Caution to any new Deep Blue Marine investors:
There is a saying that those who ignore history are doomed to repeat it.
Deep Blue Marine has one of the best ever “stock stories” and had a PR effort slicker than goose grease. Unfortunately it also demonstrated that it doesn’t understand the first principle of a public company, increase shareholder value. To pay for ongoing operations, the CEO simply DUMPED shares on the market significantly driving down the stock price. There was no plan to hold price, just get any pennies from the public he could. I have witnessed naked shorting destructive Reg-S trading that was less destructive to shareholder value than what the CEO of DPBM allowed to occur. The R/S was also handled abusively, no proxy was sent to shareholders. DPBM claimed it was going be a reporting company, never was, and never filed a useful detailed report with balance sheet to shareholders.
Now with the initial investors bled dry, there will be a new effort for Deep Blue to reinvent itself and erase all memory of its past failures. A R/S of 5/1 and a new DPBE ticker are just the start to repeat history. Like crooks, once a corporate MO, almost always the same MO. I expect an effort to deny and do revisionist history for Deep Blue. IMO there will be pressure to remove all vestiges of past shareholder discontent from public availability. I already see that effort occurring.
Irrespective of the DPBE great stock story, new investors need to understand that Deep Blue has no revenue stream and if discovery probability is typical, never will. So where will operating expenses come from? You the investor will fund the company through stock dilution. That’s of course is OK only when it is done responsibly and not simply dumping shares on the open market squandering shareholder value.
My guess is that DPBE management will allow the stock to appreciate somewhat before returning to their past MO. There will be announcements of discovery, a nail or two, maybe even some coins. Maybe somewhere near $0.10 the dilution will begin again. The disgusted original shareholders will sell on the way up, but that’s not so may shares since the R/S. Stock appreciation will occur, but be prepared for the eventual dilution. It should be a good trading stock on the way up, but IMO long-term investors should avoid this stock like the plague.
You are warned.
Regards,
Richard |
