Seeking Alpha

StockWatchAlert's  Instablog

StockWatchAlert
Send Message
We have been profiling companies in the small markets since 1999, we have had many winners and have made lots of subscribers huge money of our trades. We try to pick the “Best” penny stocks or small caps in the market, companies that are on the verge of a break through or that have been gaining... More
My blog:
StockWatchAlert
  • Bizoom Zooms To Zero! 0 comments
    Jun 26, 2013 5:40 PM | about stocks: BIZM

    With all of the problems in the penny stock market, there appears to be one less today, as BIZM gets halted and begins the run towards zero Bid.

    BIZM was halted by SEC in Washington D.C.

    This is the second trade halted Stock I have written an article on in the last few months, the first was POLR. The article I wrote on POLR never got published because after I wrote it, it was halted a day later, so there was no chance of making a short profit, or warning naive investors of the lurking dangers in the stock.

    We profiled the company as a perfect short at around $3.75 a share, and watched as the stock dropped to close around $3.00 the next day.

    If you were lucky enough to find shares of this to short, you should start counting your vacation money now, because the stock will be much lower when and if it opens for trading again.

    The stock halt basically confirms our suspicion that BIZM is in fact nothing more than a shell, and the shares are virtually worthless. In the complaint the alphabet boys say the company improperly relied on 144 to free up the 20million shares.

    So you understand… if a company is a shell, you can't use 144, and the company was listed as a shell in its filings prior to the Biozoom transaction. This means that any shares issued while it was a shell cannot use 144 exemptions for at least a year after the merger has been completed.

    The stock was creeping back up before the halt, and the ads on Google(NASDAQ:GOOG) and Yahoo (NASDAQ:YHOO) had started up again over the weekend, I am sure encouraging the quick halt.

    I like to trade stocks like everyone, but traders should learn to find company's and stocks who truly have some intrinsic value. Even if it is a great business plan, the company still needs to be funded, and structured properly for me to attempt a trade. I have been trading since 1999 and am willing to take on more risk than many should.

    Stay away from stocks at $3.00 that are worth .17 cents or so a share.

    Happy Trading

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: BIZM
Back To StockWatchAlert's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.