BB Liquidating Inc. (BLIAQ)

[eddy2]

Ask your selfs this why didn't the company have any key people looking after things. Cause the assets are given forward for collateral. It's this reason that there is no assets trinsic or intrinsic.

The cash was loaned to pay capital cost for credit hence the accounts payable not late returned or no returned movies.


You have to think creatively as too where the assets went. Now take the outstanding shares " shares owed " as credit is used up the collateral kicks in.

As equity pays the debt the new equity becomes share holders debt owed too share holders in principal plus the amortization of the spent capital to sell the equity " cost above par ". The cost above par is revenue and above that is depreciated returned as profits unless the depreciated tax returns " difered tax's.


Why is it referred to as difered. Well simply put if the company is sold with a positive earnings those earnings or profits are what is referred as intrinsic assets. Value above the trinsic value of the company based on earnings for the share holders.

There is a built in system for any company to grow on deferred tax's. If a CEO and his team where too pay them selfs huge wages out of the revenue generated the company become stagnant. Wages and depreciated assets must be only 80% of the revenue. Depreciation must be the remaining twenty percent to keep a constant growth cycle from an internal source. If external forces are used ie: debt you must have an equivalent source of profit to take advantage of the new excellerated depreciated assets.

A new dollar spent is not depreciated on a linear line relative to the value of that dollar. This is said also for a car purchased or rental property purchased or in the case of a leased premises that you have invested into a lease improvements. The advantage of leasing is that other charges can be linear increasing the cashflow to take advantage of a tax advantage.


With that information how can a CEO and his team and investors have there cake and eat it as well? I will leave that with you to think about. Keep in mind a two tier or sometimes it can be as high as a ten tier structured equity system.

None of this mentioned should take away from the primary business structure and its profits. History often repeats its self. In other words a lease agreement to capital expenditure is and has been some what constant.