Cann American Corp (CNNA)

[surf1944]

MSTG, BFLX, VGTL – Pump And Dump Alerts – March 16, 2012

http://www.pennystockresearch.com/mstg-bflx-vgtl-pump-and-dump-alerts-march-16-2012/

Bioflamex (BFLX)

Alright, I’ve been waiting since Tuesday to get into BFLX. Now it’s time to expose Bioflamex for what it truly is… a pump and dump!

If you missed my article Tuesday, I basically called out the CEO for complaining about his stock tanking in a single day. This guy basically blamed short sellers for smashing his company’s shares from $.050 to $0.10 in a single day.

Of course, it had nothing to do with the over $500,000 in promotional fees paid to pumpers…

The problem I pointed out is that short shares are on limited supply, at least at my broker. And I use Interactive Brokers, one of the largest in the business. If they have limited supply, then many brokers probably won’t even have shares you can borrow to short. It doesn’t add up.

For more details, you can read the article after you’re done here. But you’ll want to stick around to learn more about the company itself first…

For starters, BFLX has a jagged history. Before they became Bioflamex, the company was run as a mining exploration company. The name of the previous company was Deer Bay Resources, Inc, and was run by a different owner… Gary Wong.

That’s an obvious leap for a company to make, gold exploration to fire extinguishers. Why didn’t I think of that myself?

I’d bet the new owners, Henrik Dahlerup and Kristian Schiorring, were just looking for a way to have a US-based company. You see, the company is registered in Nevada, but their headquarters are in Denmark!

While the business change last year is a red flag, the financials are even worse…

From January 2011 until November 2011, BFLX pulled in $0 in revenue. But wait, don’t they sell fire extinguishers?

Not yet…

They’ve yet to produce a saleable product. In fact, they’ve only now just entered into a production partnership with a “mystery company”.

That’s right… in their press release, Bioflamex left out the name of their production partner. They simply said their new partner is a “highly specialized European aerosol production company”. I guess investors have no way of checking up on BFLX. So how do we know what they’re up to? You’ll have to trust what they’re telling us in press releases. And that just doesn’t cut it for me.

The only thing we’re left with is the financials… so let’s get back to them.

With $0 in revenue, BFLX’s bottom line is obviously in the red. For the nine months ending November last year, the company lost just over $100,000.

And cash on hand… let’s just say they’re a bit light with $276. That’s enough to keep the lights on for a week or so.

I’m not quite sure how this company will succeed with those numbers, but one thing’s for sure… even a pump and dump can’t save BFLX. Stay far, far away from this stock.