It is unfortunate that small-cap stock fraud occurs in our equity markets. It is all too easy for a thinly traded equity with roughly zero intrinsic value to be promoted by greedy vultures to the unsuspecting retail investor. While small-cap stock fraud will never be eliminated, it is imperative that the innocent retail investor not be duped by these scams.
Bison Petroleum Corp. (OTCQB:BISN) is a name that I believe is currently the target of a penny-stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I also believe that Bison Petroleum Corp. is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent:
Date of Publication
Price at Publication
June 28, 2013
April 26, 2013
$0.15 (did hit $25 in an incredible short squeeze)
July 23, 2013
Feb 25, 2013
Bison Petroleum is a publicly traded oil and gas exploration and development company, based in Salt Lake City, Utah, dedicated to the exploration and development of domestic energy in the Bighorn Basin of Wyoming. More information can be found at their website, Bison-Petroleum.com
No Revenue. Barely Any Money In The Bank. Bright Future?
As is usually the case with these types of hyped up scams, it takes only one quick glance at the balance sheet to realize that the $56M+ market capitalization that this equity commands is beyond ludicrous. With a purported $0 (yes, that's $0) in revenues in the most recent quarter and $57 in cash on hand. I find it difficult to believe that the company can make any moves in the right direction to eventually drill in any of their properties. They really can't and it is my suspicion that the purpose of this company is not to succeed but to sell stock. The recent volume is due to overly bullish promotional mailers being delivered to people's homes.
Bison Petroleum Corp.follows the typical pattern most shells do that end up getting promoted.
#1) Business taken public with no revenues.
#2) Seed shareholders given shares for next to nothing
#3) Change in control
#4) Name and symbol change
#5) Forward split while all the shares were insider owned
Let's focus on what's important if you go through it all you come to a final share count reads as follows.
- Authorized 800,000,000 shares
- Outstanding 40,200,000
- Antonio Martinez Guzman 20,000,000 shares (restricted)
- Private placement shares 2,400,000 shares at $.0375 per share
- Seed Shareholders 16,800,000 free trading shares at $.00125 per shares
- Nelan Advisors Corp (British Virgin Islands entity) - 2,399,998 shares
The most important thing are those nearly 17 million free trading shares. Most companies that end up being promoted usually tend to have little to no trading history. Bison Petroleum Corp. is the same. Those seed shareholders cannot turn their shares into cash unless there are buyers. This is where they turn to stock promoters. Stock promoters get paid to send out overly bullish professional type mailers/emails to retail investors to lure them in. Let me show you what I mean:
You can see that trading in Bison Petroleum Corp. really started on October 28, 2013. Michael Goode blogged about a Bison Petroleum Corp. landing page that went up on the same exact date. Coincidence? Absolutely not.
"Chennai Media Ltd paid the publisher, Basic Resources, LLC the sum of six hundred forty five thousand dollars in consideration."
You can see obviously someone is interested in increasing public awareness for Bison Petroleum Corp. Most likely those seed shareholders with about 17 million free trading shares. Why else would someone spend $600,000 to increase public awareness? It is worth it to them because if they can bring in buyers and liquidate their shares around these prices that can mean about $20 million in profits! Running pump and dump schemes is a lucrative business and that is why we see it way to often. My job is to wake you up!
Possible Trading Suspension Risk?
On August 12, 2013 Bison Petroleum Corp announced they had acquired interest in an oil and gas lease. The lease belonged to Gas Ventures LLC which then signed over control to Nelan Advisors Corporation. Nelan Advisors than sold control of the lease for 1,000,000 shares of BISN stock. In the same 8k we find out Nelan already owned 1,399,998 shares at .0375 per share. We also find out that Bison Petroleum Corp announced that because of the new acquisition they would no longer be considered a shell company. That means that all BISN insiders would have to wait at least 12 months from when they stop filing as a shell before they can rely on rule 144 to make their shares free trading.
Biozoom Inc. (OTC:BIZM) is a recent penny stock that had trading in its stock suspended by the SEC on June 25, 2013 for fraudulently relying on rule 144 to make their shares free trading.
Want to see what happens when trading in a penny stock is suspended by the SEC?
A trading suspension is very possible with Bison Petroleum Corp. but anything is possible. If Bison Petroleum Corp does not get suspended it still spells bad news for shareholders. The insiders will most likely continue to dump their shares into the promotion. When there are no more interested buyers Bison Petroleum Corp will plummet like all penny stock promotion schemes do.
If you own shares of this company, GET OUT NOW. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have showed you that the reason for the promotional mailers indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you.
I contacted both email addresses found on the company's website. Neither of them worked. I called the company and the secretary provided me with another email, which did not work either. I then tried to fax them. The fax number did not work either.