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Microcap & Penny Stocks : Brisio Innovations Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Topdog who wrote (1838)

12/12/2015 8:00:05 PM

From: ayeyou

Read Replies (2) | Respond to of 1952

I seriously doubt that Acton's intention was to sell BZI at .045 after he bought them at .30 or so a year ago. No one is to "blame" when a stock goes bad but it is a fact that during that high time on the Kitchen thread people were getting a little full of themselves. Case in point...I posted re LRL on Statesides microcap thread back in May and was honored by the replies of Diddly and yourself re how much LRL was too risky and did not offer the same "solid" investment as IBH. Here are a couple posts from Diddly and yourself re that and a couple charts which if you look at May and then now you will see that LRL was actually a much more solid play...Note that Diddlys post bashing LRL got 7 reccos from mostly the Kitchen "inner circle" even though most of them never did post on that thread.
FYI charts show IBH with a 40% loss since those posts and LRL with a 10% loss. Now which play was "too risky" as you stated in your post... I like to invest in deals which provide great returns with lower downside risk. Right now there are just too many risks here.

If there ever is a circumstance where a trader is to blame it is when they blindly follow what they consider to be an "expert" or a guru because once someone surrenders his own opinion to that of another for that alone he must take the "blame".

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To: statesidereport who wrote (443)	5/18/2015 5:44:27 PM
From: diddlysquatz	7 Recommendations Read Replies (4) of 1388

I had an interest in LRL so not only have I done a considerable amount of dd but I met with management as well as visited the facilities in Abbotsford, BC. On the surface LRL does appear to be an interesting investment opportunity. There are a lot of differences however between LRL and IBH that you've neglected to mention and that I believe help to explain the difference in valuations. About the only similarities is that they use wood as their raw materials. The main market for IBH's products is a subset of the housing industry, commercial and multi dwelling unit construction. What is driving the use of IBH's products is the regulatory mandating of fire separation in construction. This is causing a growth rate considerably higher then the overall growth in the housing sector and you may also notice that while single family home construction continues to grow it is growing at a slower pace then multi dwelling unit construction especially in the more populated urban areas. The bulk of LRL's housing construction products, it's floor joist webbing is much more applicable in the single family home construction and the decision to purchase this product is in the hands of the contractor who likely looks at cost to determine if they will use the product rather then by-law requirements. As for LRL's now key product, their access mats this applies more to the oil and gas and heavy industrial markets and will be susceptible to the swings in those sectors. There is also a considerable difference in the financials of the two companies. IBH's balance sheet is considerably stronger with positive working capital of US$755,000 and shareholder equity of US$3.489 million where as LRL has a working capital deficit of $890,000 and negative shareholder equity of $508,000. While LRL's balance sheet has improved over the last few quarters any downturn in it's business would likely put it in a very vulnerable position especially considering that they owe approximately $220,000 to Canada Revenue Agency for what looks to be payroll deduction, or income tax arrears and penalties. As for the recent strength in revenues for LRL i've learned that the bulk of the strength came from their recent agreement with Hampton for their access mats and it can be attributed to inventory loading to stock the product. I suspect that Q2 should be considerably slower than Q1 now that Hampton has built it's initial inventory. I'm not aware of what kind of seasonality there might be to this business. As for the access mats and the deal with Hampton when I asked about the length of the contract I was made aware that there is only a verbal agreement to supply product. Hampton can cancel their ordering at any time. In my opinion this increases the risk going forward especially since their financials are fragile. Also keep in mind that this is a service agreement. Luxor gets paid approximately $50 per mat that they make. Notice in the financials the break out of service revenue (70%) and sale of goods (30%). There is no proprietary product or process involved. Almost anyone can provide the same service if they had the financial means and desire and Hampton has secured two other operations to produce these mats in other parts of the province. As more evidence that this is a low hurdle type of business most of the employees are paid a starting wage of $12/hour which tells me there is no great skill required to build the product. IBH has ownership of patented intellectual property. This has been further monetized with a licensing/royalty agreement with Kronospan and possibly with LP in the near future. IBH continues to leverage its IP by working with LP to create new products. This has value that the market must evaluate. As for your question regarding why IBH had a slower April 2015 then 2014 this could be due in part to the lumpiness and or timing of the ordering process. March 2015 product volume actually increased 5% while revenues were lower. However the drop in revenue had more to do with the drop in substrate prices (OSB) to near record lows as the increase of OSB supplies effects the supply/demand equation. It is a little to early to determine if there is a multi dwelling unit construction slowdown, my research tells me it should continue strong. If you want to follow someone with a very good read on the sector I suggest Calculated Risk calculatedriskblog.com One other thing I will leave you with. The drought on the west coast of North America will bring with it a heightened concern for wild fires. The damage that is likely this year may dwarf anything we've seen in years and the likely response will be further fire safety building regulations that should benefit products like those produced by IBH. I'll continue to watch LRL and may buy some if the risk/reward improves a bit more.

To: ayeyou who wrote (455)	5/19/2015 11:27:58 AM
From: Topdog	Read Replies (1) of 1388

The CRA debt is a big red flag. What else is going on that we do not know. Not to say it cannot be overcome. It just makes an investor nervous and I believe much more DD needs to be done before one can be confident that this is a good investment. Yes the margins look good in today's market however if there's any slow down can they hold on. I think this might just be a stock to put on the watch list to see how they roll out from here. There's no hurry to buy here. Those who do may get a bigger percentage win however personally I like to invest in deals which provide great returns with lower downside risk. Right now there are just too many risks here.

To: Topdog who wrote (1838)	12/13/2015 10:43:10 PM
From: Acton	Read Replies (2) \| Respond to of 1952

Sell at 4.5 red cents? No chance. Management won't be getting off easy with me. I'll likely be a thorn in the side until they turn this around. Hold 'em accountable. More holders should do the same.

To: Topdog who wrote (1838)	12/28/2015 11:37:34 AM
From: Tiggg	Read Replies (1) \| Respond to of 1952

Topdog, there is some kind of an inner circle; by that I mean people that talk to Paul regularly. And you can't deny that those know way more than the rest of us... That said, he is quite accessible, so one could argue that it is just a matter of putting in the effort. That aside, I own some shares of BZI (small position) and have been disappointed for the following reasons, unrelated to the share price: - Unless I missed it, Paul didn't buy any shares on the open market this year, - While he was still paying himself as of last quarter, even though the company was bleeding cash... In the end, this is the third iteration under Paul's management - 3 years ago it was a silver exploration company, then it became an app incubator, and now an investment vehicle. All those years he received a salary - working only part time - while the company destroyed a good amount of shareholder value. I don't deny his investment skills, and hope he can really generate value with this new iteration. But if we objectively look at his track record, as an operator, it is quite disappointing. (Don't you think?) In the end, if Paul was looking at Brisio using the same criteria he is applying to his own investments, would he be buying? (Unfortunately we might not like the answer: canadianinsider.com