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