Biokey International Inc (BKYI)

[SeanBoy]

What do think about Q2...another stinker?

Over the past year two things concerning BKYI were very obvious.

1. When CGG stuck $8M into BKY at the end of Oct. 2015, buying BKYI shares at 16 cents was like finding money in the street.

2. When MD failed to give quarterly guidance, Q1/16 would suck.

There is one other thing that looks obvious and that is that the CGG deal is a boom to BKYI, not a scam as some have portrayed it. Mr. Fong's buying pretty much erases all doubt.

The rest is not near as clear.

Okay so what does all this mean to Q2? I think we need to look at why did Mr. Fong chose to buy when he did. If Q2 was a blowout Q, he's guilty of insider trading, maybe.

If Q2 were "another stinker", he's going to have a hard time maintaining the 28 cent pps (and one has to believe that at least part Fong's buying was to raise the pps).

So, based on that, I believe it should be an average Q, which last year was $1.33M.

But that's as much of a WAG as it is a calculation. The one thing I do know is that he caught me by surprise, I though the gravy train (and by gravy train, I mean the ability to buy in the teens) had another Q or more to go.