BMPI | BillMyParents Gets Less Lonely With Bieber Fever

Tuesday marked another one of those historic days when my 14 year old daughter tried to give me stock advice: “Buy shares in BillMyParents Inc. (BMPI).” The conversation went something to the extent behind the screaming and excitement that Justin Bieber is, once again, tied to another penny stock except this time, its not priced at 0.01. Actually, BMPI stock nearly 40 times as much as Options Media Group Holdings Inc. (OPMG) was when the teenage YouTube phenom got involved with them. If you were thinking that this new deal will bring the 712% gains OPMG stock saw over two months after the first PR on May 16, 2011, you’ll likely be better off taking advice from the person who gets your coffee int he morning.

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BMPI Stock Chart

Market Cap: 62.02M
Close: 0.63, up 0.12 (23.53%)
Volume: 875,522
Dollar Volume: $525,642
High: 0.6499
Low: 0.4701
Trades: 289
Average Trade Size: 3,029
Authorized: 300,000,000
Issued and Outstanding: 98,450,293

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Even though the Company has raised over $13 million during the first nine months of their fiscal strictly by selling common stock, the share price of BMPI has seen better results in the last 6 months than it did for the previous three years. Yesterday’s “Bieber Fever” caused some traders to jump in blindly hoping the news was legit and the OPMG results could be seen on BillMyParents. Here’s how the 3:15pm filed 8-K from Tuesday begins which details the Entry into a Material Definitive Agreement:

On November 20, 2012, BillMyParents Inc. entered into a Promotion/Endorsement Agreement with Justin Bieber Brands, LLC, pursuant to which Justin Bieber Brands, LLC will promote and endorse the Company’s products through various media set forth in the Agreement. Services include the approved use of Justin Bieber’s likeness and image, and promotion of the Company’s products across social media, including postings on Facebook, Twitter and Instagram, videos, voicemail and e-mail messages from Justin Bieber to Company cardholders, and other cardholder experiences. The Agreement commences upon the Effective Date and shall have a term of 14 months, unless extended as provided in the Agreement. (click here to read full filing)

Dude, that’s as hot as you could want going into the holiday season with BMPI stock, especially when, as per your last 10-Q, you show to investors that sales are growing, $776,805 for the nine months ended June 30, 2012 versus $22,800 for the same period in 2011. Add the fact that they reported $7,387,392 in cash and total liabilities of $1,471,516 as of June 30, 2012 and it all looks good. Now even though their personnel expenses seem a little “out of control” for the three months ended, $6,432,724, it all gets trumped by the Subequent events statement made:

On July 24, 2012, our Company’s Board of Directors approved a one-for-ten reverse stock split (subject to approval by a majority of our Company shareholders – such approval to be solicited by proxy).  The Board also approved our Company’s application for listing our common stock for trading on the NASDAQ Capital Market. 

Did they say RS and NASDAQ in the same paragraph?

While the BillMyParents/Justin Bieber news went viral last night, it wouldn’t be surprising to see a huge gap open for those who love the connection between the two: Justin Bieber and Endorsement. While no one even knows at this point if Justin Bieber Brands, LLC is even connected to the superstar, OPMG did pretty damn well (see chart here) with actual statements in the PR (see here) from the recent Oprah interviewee. If that surfaces anytime today, watch the 0.90, 52 week high of BMPI stock get tested while our teenage kids continue to E’ffUpMyDadsCredit.

About BMPI Stock

BillMyParents, Inc. provides a simple, low-cost and convenient money management solution to young people under the supervision and guidance of a responsible adult. The Company is designed to enable parents, other responsible adults and young people to collaborate toward the goal of responsible spending via the BillMyParents® prepaid card with special features aimed at young people and their parents.

Last 5 Trading Sessions:

Date Last Change % Change Volume
11/27/12 0.6300 +0.1200 +23.53% 875,500
11/26/12 0.5100 +0.0110 +2.20% 40,800
11/23/12 0.4990 unch unch 7,000
11/21/12 0.4990 +0.0190 +3.96% 106,500
11/20/12 0.4800 -0.0100 -2.04% 76,200

Click here to view the SEC filings for BMPI.

Bottom Line: BMPI is deservedly on the top 5 penny stocks to watch today along with SVEN, SWVI, GNIN and DRHC. While most of the trades to end Tuesday were sells, just like a ticket, traders will be lined up at the open to buy shares of BMPI stock just on the chance they hit the lotto with it and can see anything better than 0.90 per share.

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