|
Elio:
I think your source is waaaay off on the "$28,000,000" advertising campaign. I have no reference to base anything on, but the company could no more do a campaign of that size than I can get a date with Julia Roberts.
The company, if it did a 504, undoubtedly did it to raise money for marketing. Forget the obsession with market makers. If they wanted to be in a partnership with MM's they'd sell stock to MM's. And it is a sad but true fact that selling short is not illegal.
I don't think another RS is in the works because an RS won't solve any problems. Given the downward pressure on the stock, I think a 504 is the answer here. But I also believe that the company needs the money to push the product. I am not bothered by a 35 million share float. I wouldn't be bothered by a sixty million share float. I posted a while ago that I think we could see a $3 share price even with a sixty million share float.
The issue for me is can the company get PMA selling sufficiently to make BNEZ a viable corporate entity. Between Staples and CompUSA they must be in close to 800 stores. I have friends, and fellow share holders, in other states who report seeing PMA in small local stores. But if we keep to the 800 store figure, and assume an average of 3.5 units per store in monthly sales then the company is bringing in somewhere around 100k a month pre-tax. The 3.5 figure is based on average sales of competing products like Window on Wall Street and Stock Shop, and I'm figuring a net to the company of around $38 per unit.
The company can probably survive on 100k a month, but it can't grow. It also can't reasonably expect to stay in business. It needs to do two things: expand its retail presence and advertise. They need money to do both. They may also need money for litigation. Depositions have to be completed by the end of the month, and that has to cost a lot of money.
They might be able to factor purchase orders, but the cost would be prohibitive. A 504 makes sense. As a shareholder, I'd rather see an expanded float than a dead company. Your suggestion that these guys are working in tandem with MM's doesn't make sense. If there was a connection we'd have seen the old pump and dump pattern: great news releases followed by a run up and then a crash. BNEZ is a model of how not to pump and dump: understated news releases and low key profiles. You don't pump and dump at twenty cents.
The company needs money so that it can live off sales of PMA. If they don't, I'll have another reminder for my "should have invested in AOL and IBM" wall.
Hope this helps |
