Is BIFS for real?
Some BIFS DD:
Some "longs' here seem to feel that this stock is something of a golden goose. Nothing could be farther from the truth. In fact, it is running the course of your average speculative penny stock that got way ahead of itself and is now retreating to a more sensible level -- say, 10 cents.
BioFiltration Systems Inc. Announces a Strategic Alliance With OTC Telecom, a Wireless Hardware Manufacturer and Issues Statement
biz.yahoo.com
Who is OTC Telecom?
ezylink.com
What do they make?
OTC Telecom 11 Mpbs Wireless Ethernet Bridge
ezylink.com
AirEZY2400-SWG is a high-performance LAN adapter that can provide PCs, Macs and most workstations with instant wireless Ethernet LAN capabilites.
ezylink.com
These products sound very close to BeachAccesses products.
call OTC Telecom and ask for Sayid
1-800-770-6698
beachaccess is purchasing OTC Telecom's products.
Could beachAccess be an OEM from OTC Telecom?
Is that why they don't have patents?
Are they simply installing OTC Telecom's products?
How hard is it to install OTC Telecom's products?
Brumm selected AirEZY Wireless Bridge from wireless networking vendor OTC Telecom in San Jose, California. "Installing the AirEZY Bridge was a real 'no brainer'," according to Brumm. "And I was very pleased with the performance. The AirEZY Bridge delivers 1 Mbps throughput, which is about equal to the performance on a loaded Ethernet network - you couldn't ask for better performance for the money."
ezylink.com
What is inside of OTC Telecoms products?
Harris Semiconductor and OTC Telecom have agreed to partner on the development of a new wireless LAN product that will enable network communications at an 11 Mbps data rate using direct sequence spread spectrum (DSSS) technology.
ezylink.com
This sounds like BeachAccess's technology...
Looking at Harris's/Intersil's website and searching for PRISM...
intersil.com
I found this desciption of their chipset:
intersil.com
Sounds very similar to BeachAccess's technology...
BIFS claims to have some special LAN roaming patent but he is unwilling to post the details. why?
Commentary from a lawyer:
I can think of no situation where a company would want to NOT disclose a patent or the existence of one that is registered. In the US, patent applications are not published until registered. There are amendments planned to change this regulation. However, these "submarine patents" are published in almost all other jurisdictions.
If a company has a registered patent, and does not wish to disclose same; the only reason I can conjecture for such non-disclosure is to avoid scrutiny from the investment community.
Looks like somebody else already has a similar patent...
patents.uspto.gov.
I'll let you draw your own conclusions.
(1) Valuation. In its recent 10QSB filing, BIFS reported revenues of $166,432 with losses of $832,239 and assets of $1,139,225, including $860,099 in cash. This was for the first six months of the year. Taking the 500,000,000 share float and todays' price of about 80 cents, we have a valuation of $400,000,000 for the company.
Ladies and gentlemen, you simply cannot support such an extreme valuation on the basis of these finances! This implies a Price-to-Sales of 1201 ($400,000,000 / [$166,432 * 2].) I have made this point here a number of times and have been consistently ignored. And how about cash burn rate? What do the above figures suggest about the viability of BIFS over the next 12 months?
edgar-online.com. (Free log-in required)
2. Technology. There is nothing unique about BIFS' technology. Take a look at this company:
telxon.com
They are also publicly traded but sport a price-to-sales of only .92 (as in point 92)!
biz.yahoo.com
If BIFS were valued similarly, it would be worth less than a penny! What makes BIFS so unique? Certainly not its "SWOMI" technology!
3. Patents. The wireless LAN concept has been patented elsewhere.
164.195.100.11
Type in "6091951" in the search window. That is Telxon's patent. You might have noticed from Telxon's web site that, contrary to BIFS' unvalued contracts with local hotels and motels, Telxon recently announced a big, multi-million dollar contract with Target Corporation.
telxon.com
Why doesn't Biofiltration Systems detail the income from its projects? Answer: Because it knows that such modest income cannot justify the company's current market capitalization.
4. Deicing. According to its own web site, Biofiltration Systems has held its patent on an environmentally-friendly deicing process since 1993, but in all these years has been unable to find a way to build a business from this patent. Why should we believe that BIFS will be able to create a viable business model from its wireless LAN concept?
biofiltrationsystems.com
5. Infrastructure. Wireless LAN is of limited application. In coming years wireless broadband will become just as fast and ubiquitous. How is it that wireless LAN will see widespread deployment in the face of such competition? Who will rent wireless LAN access when their existing cellular phones give them equal access and performance?
The infrastructure costs of deploying such systems are immense. How is BIFS supposed to compete with far larger companies with far deeper pockets when the technology can easily be acquired from competitors?
6. Penny stocks. These issues have a long, ignoble history of stealing money out of the pockets of investors.
sonic.net
It's hard to blame people for wanting to get rich, but for the most part these issues are extremely unreliable, volatile, and for the most part never amount to anything. The few that do take years to demonstrate their worth. And BIFS isn't even OTC!
7. ISP. In reality, BeachAccess.net is little more than an ISP. Just as ISPs are slowing being replaced by free Internet access (and, shortly, free DSL), so will Beach Access.net find its position eroded as fast wireless access becomes ubiquitous. Examine the financials of Interliant Corporation or Verio Corporation to see what the ISP model means financially.
edgar-online.com. (Free log-in required)
edgar-online.com. (Free log-in required)
8. Weakness of longs. The disastrous collapse of BIFS last week should have been a warning to all about how shaky the "long" interest is here. That's easy to understand: With 500,000,000 issued shares, the price is easily manipulated, and there's just too much paper on this issue. Beyond that, it's worth noting that even BIFS "longs" on this board have found it necessary to stop their ears and not listen to anything that decreases their confidence in BIFS. This is a sure sign of weakness.
Here's a series of charts that should give anyone pause about putting money in penny stocks:
finance.yahoo.com.
9. Better options. There are many great, early-stage Internet infrastructure companies with great revenue growth, solid earnings, and widespread institutional support that make excellent investments in the ongoing build-out of connectivity. I won't mention these because BIFS longs will repeat a common lie here: That BIFS bears are paid bashers. Nothing could be further from the truth, yet folks on this board continue to repeat this lie because it gives them confidence that BIFS detractors have no point to make.
10. Why did BIFS hire a promoter with a questionable background?
newyorkobserver.com |
