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BillMyParents, Inc. (BMPI.OB) Due Diligence.

BillMyParents, Inc. (BMPI.OB) Due Diligence.

UPDATED 11/27/12:

BillMyParents has entered into a spokesman agreement with Justin Bieber, so the rumors I heard from months ago finally turn out to be correct. I expect more news on this tomorrow to supplement the company's 8K @ http://biz.yahoo.com/e/121127/bmpi8-k.html

BillMyParents provides payments solutions to teens, young adults, and their parents. It offers SpendSmart card, which provides a way for teens and their parents to learn how to spend smart. The company was formerly known as Socialwise, Inc. and changed its name to BillMyParents, Inc. in June 2011 to reflect its business and lead product. Price when Maxim first came in: Under $0.40 cents. Current price: $0.75 cents.

Company's flagship product: The SpendSmart Card.

The SpendSmart card is good for birthdays, special occasions, or for parents with teens living in different households. The card is not a pre-paid debit card, but a totally monitored and parent controlled spending solution for their children -- parents can instantly add and remove money on the card via a web interface.

Features of the SpendSmart card:

  • Strict Spending Limits and Easy Monitoring.
  • No Credit Checks and No Credit Risks.
  • Parents can Instantly Lock and Unlock the Card.
  • Safer Than Cash with Lost Card Protection.

On August 6 of this year, Acceleron Equity initiated coverage on shares of the company and issued a buy rating on the stock and set a $3.30 price target.

Just recently, on September 25th Acceleron Equity Research reissued their BUY rating on shares of BillMyparents Inc. and increased their price target to $4/share.

The article quoting the analyst released by EquityBrief goes on to remark:

"BMPI shares more than doubled from just under $.40 in July to a 52 week high late last month. The 52 week trading range for the stock is between $0.21 and $0.90. Recent reports indicate that the firm may be getting set to launch an aggressive celebrity marketing campaign as they aim to help push card membership and firm revenue growth exponentially."

UPDATED: Justin Bieber signs with BMPI, Rumor also has it other big name celebs will be following suit, so stay tuned! As per the company's latest 10Q, an up-listing on the NASDAQ is coming as well -- even with a reverse split, I expect the stock to go higher as funds hit it up. Normally, when a stock UP-LISTS from the OB to the NASDAQ, the stock actually goes up, not down.

The trading volume for BMPI has been picking up a lot lately, which might indicate the EquityBrief report could very well be correct. I have been hearing the same thing from my sources that Equity research remarks about BMPI -- that a major marketing campaign might be on the way with well-known celebrities leading the charge.

However, I would caution investors/traders that sources can be wrong, but when I see a kind of confirmation from the article mentioned above, I tend to give it a lot more credit than just a single sourced rumor. Usually EquityBrief is right on the money, so this bodes well in my opinion. When I consider the stock doubled for no apparent reason in the last 2 months, its does appear to me that these reports we are hearing might have some meat.

BMPI is trying to engage in a somewhat unique attempt at reaching a certain demographic -- if successful, the current price of around $0.65 could definitely be around the area the Acceleron analyst thinks -- $4.00 in time.

 

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