Flora,
Let me share a few thoughts and maybe you will get a clue why the share price is where it is.
A lot of people bought BCB a year ago, after reading about it in ID, where sales forecasts were given as 4.3M this year and 43M within three years. Where Phil Speller came up with these numbers is a mystery, but my guess is that someone from BCB TOLD HIM!!!! He's not smart enough to make up numbers.
The actual sales for this year were only 1.6M. Yes, a 60% increase in sales is not bad, but a lot of that increase was probably due to the purchase of Granville Research.
Buying Granville took me completely by surprise. After watching I-star shares go from $20 to $0.65, (and Hookup internet did even worse) I did not really want to have anything to do with an internet integration company, and I don't care what the growth rate of internet usage is!
Also, it seems that Granville was a potential customer for BCB's products. Does BCB intend to buy out all their potential customers?
Next, as I already noted, expenses in all areas have roughly doubled (as has your net loss), with the exception of one: Research and Development has increased BY A FACTOR OF 14.6!!!! Do that three years in a row and you will be at 2.3 BILLION (yes, that is a B).
Why am I worried about such a huge increase in R&D? Maybe I can refresh your memory by quoting from LAST years Annual report: "In 1996 the Company geared up for a major push towards marketing, selling and producing the products that had been developed in the initial years of operation". Up to that point (from 1992 to 1996), the company had invested 500,000 in development of its products. Imagine my surprise when in one single year (1997) you spent 745,000.
Regarding the rights offering, you say that it's OK to leave out 80% of Canada as "not eligible", but it would not be in the best interest of the co. to restrict the offering to a small area.
That was my point exactly. It was not in the interest of the company to make restrictions on the rights offering. It was only in the interest of certain shareholders who live in Alberta or Ontario, and since this group includes ALL of the insiders of the company, you can just imagine how it smells.
I have lots more, but I'm probably boring you, so I'll stop here.
Best regards, George. |
