TO ALL:
I copied this post from YAHOO. I'm re-posting it so hopefully others will realize what a great value BCMD stock is now. IMO any price below 50 cents pre-split is a steal.
1. BCMD was an undercapitalized mining Company that failed.
2. It had no money to file for bankrupcy.
3. Long before it failed, Mr. Stockett devised a business plan involving cement.
4. Having devised this plan, he happened upon BCMD and noted it had a tax loss of $41 m or such.
5. If he could use BCMD as his shell for his cement venture, he could be able to offset future earnings with these losses.
6. He did not have to use BCMD for this purpose.
7. If he used some other shell, these postings would be under some other company.
8. But he selected BCMD. So we post under BCMD.
9. What does this mean?
10. People with losses in BCMD stock are taking them now. Just as the failure of BCMD meant $41 m in tax losses for Mr. Stockett's new company, so do losses in the underlying stock represent an opportunity for existing shareholders.
11. Once the tax selling is over, the Company has to be valued as an engineering and cement company, not as a gold company.
12. Mr. Stockett expects to earn a profit; otherwise, why take over a shall with $41 m in losses? The only thing of value in BCMD are those losses, and those losses mean nothing if the new BCMD fails to earn a profit.
13. The engineering company will give BCMD a p/e ratio. It will have some "e"s.
14. That will permit the street to use traditional pricing methods to determine a value for the stock.
15. Eventually BCMD will have a new group of people owning the stock -
the gold people will be gone, and the cement people will take over.
16. People who like to own cement stocks are different from those who
own gold. Cement people like immediate profits now; that do not like to take huge risks for unknown riches. As the Company changes, the postings on Yahoo will change as well. Engineers will start owning the stock, and you will see engineering types making comments about the price of cement in Vegas.
17. Cement Company bulletin boards tend to be boring. Not much action.
Cement is not a hedge against inflation. You can't stuff it in a safety deposit box or spirit it into Canada.
18. Cement shareholders tend to allow management to run the company and are content to sit back and watch their investments grow.
19. Once the selling is over, the question is this: is 25 cents a good price to buy into a engineering company with a proven track record? If Stockett started a new IPO, would 25 cents a share be a fair price?
20. BCMD is now a new company. Once the market figures that out, it will be priced accordingly. |
