P&D FOLLIES, Ch. 304
Just in time for year-end, the hardluck OTC Journal that hasn't had a winner in about 3 decades, trots out one of its major losers, guns ablaze, and shoots itself in the foot again:
"We interviewed Jamie Olivier of Blue Zone (BLZN) this past Tuesday. The stock is down from $15 in March to just above $1, but that performance is hardly unusual in this year's
market. Jamie's view of Blue Zone's accomplishments in 2000 were as follows:
- Have what they believe to be the only cross publishing system [whatever that is] that has been adopted by a broadcaster today.
- Completed financing in September which puts them out until 2002 with no additional capital or sales of any kind [swell, another no-revenue dot-com sucking up cash like a
black hole].
Any technology which enhances profits is quickly adopted by US corporations. The new year could see Blue Zone at a whole new level of prosperity [unless we contradict
ourselves in the next paragraph].
Negative surprise: This past Friday Blue Zone issued a press release which could only be viewed as a major negative for shareholders [tell us more, oh, great sage before we
wear out the edge of our seats]. The company announced that it had restructured its September financing in a manner which is extremely harmful to existing shareholders. This
past September an institutional investor purchased about 1.8 million shares at $7.05 per share. There were additional warrants and options included in the investment as an
incentive. On Friday the company announced it had restructured the financing to 3 million shares for $2.5 million. This drops the cost basis of 3 million shares to $.86 from $7.05.
Management's excuse for this harmful move related to the potential for losing their NASDAQ listing. [Zinger alert!] While we are convinced the company is a great software
developer, we believe this moves [sic] demonstrates total disregard for shareholders. With 3 million shares now issued at $.86 this stock has very little chance to appreciate
significantly until this supply is absorbed. This move lowers the bar dramatically in terms of potential price appreciation in this stock. If you wish to email the company and
express your disgust with management's callous attitude towards its shareholders, use the following email addresses..." [and so on].
In other words, you won't make a nickel with this POS any time soon but run out and buy it anyway based on some of our B.S. that is no longer relevant (hey, OTC Journal needs
to cover its monster losses). What planet do these hog-farmer stock gurus live on? |
