploration company when, in fact, BRZV were anything but successful. That was in 2011, however, so we asked ourselves: “Has anything changed since then?”.

Well, apart from some press releases, no. There is a new announcement every couple of days and each and every one of them is trying to convince us that they are now exploring their properties and that they will soon find millions of barrels of oil. This is all well and good, however, we’re not sure how they are managing to finance their operations having in mind that they were in such a terrible financial state at the beginning of the year. Just four months ago they had:

• cash: $0
• current assets: $72 thousand
• current liabilities: $214 thousand
• revenue since inception: $0
• net loss since inception: $219 thousand

All the news however did have an effect on the stock and the biggest peak was yesterday when they gained a staggering 140% over their previous close. Impressive, indeed, however, we’re still struggling to see how, after eight years of doing nothing, they have finally started working and generating revenue.

And while BRZV have been pretty much idle over the years, the same can’t be said about the promoters. According to our database there has been numerous promotions for BRZV and a quick look at the chart reveals that they all ended in disaster.

That is the main problem right now, while the press releases are full of optimism and while we’re not excluding the possibility that they are true, the constant pumping action from all sorts of newsletters could still adversely affect the stock. In fact, when you consider what has happened in the past, it’s hard to see how this effort will be any different.

The name of the pumpers certainly does nothing to improve the odds. Wall Street Surfers and the rest of the newsletters taking part in the awareness campaign are well-known for their previous failures and BRZV are not the only company that they have featured. Automotive Resource Network Holdings Inc (PINK:ARNH) were pumped not that long ago and the chart on the right shows pretty well how horribly wrong that promotion ended for the people who trusted the emails.

That is why, you should be extremely careful when dealing with promoted penny stocks and especially ones that, like BRZV, rely only on optimistic press releases to keep the excitement around them going.