Hello, Ed. I've been following BZG.V for a while. Friday, December 4, I bought 5,000 shares of BZG.V at 41 cents (U.S.). I may buy more in the future. I understand that BZG is a speculative stock.
The first issue I see with BZG is migration to the United States. The most recent news on this issue is as follows:
December 2, 1998 - Benz Shareholders Approve Migration to United States biz.yahoo.com The shareholders passed a resolution authorizing up to a 1 to 5 reverse split.
December 3, 1998 - Benz Announces Clarification to December 2, 1998 Release biz.yahoo.com The clarification statement says that the Board is "not considering" a reverse stock split at this time.
(For those who don't know much about reverse stock splits, here's an article about reverse stock splits: "Less is More? Reverse Stock Splits Can Shore Up A Stock's Price, But it Often Signals Caution" stockdetective.com )
Friday, I spoke with Mark Kahil at BZG's investor relations department. Mark says that BZG hopes to become a Delaware corporation and be listed on the AMEX by January, 1999. A listing on the AMEX will give BZG more investor visibility. In order to be listed with the AMEX, BZG must trade for at least $3.00. See AMEX Listing Guidelines for U. S. Companies
amex.com
Mark confirmed that the Board does not want to do a reverse stock split, but the resolution authorizing the reverse stock split was made to cover all contingencies. Mark stated, for example, that if BZG's price was close to $3.00, then the Board might authorize a 1 to 2 reverse stock split.
Ed, since BZG is trading at about 41 cents (U.S.), what do you think will happen between now and January, 1999, to raise BZG's price to $3.00?
The second issue is positive earnings growth. The latest "unaudited" financials were reported December 3, 1998. See article: Benz Announces 705% Revenue Increase for First Nine Months of 1998 biz.yahoo.com
BZG lost 25 cents (U.S.) for the nine months ending September 30, 1998. Significantly, General and Administrative costs were up substantially. I would like to see an itemized list of the G & A expenses. What did they spend all that money on? Also, Ed, when do you think BZG will start to earn a profit? |
