Sunday December 17, 2017

BZIC – Pump And Dump Spotlight

A.J. Watkinson January 7, 2014 Pump and Dumps No Comments
BZIC – Pump And Dump Spotlight

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, 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.

The Wrap Up:

Too many investors get sucked into these nightmare penny stock scams.  They fall for the overly-optimistic projections the paid promoters are selling.  In the search of easy money, investors lose sight of what a real return should be… and end up holding the bag.

When investing in pumped penny stocks, it’s the ultimate case of “let the buyer beware!”

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About The Author

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 the "rat race", landing in North Scottsdale, Arizona. During the past few years, he's worked as the editor of a number of high profile financial newsletters. In this role, he's run trading services for penny stocks, options, currencies, ETFs, and FOREX. While under his direction, each of these trading services had turned in positive performance... something very rare in the financial newsletter industry. In addition, he's been a regular contributor to a number of financial websites- writing under multiple pen names. A.J.'s current goal is to share his real world experiences and success (and failures) in the various financial markets to help others not only make money- but avoid losing it. It's this vision and passion that has led A.J. to launch Most of all, A.J. hopes to keep the little guy from getting caught up in the highly unscrupulous penny stock pump and dump scene.

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