A.J. Watkinson's  Instablog

A.J. Watkinson
Send Message
A.J cut his teeth while working for more than 12 years on the corporate side of the financial services industry in the suburbs of New York City. In addition, A.J. has successfully traded stocks, options and currencies as an independent trader since the late 90's. Eventually A.J. moved out of... More
My company:
Penny Stock Reporting
My blog:
Penny Stock Reporting
My book:
Penny Stocks To Watch
  • Beamz Interactive – Pump And Dump Spotlight 0 comments
    Jan 8, 2014 1:51 AM | about stocks: BZIC

    Beamz Interactive - Pump and Dump Spotlight

    In the world of penny stocks, you're sure to find oodles of great, unknown companies to invest in. But there are also penny stock scams designed to bilk hard-earned cash from investors. And usually you'll know its hit you after you've watched your investment evaporate into thin air!

    We know what to look for, and tell you who's out there pumping stocks using paid promoters.

    It's our job to expose penny stock pump and dump scams…

    And we take real pleasure in putting the smackdown on the latest penny stock pump and dump scams.

    As you read, you'll see the big red flags we've come across on these companies. And with all the great penny stocks out there… there's no reason to put a single dime into any of these companies!

    This week, we're exposing a pump and dump scams on: Beamz Interactive, OTCPK:BZIC

    Well, if you buy this stock don't say I didn't warn you- because there's nothing to like about it… fancy apps or not!

    Red Flag #1: Paid PUMP!

    Small Cap Financial Wire has been paid to promote Beamz Interactive. Here's what I dug up in their disclaimer…

    "SCFW and or its affiliates has been compensated by Beamz Interactive forty five thousand restricted shares per month for three months of advisory work which has expired and has signed a new agreement for twenty five thousand restricted shares per month for a six month agreement"

    If you can't read the word math, it says 45,000 restricted shares a month in the past- and 25,000 shares per month for six months! I'd think it must be hard to write unbiased research when paid this to support the share price!

    Red Flag #2: Horrible Financials

    The only glimmer for BZIC investors is that they actually report to the SEC. The bad news is the Beamz is in a deep hole and has a $40,000 bridge loan due to pay out this April.

    Here's some more of BZIC's financial nightmare-

    • $2.1 million net loss for the 3 month period ending September 2013, or a $0.09 per share loss.
    • Recent 3 month gross sales of $9,523 for a gross profit of -$7,065. Meaning their cost of goods sold is greater than what they were selling it for!
    • $19.7 million accumulated deficit, with $1.2 million in current liabilities

    With just over $12,000 in cash on hand, it may be pretty hard to pay that $40,000 coming due in April… especially while burning through cash like they are!

    However, things could theoretically change for BZIC…

    But will their fortunes change fast enough is the million-dollar question. The company is pinning all hopes on the success of their apps at the upcoming CES show, and their relationship with a celebrity endorser. Here's what they say in their latest press release…

    "We are devoting significant resources to raising brand awareness for our mobile interactive music entertainment applications, in addition to leveraging our partnership and product endorsement with Flo Rida."

    That sounds great and all, but here's my bottom line…

    We still can't eliminate a paid stock promotion is going on for BZIC. And nothing will change their massive accumulated debt and lack of operating income!

    For these reasons alone, I'd leave the stock off my "buy" list.

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

    Stocks: BZIC
Back To A.J. Watkinson'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


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.