Hiya Charger,
Let's have a shot at puttin pieces together. I went through this back when I decided to go long on this stock. BLHG, for all practical purposes has been reborn, so to speak, from Beacon Light Mining. So, I consider BLHG to be a "new" company, if you will. Balance sheet on Dec 31, 1997, virtually zero. As of 30 Apr 1998, assets just over 6mill with liabilties just over 5mill. There was an infusion of funds from somewhere. My guess, it could be ANSAM, or Ansam Metals, as the parent company or at least the controlling stockholder. MY GUESS!!!! Precious metals being their business and apparently a privately held company. With a little loose change around they need to make an investment, an investment not in the same line of business. BLHG has a China mining connection gone bad, but, plastic manufacturing looks like a low risk thing, if they can get the right staffing and the right partners. China has the cheap manufacturing, but how do you sell it to four major customers? You could have as part of your joint venture, a principal partner that has quality Management as their long suit. A new company, without any manufacturing management credentials would do well to have the overall management be the responsibility of a company that specializes in Quality Management, ergo--ISO 9000, the international standard.
If I were a potential customer for a lot, a lot of cheap plastic gadgets, and it was money on the barrel head at delivery, or maybe some money up front, I would have to be convinced that delivery would occur on schedule and that the product would meet my specifications. Full compliance with ISO 9000, through the design, manufacturing, packaging, shipping, recieving and acceptance inspection would give me a warmer fuzzy that I was not ordering stuff that would be late on delivery, not meet my specs or have manufacturing defects. NEED TO VERIFY THE ISO PINNACLE as the JOINT VENTURE partner.
These are issues that I considered as part of my risk for long investment. Furthermore, while I am quite dismayed at the current stock price, I have to remember my original intent being long term. Until deliveries occur and/or other contracts become a public record, the short term players are going to loose heart and move on to greener pastures. That's OK, everyone has there own field to plow. For my part, I have re-analyzed my rationale for the initial commitment to buy and still believe it to be a profitable pay off in the long term.
I now, do not expect any significant movement until August, when there should be some substantiating numbers in the financial column. That is unless, there is intervening news of new contracts and/or substansive information to gain public attention.
These are all my own thoughts, and I only share them as possibilities. Everyone has to take what I provided, do their own validation and verification of fact, make their own decisions, and Lordy, hope we are all right and do well.
Whew, darn, fingers are tired.
Shorty |
