Blue Diamond Ventures, Inc. (PK: BLDV - .031 per share)
bluediamondventures.com
Common Shares Outstanding – Approx. 175 million
2005 Revenues/ Earnings - $5.89 million/ $1.03 million
2004 Revenues/ Earnings - $5.14 million/ $923K
Approx. Current P/E = .031/.0059 = 5.2 times
Recent High = .125 per share (May 9, 2006)
Recent Low = .03 per share (July 7, 2006)
Average Daily Volume = 773,600 (50-day)
Average Price = .0595 per share (50-day)
Stable Earnings from Farm Industries Help Support Blue Diamond’s Move to Rapid Growth Biofuels Market (Ethanol and Bio Diesel)
The Green Baron Report has uncovered what we believe is a ground floor stock opportunity that has a defined plan to become a player in one of the hottest sectors of the stock market. The timing appears absolutely perfect, and we believe the current earnings alone substantiate a much higher stock price. We always look for stocks that have limited downside and huge upside potential, but this one goes a major step further.
The Green Baron Report is proud to announce that Blue Diamond Ventures, Inc. (PK: BLDV) is officially our 53rd fully profiled stock pick and will be added to our storied list of previously profiled stock on our home page. Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at www.thegreenbaron.com.
Although we have very aggressive short and long term expectations for this stock, we still suggest our members try to accumulate as and close to the profile price as possible.
BLDV stock has gone full circle in its brief, but active trading history. In early to mid April, BLDV rallied on huge volume from about .035 per share to hit .095 per share. After a pullback to .05 per share, the stock hit a high of .125 per share in early May. A lag in news regarding developments of its bio fuels plans seems to have taken the stock back down and eventually to a new low recently seen at .03 per share. Please view chart at bigcharts.marketwatch.com.
Technically, The Green Baron Report does not see much resistance below .07 per share. Even the 50-day and 200-day moving averages are nearly double the current price of BLDV. If Blue Diamond can surprise the Street with any further new developments in its biofuels programs, we could see the stock easily break the year high of .125 per share. We also believe the stock is capable of hitting .25 to .40 per share if just a few key developments fall into place.
Fundamentally, Blue Diamond has something for everyone. The current revenue and earnings for BLDV are derived primarily from its goat farming and agriculture businesses. Revenues grew nearly 15% and earnings nearly 12% year over year. An argument can certainly be made that BLDV should trade at least 12-15 times earnings which would put the stock at a price of .07 to .09 per share based on last year’s earnings. Internal projections have this area of business growing at a much faster rate going forward.
There is a formidable management team being assembled that could take BLDV to a shocking new level. Seasoned experts are having ongoing negotiations that could evolve Blue Diamond into a legitimate player in biofuels and agriculture. Aside from a very experienced CEO, former eight-term congressman Eligio de la Garza who served as Chairman of the Committee on Agriculture for 13 years is now a Director at Blue Diamond. Ambassador Philip Priestley, former British High Commissioner in Belize, has joined the company in an advisory capacity, bringing 35 years of experience in trade, investment promotion, and bilateral relations.
Since ethanol and bio diesel are derived from agriculture products, it only makes sense that agriculture based companies are converting to this highly profitable business model. We note that use of renewable fuels such as ethanol will almost double in The United States by 2012 under legislation signed into law by President George Bush. Only a few days ago, Marathon Oil announced the first ethanol investment by a major U.S. oil company in 26 years.
The Green Baron Report believes some major surprises could occur at any time for BLDV. We believe the stock has tremendous value at current prices, and poses huge upside potential. We understand that Blue Diamond is currently completing an audit to get listed on the NASDAQ Bulletin Board. The Company has also announced that it will be submitting financial statements to www.pinksheets.com. It also stated that numbers announced May 8 were audited and on April 24 announced that it has engaged SEC attorneys to file paperwork for a listing on the NASDAQ Bulletin Board and other global exchanges.
About Blue Diamond Ventures, Inc.
Blue Diamond Ventures, Inc. is an agriculture, biofuels, and commercial development company with operations in Belize and the U.S. The Company recently announced plan to break ground this year on a million dollar goat processing facility in Belize and aggressively market the world’s most eaten meat throughout the U.S., Central America, and the Caribbean. Blue Diamond will utilize 3,000 acres in Belize and 1200 acres in Oklahoma for a goat ranch, research center, and processing facility. Local farmers in Belize and Oklahoma, under a cooperative agreement with Blue Diamond Ventures, will raise the goats and process them at the company’s facilities. Blue Diamond’s business plan includes ethanol production, tilapia and shrimp aqua farming and raising thousands of acres of soybeans.
On June 9, Blue Diamond Ventures announced it is confidently moving forward with its goal to build goat processing facilities and an ethanol plant. Last month Blue Diamond submitted to the Belizean government a formal proposal for the purchase of the Libertad Sugar Factory. The Libertad factory resides in the center of the country’s sugar cane production. The Government of Belize acknowledged receipt of the proposal and responded they are not in a position to act on the offer from Blue Diamond until a stand-still period of 45 days has expired due to feasibility studies being carried out as a result of a recent Memorandum of Understanding.
CEO John Quincey Moaning stated “we are aggressively pursuing other options including sites outside of Belize. He went on to say he is “confident that within a short period of time that we will have a site located and we will begin construction of our ethanol production facility.”
Blue Diamond plans to initially construct a 3.5 million gallon per year (MGY) ethanol facility and a 5 million gallon per year bio-diesel facility in Belize. The company anticipates using sugar cane and molasses as the main stock for the ethanol. The bio-diesel will be manufactured from vegetable oils such as soy beans, canola, and palm and from animal fats processed at Blue Diamond facilities. As Belizean farmers grow more sugar can in anticipation of selling it to the ethanol facility, Moaning envisions expanding to a 50 million gallon per year facility.
Key Management
John Quincey Moaning – CEO / President – Moaning, who has more than 15 years of agricultural experience, co-founded Blue Diamond in 2000. He was reared on a 300-acre farm in Oklahoma where he raised cattle and swine (grand champion) and farmed soybeans, corn peanuts, and cotton and was among the top Future Farmers of America and 4-H students in Oklahoma. He created a strategic partnership with Langston University to establish the first Goat research Center in Belize.
Eligio de la Garza – Director – One of Congress’ leading experts on U.S.- Mexican relations, de la Garza has worked to improve relations and trade between the two countries throughout his congressional career. In 1966, he became the first congressman from the Texas-Mexico border area to serve on the Mexico-United States Interparliamentary Group, which promotes dialogue between legislators from the two countries. He served as Chairman of the Committee on Agriculture for 13 years, and maintains close relationships with many world leaders and agricultural ministers.
Ambassador Philip Priestley – Advisor - Former British High Commissioner in Belize brings 35 years of experience in trade and investment promotion and bilateral relations. It was announced on June 19, a few weeks ago, that Ambassador Priestley expects to travel to Belize in the near future to talk to the Belize government and business leaders about Blue Diamond Ventures’ projects. He was quoted saying, “These projects support the government’s policy of attracting sustainable and environmentally-friendly development to Belize and will bring jobs and investment of the area.”
Green Baron Conclusion
We believe BLDV should trade back up to .07 to .10 per share over the very near-term based solely on its earning and developments in agricultural projects and farming. The stock has been way oversold from recent levels due to a soft micro-cap market and a lack of substantive press releases. The Green Baron Report believes we will see continued solid growth on the agriculture and commercial development side of the business.
A virtual home run exists here if Blue Diamond can land a sweetheart deal to build an ethanol and bio-diesel facility in Belize or Oklahoma. We also believe the Company is entertaining the idea of bringing a well-respected renewable fuel specialist into its management team. The Green Baron Report expects the Company to shed new light on these prospects soon, and the result could generate major attention to the stock. We view the added potential of the biofuels business ought to put BLDV at about .15 per share right now.
BLDV is a full pink sheet with recently announced financials. Although The Green Baron Report treads cautiously with Pink Sheet companies, Blue Diamond has made it clear that it wants to gain its Bulletin Board listing. The spread is tight and volume has been active. We see the stock as a perfect opportunity for our members particularly at what we think are ridiculously low levels. As they might say in the movie “Wall Street”, “Blue Horseshoe loves Blue Diamond”.
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