Bio-Matrix Scientific Group, Inc. (OTCMKTS:BMSN) Climbs on Posite News
Investor attention in Bio-Matrix Scientific Group, Inc. (OTCMKTS:BMSN) was at a low after the paid promotional campaign in the end of September. Things changed in the last 2 sessions and BMSN is heating up, however. Where will all this lead.
After the promotion in late-August the stock of BMSN started to collapse and managed to record a single session in the green. The volumes of traded stock were hovering around the ticker’s average and BMSN recorded a decent amount of sessions with dollar volume under $100 thousand.
We can clearly say that the last 2 sessions wen’t very well and the reason for that was the October 9 press release from BMSN that announced a 20 million share dividend to be paid to shareholders. That amount will be distributed from existing Regen Biopharma shares and is equal to 40% of the stock that BMSN‘s subsidiary holds.
This led to a successful mid-week session, when on Wednesday BMSN‘s stock gained exactly 10% in value, going from $0.0019 to $0.0022. The recorded amount of traded shares was above the ticker’s average and was estimated at 85.7 million, which helped generate a mere $162 thousand in trade value with the current price per share.
Yesterday’s session, however, went better as BMSN gained a decent 18% in value. The ticker gapped up and opened at $0.0024 and the huge dumping fiasco in the first minutes of the session didn’t manage to push it down. Despite the large amount of traded shares the stock climbed as high as $0.0029, minutes before 10:00 AM.
After that the ticker continued to move through the day with no significant movements and the amount of shares that had switched hands in the session was estimated at a whopping 165.1 million, generating a trade value of $418 thousand.
The hype, however, may be shortlived due to the financial statements that BMSN is filing, which we covered in our previous article. Biotech companies are indeed an attractive investment, but the reserves BMSN has in cash are one of the smallest in the OTC markets, making it hard for them to support the company’s future activity.
This is the exact reason for the unpredictable movement of BMSN. Unlike companies with a more stable price movement such as Affymax, Inc. (OTCMKTS:AFFY) and InVivo Therapeutics Holdings Corp. (OTCMKTS:NVIV), BMSN simply doesn’t have the money to fund the development of the company and its products.
This is the exact reason why we would advise you to take caution, do a lot of due diligence and weigh out the risks if you have any thoughts of making a play with this particular stock.