Due Dilligence on BAOA.a 15 cent stock that was on the May OTC list for top 100 most actives otcbb.com
that is how I discovered it..and I posted it as soon as I discovered it..
It has "strong" news coming out Tuesday.
BAOA is a reporting company.
BAOA is the symbol.The Name of The company is Black Americans Of Achievement.the web site address is baoa.com
REALLY take the time to look at the web site, clicking on every page,
so you get a good feel for the company and where it is going, where it has been, all that it is involved in, and read this due diligence and read the whole SI thread, and call the company if you need to clarify anything.
The investor relations person Joe Risk is not only easy to talk to, but he quickly fielded any question I asked and I even had to slow him down several times to make sure I got everything he was saying, in an accurate manner. This is only MY DD, and I share it with you as a courtesy, so you can use it as a starting point to do your own due diligence. I am NOT telling you to buy this stock, and do not flame me for my hard work in gathering as much as I could. I am only presenting this information because I believe BAOA to be a solid company, a turn around story, with many good things on the horizon, not only for shareholders, but for communities in the United States, called "empowerment zones", but read on to learn more..
1. Look at the charts for BAOA.
2. Look at the historical volume and pricing.
3. read the past press releases
BAOA has been a quiet sleeper, but is now waking up..
Here are the notes from my conversation with Joe Risk (telephone number and email address can be found at the BAOA web site)
1. A little history first. BAOA has been traded publicly for about 4 years. It originally started by Caucasians that wanted to sell a board game to the Black American Community. They pumped up the stock to near $7 with nothing behind it. (this is what IR (Joe)told me)
2.About 2 years ago Peter Van Brunt came on board to do some consulting for the company, to resurrect it and point it in the right direction. Peter was a well known businessman, leader, attorney and former president of Motown Mandingo Software Division. (I may have misspelled that) Peter, being an influential leader brought Jessee Jackson onto the advisory board.
(for a complete list of advisory board and other "chiefs" in the company, email BAOA, their web site says they will provide that upon written request) About 1 1/2 years ago Peter became CEO and President of BAOA.
3. The management is new/different from when it started out.
4. This is a quote from a not so long ago press release:
The Board of Directors, officers, and the advisory board of notable African American business and professional leaders have
negotiated and signed several contracts and letters of intent which will provide revenue from telecommunications and
entertainment sources beginning in 1998. Management has changed the Company's primary market focus by using in-house
expertise and joint venture contracts for providing nation-wide telephone services such as out source telephone call centers
and long distance products. Management believes that the Company should return to profitability in 1998.
5. Now back to my conversation. Outsourcing and call centers are growing rapidly. They are growing at a 50% rate. For example, in the outsourcing industry at present, in the United States, it is a 6 billion dollar industry, next year it is projected to be a 9 billion dollar industry. Why? Because corporate America keeps downsizing. They can't have employees sitting around waiting to answer phone calls. So, they hire outsource centers to handle the flow of calls. As a hypothetical, you might be calling your credit card company and you are not really talking to the credit card company, but an outsource center, or a call center, where people have been hired to field the calls. It is cheaper for corporate America to do it this way, and more efficient. This tele-service building can seat anywhere from 200 to 1500 people per call center. Additionally, call centers are used to field those calls for ordering products, that you see on those late night and weekend infomercials..
6. BAOA has already acquired a call center in Atlanta. It is projected that this July they will begin working on the building (setting it up, remodeling it to serve the purpose, to generate revenue, create jobs for those living in "empowerment zones", this doesn't just mean Black-Americans, it means anyone living in those zones.
7. The Federal Government has designated 6 zones in the country as "empowerment zones", in which there are tax credits and government funding to create jobs and training for unskilled or uneducated work force. Over one billion dollars has been dedicated to this project (I am NOT talking about just BAOA, but in general terms) This is supposed to be increased in the future. Atlanta is one of those empowerment zones. Two companies that have capitalized on these projects, I am told, are Kinkos and Rolls Royce. Well, think about it, and think about the community.
Not very practical, and hasn't really been effective. Now BAOA steps in with something viable. They can create 400 jobs, where there is no education needed, and training can be supplied through a non-profit organization, RIGHT THERE in the call center. It is community driven, and there is day care available, and an at-risk youth center, and a computer learning center. It's not just a "baby" center, but an educational center.
BAOA has provided an elegant solution to utilize government funding that will not only help the communities their call centers are opened in, but will ultimately generate revenue and jobs. The training facilities will be subsidized through government funding. The Atlanta Call Center is a 40 thousand square foot building with 3 floors. IR emphasized that this is not a "black thing, or a white thing, but an economic thing" The jobs created through BAOA call centers for some people will be their career and livelihood, and for others it will be a stepping stone into other careers in the communications industry. Many positive things will come from this that will impact many people. The Atlanta Call Center should be up and running in September.
8. It is projected that in the first quarter of 1999 that a call center in Harlem will begin operation.
9. There are talks about possibly call centers in Brooklyn, Bronx, and 2 in the Los Angeles area, one of which will be multi-lingual. But Harlem would be slated next on the list, after Atlanta (read the press releases and you will understand why)
10. Many of the shareholders in BAOA are "in" at much higher levels than the share price is now.
11. I asked Joe what is the outstanding and the float. I was told 7 to 8 million in the float. 33 million outstanding. (they are authorized up to 50 in the OUTSTANDING, not the float)
12. I asked how is BAOA generating revenue now, BEFORE the call centers are operational. He stated from private placement of stock. I asked, about the private placement and how much is being paid for these shares. I was told 25 cents a shareis the price they are being bought at). (Now I tell you to look at the current share price of BAOA..it is LOWER than that, which obviously means that the private placement shareholders are buying in at a higher level, looking for it to move higher than that)
13. Joe said there will be a "strong" announcement (news) coming out Tuesday. This will be part of a series of future announcments.
14. Other information I was given about securing some kind of large order, I will not post here, because my notes got fuzzy on that, as I reread them, and I will let others pursue due diligence on that, because I am not sure, and it wasn't personally important to me, because I liked everything else I was hearing/learning.
15. Minor stuff.I was told (and this is NOT the focus of the company), is BAOA is also having a line of clothing called BAOA gear (t-shirts, hats , funky designs etc), prepaid calling cards..which will probably also be marketed through the call centers rather than traditional marketing. (minor stuff compared to the big and aggressive focus of the company)
16.I was told that after Tuesday's announcement, BAOA will be looked at in a different light by the investment community. (There MAY be announcements of affiliations with some fortune 500 companies) I only want to present facts, and am just summarizing my conversation to the best of my ability. I do NOT want to hype anything, I only want to inform. So I STRONGLY suggest that you do NOT invest in any stock without getting information first hand.
Go to the BAOA thread on SI. There are some long term investors there that have been with BAOA since it's inception. They have been very patient, knowing there were good things to come, and now is the time the good things are happening. They also mentioned on the thread about some meeting in May in NYC where Jesse Jackson spoke and BAOA got to share it's story, and brokers were there. (I didn't verify that, or ask,but maybe someone else can)
The irony of BAOA is now that it is doing the most, and has many concrete revenue producing plans underway, and new management, new vision, the stock price is at some of its all time lows, because they have been quiet, in what I believe an effort to prove themselves, to regain a solid reputation after cleaning up the mess of the old management and old vision. I also like the duality of them helping communities and individuals at an economic level, taking advantage of government funding (the way it was intended), while capitalizing on an entrepreneurial vision. Please take further discussions and DD to the proper BAOA thread.
(Jetta obviously this wasn't directed at you, but to post I had to "respond" to clicking on someone :)
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