One of the hottest penny stocks from the beginning of the month might have to use their own product on their share price as the OTC Bulletin Board listed Bioflamex, Inc. (OTCBB: BFLX.OB) has given back 89.83% since it hit its high of 0.59 on March 7. OTC stocks can be somewhat volatile at times, especially when they have no revenues and are being traded strictly as momentum stocks do. Investors trading penny stocks may be familiar with a very similar company to BFLX, GelTech Solutions (OTCBB: GLTC.OB).
New penny stocks are even harder to gauge and after having volume on BFLX, one of the top 10 penny stocks traded yesterday, breakout above 30 million shares traded the following two trading days, BFLX CEO was forced to address the issue.
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Penny stock trading can be tricky when having access to real-time data regarding short interest in the stock is hard to come by. Statements were made claiming BFLX had a very high volume of short selling which negatively affected BFLX share price.
BFLX is very similar in respect to the industry to another penny stock, GLTC, which we profiled here back on January 20. GLTC ran from 0.60 when we profiled it to 1.34, a 123% gain and is still trading at 0.85 currently which is still a 41.67% gain.
Both BFLX and GLTC are focused on the development, production and marketing of their proprietary products and advanced high performance fire prevention and fighting products and systems. The one difference, other than actual revenues, between BFLX and GLTC from their websites is that GLTC‘s FireIce is so effective that, in demonstrations, the CEO coats his hand in FireIce and puts his hand in the flame of a 2000-degree blowtorch flame.
BFLX Stock Snap Shot:
Mar 22 Trade Data:
Volume: 15,001,785
Last Volume: 25,000
Up Volume: 4,041,626
Neutral Volume: 6,426,175
Down Volume: 4,533,984
Average Trade Size: 20,082
Market Cap: 5.58M
Enterprise Value: 6.57M
52-Week High (Mar 7, 2012): 0.59
52-Week Low (Mar 22, 2012): 0.05
Avg Vol (3 month): 11,424,100
Avg Vol (10 day): 6,526,620
Shares Outstanding: 93.00M
Float: 42.14M
According to the 10Q filed for the period ending November 30, 2011, BFLX had 93,000,001 shares outstanding.
BFLX’s Henrik Dahlerup, COO, and Kristian Schiorring, CEO, both filed Schedule 13D March 15, 2011 with the SEC each registering their 27.5% ownership; 25,428,333 and 25,428,334 shares respectively of BFLX’s 92,466,667 shares outstanding. Since BFLX confirmed, via press release, their current share structure of 93,666,667 shares issued and outstanding, the 42,110,000 free trading shares in the float, as stated by Kristian Schiorring, CEO, 700,000 additional shares have been issued since the 13D filing.
As noted on the 10Q; On April 26, 2011, BFLX issued 333,334 shares of restricted common stock for cash proceeds of $50,000. Accoding to the 10K filed on May 18, 2011, the 333,333 shares were not noted as restricted shares and valued at $0.15 per share for $50,000. During the period ended November 30, 2011, BFLX issued 200,000 shares of its common stock for services provided to the Company.
Penny stock newsletter circulation started around March 6th on BFLX had $500 thousand behind it promoting the penny stock. There may also have been a slander campaign on message boards, but for anyone who has done a Google search on the word “Santorum” without any filter to remove profanity and seen what the #1 result is; GOP candidate Rick Santorum is still pulling out wins.
BFLX.OB commits itself to making firefighting entirely eco-friendly and significantly more effective, very similar to what GLTC.OB does, through the introduction of the company’s comprehensive, innovative life-saving applications. BFLX is determined to obtain and sustain a lucrative market leading position, as is GLTC, within the rapidly emerging niche of ecological firefighting and protection. BFLX hopes to establish itself, as does GLTC, as a highly innovative and unconventional partner in an otherwise extremely convention-bound business field.
- BFLX Revenues Since Inception thru November 30, 2011: $0
- GLTC Revenues For Six Months Ended December 31, 2012: $262,953
Bottom Line: With no revenue and less than $300 cash as per the 10Q for November 30, 2011, BFLX does not appear to be as attractive as the share volume and possibilities seem for entering into a well-established marketplace. BFLX has been one of the top 10 penny stocks in total trades since early March but should not be able to sustain these levels for much longer.
If it’s the momentum that drives you to BFLX then monitor it closely. If it’s the fire-fighting, eco-friendly products, have a look at GLTC. One is going to soon be a sub-penny stock while the other has been above $1 and will likely be there before year end again.
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