Without a change in the price from its previous day close, Biostar’s stock kept the high trading levels throughout the whole day and closed at $3.03. The shocking value in yesterday’s trading session was the volume. An over 400,000 share turnover for the usually illiquid stock had not been seen over the last three months. Thus, BSPM improved some of its technical indicators, which now seem in compliance with the improved fundamentals.
The financial results were actually filed on Friday, which makes yesterday’s jump some kind of suspicious and raises questions about what caused it. For the three months ended this June, Biostar reports substantial increases in sales, net income and cash flow from operations. In March, the company even made an agreement for a strategic acquisition, and has taken control over the assets of a Chinese medical equipment and nutrients manufacturer.
This latest even also did not coincide with April’s stock rush, but there is another event that coincided completely.
At the beginning of April, a stock promotion for the stock was disclosed. The promoters state on their website that they are being engaged in promoting BSPM for a one-year period starting in the middle of March this year. Their compensation consists of a total of 17,000 shares, which they purchased in the open market before the promoting began at prices between $3.50 and $4. As of Friday last week, the promoters still hold 7,500 of BSMP shares.
