Biomagnetics Diagnostic Corporation (BMGP)

I get emails all the time from members and traders.  I usually enjoy their emails and I have made several “friends” over the past year that I keep in touch with to talk stocks…and sometimes life.

I get emails periodically that pretend to be from an interested trader but are really only penny stock promoters.  I have heard there are promotion firms that can be hired (usually from India) that will post a company on every board or comment site across the web….another reason to NOT trust message boards.

The latest one I got was about Biomagnetics Diagnostic Corporation (BMGP).  I got this long email with a “gushing” summary of the company, links to charts and news and much more.  I said “what the heck” and took a look.

BMGP is in a rush to convince the world that they are the “real deal” with a flood of impressive -looking PR’s and a plethora of promotions.

From reading there info, you could believe that this stock could be a $1 stock very soon.  In fact, the company itself claims that $1 is their goal.    That is a HUGE warning sign right there.

Get traders fixated on the $1 price and forget about the fact that BMGP is not a real company yet.  They have a little cash in the bank ($300K), low debt and absolutely NO experience running all of these Chinese companies they are touting.

Let’s take a look at the chart!

BMGP even has its Investor relations person joining message boards promoting his own stock…..incredible.  The guy is coming across all “warm and fuzzy”,but I ain’t buying it.

The PR’s about their Chinese “acquisitions” are all Letters of Intent…They don’t own anything and the coin they will use to buy anything will be shares of stock.  With O/S of 64 Million shares at the end of last Q, how many hundreds of millions of shares will they have to use to purchase these companies?

I am looking for BMGP to crash and burn in the very near future. This penny stock piece of junk is still on the rise and their is no guessing when it will top off, but be ready to ride it back down.

There are no entry points or exit points with this trade…watch it for signs it is cracking.  Get in…drive it to the ground and move on.

BMGP will be the next pump and dump that Sykes starts foaming at the mouth about….trust me.

Good Luck and Great Trading,

Jeffrey Dean

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