Bloggerwave Inc.(fka BLGW)

[Lucky_Charm$]

so whats this mean for BLGW? >>>

FROM 8K on Mar 11

the Company’s auditor Davis Accounting Firm, P.C. (which is now known as Etania Audit Group P.C.) (“ Davis ”) did not have a valid state license from the Utah Division of Occupational & Professional Licensing when it issued an audit opinion with respect to the Company’s financial statements for fiscal years ended December 31, 2009 and 2008 (the “Subject Period”) and accordingly, such financial statements are not considered to be audited. Accordingly, the financial statements for the Subject Period in each of t he Subject Financial Statements and Subject Registration Statement should no longer be relied upon.

The Company anticipates that in response to the comments made by the Commission, it will, at a minimum:


(i) communicate with its former internal accountant to obtain the necessary information and work papers for the Subject Period;



(ii) after receipt and review of the above referenced information and work papers, determine if the Subject Period is auditable, in which case the Company will file a Form 8-K disclosing a change in auditors;


(iii) in the event that the Company is unable to obtain the necessary information and work papers for the Subject Period, “reconstruct” the accounting records;


(iv) engage an accounting firm that is duly registered and in good standing under the laws of the state of its residence or principal office and registered with the Public Company Accounting Oversight Board (the “Qualified Auditor”) to re-audit the Company’s financial statements during the Subject Period; and


(v) once the New Auditor has re-audited the Company’s financial statements for the Subject Period, amend the Subject Reports and Subject Registration Statement to include such New Auditor’s report.



The Company’s management, board of directors and current internal accountant have discussed the matters disclosed in this filing.

[Lucky_Charm$]

8K Mar 11 http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7791072

[Lucky_Charm$]

still watching

[RACKnRICKY]

still here watching and waiting,avg vol is up though.maybe 011 is bottom/support?

[downsideup]

Called this morning and had a nice chat with Steve Finnell.

My effort in doing the DD here is proceeding a lot faster than I thought it might... so have considered it might be useful to start chatting with people at the company.

For those keeping score... that makes BLGW only the sixth company in my IHub tenure that I've found it worth bothering about enough in doing the DD to call them. That's because I generally won't have a need to contact a management just to take the pulse of a situation (one exception) or to make generic inputs through the grapevine... and don't generally need or want hand-holding from IR... so won't bother with it if I don't find a reason to think there will be value added as a function of making the effort...

Have pretty well defined that BLGW has a very real opportunity, or, perhaps, more than one that results from "looking at things properly". Now, I'm focused on trying to define some of those things I'm seeing in the market in more actionable terms.

A couple of right moves made here... and, IMO, this could have a much, much shorter fuze than some people are thinking.

[downsideup]

I've started digging around a bit deeper into the blogosphere, having a look at a couple of things related to the products, competition, and opportunities in the market space now...

Some of what I've come up with is "pretty interesting" but not stuff I'd particularly want to post about here on the list, as it might be as useful to some of BLGW's competitors as to BLGW, without doing much for those here looking at the potential in the space and this company.

Not sure what I'll do with it yet... but, for now, still working on understanding the situation better...

I've not seen anything yet that suggests anything other than a situation with a whole lot of room for innovation, and a whole lot of unmet needs... many of which it appears have not been well defined by others... or perhaps have not yet even been identified.

[downsideup]

Cool...

Still might be hard to see much that matters at L2, but, it is a lot better having it there than not having it... and it may even be looking a bit thin there at $0.014, now. Not at all sure that NITE cares very much about any of the lines they're posturing.

Volume is pretty light and tapering off. Looks like any short term traders left over from the pop at the end of January took their profits and are done, while the trade over the last month appears to be moving a lot of shares from softer weak hands to tougher skinned and stronger hands.

Charts are looking pretty good, too, showing it appears to be putting in a bottom...

Also really nice just to see that "something happened"...

Agree with others that it will be really interesting to hear more about what they plan do next in advancing the business... and more interesting yet to see them actually do it and succeed... but, for a well below the radar turn around play in the social media space... moving to the OTCQB right now is a pretty nice thing to see.

[Lottalead]

House is in order, financing package in place... we are all waiting for Ulrik to issue a public update and share his plans for the future.

[tsunamikimo]

BLGW has been moved into OTCQB


The U.S. Reporting Company Marketplace

OTCQB is the middle tier of the OTC market. OTCQB companies report to the SEC or a U.S. banking regulator, making it easy for investors to identify companies that are current in their reporting obligations. There are no financial or qualitative standards to be in this tier. OTCQB securities may also be quoted on the FINRA BB. The OTCQB allows investors to easily identify registered and reporting companies traded in the OTC market regardless of where they are quoted.

This gives you FREE Level 2 at market otc...

www.otcmarket.com

[downsideup]

I agree, and certainly find it "interesting" here.

I probably wouldn't, if what a quick look at the DD showed was that, like WAY too many "managements" at this end of the market, they were focused on "making money" by selling large numbers of newly minted shares, with a bottomless pit in the authorized, instead of staying focused on making money by generating success for themselves by making the business work.

They're running a pretty tight ship, and seem to be doing about as well as you could expect, being as tight fisted with their equity as they are tight fisted when spending their money.

They've weathered the recession...

They've figured a few things out in the process...

We still need to see what it is they're planning to do with the little bit of $$$ they raised in the latest round... need to see some adjustments made to address the changes taking place in the market now...

How much of where they are now is a function of changed market conditions over the last two or three years, and how much is a result of "disconnects" between the shifts that ARE taking place in the market, and "misses" in the product offerings they (and competitors) have put out there to address them?

If they succeed in "breaking the code" that seems it has locked this market for the last year or two... and do that in a way that enables showing a real acceleration or two in some few metrics... then, this could be "off to the races" sooner, and move a lot more, than many may expect. That might even happen only as a function of change in the market...

Otherwise, it seems they've weathered all the more recent bad news handily enough... with a proper enough set of responses that it does a lot more to address and dispose of the elements of risk than they appeared to posture. They continue running a tight ship... have the right focus on the opportunity... and have a lot of opportunity, now, to address moving things forward, growing the business on the "organizational" side, improving their position, building the team, etc., as well as being well positioned, now, to move things forward on the "performance" side...

This still looks to me like it could easily trade quite a bit higher than it is, now, without that being a result of anything other than changing patterns in the market and the trade... market noise... charts, etc.

If they, and the markets they're addressing, "figure it out" ?

Then, we're not going to be here talking about "market noise" and chart patterns tied to trading, or about moves of a couple of pennies tied to change in market conditions or perceptions of the "junior company" risks...

JMHO

[serafin1982]

I have 5 thousand invested around 3 cents and if I had more to invest right now I would invest much more at these levels!

[downsideup]

Business Plan from the webpage, dated Nov 2009. Apparently was written when they were first seeking $ to expand to the U.S.

http://bloggerwaveinc.com/files/58/files/Bloggerwave_Business_Plan%20final.pdf

[downsideup]

Top Ten list from the webpage:

Top Ten Reasons to Invest
Social Media Optimization is the latest and most important component of any successful marketing campaign. Companies are increasingly turning to Bloggerwave for their Social Media Optimization needs.

Bloggerwave gives companies access to thousands of bloggers (and millions of blog readers) around the globe, instantly.

Bloggerwave is a young, dynamic, innovative start-up company with enormous growth potential.

Bloggerwave's clients include some of the most recognizable brand names in consumer culture, including Coca Cola, m&ms, Sony Ericsson, and Citibank.

Bloggerwave is the most successful company among its European-based competitors.

In the Internet Age, companies are constantly looking for ways to increase their Search Engine Optimization. Bloggerwave helps them with this.

Bloggerwave has a lean and flexible management structure, with low overhead.

Bloggerwave gives its clients a credible form of publicity that no traditional ad campaign could ever achieve.

Bloggerwave has demonstrated that it directly helps companies improve their bottom line. For example, it generated huge Internet hype in Danish markets for Sony Ericsson’s shake-control mobile phone. The phone sold out in Denmark after one week.

Bloggerwave sets itself apart from the competition with its personalized services and tailored campaigns.

[IL Padrino]

I'm in the same boat and had to average down. Now avgd at .21 but will average down some more later. Due to the TOS, I can't suggest some other stocks, but if you look at the one's I'm invested in, I'm pretty hopeful on a few of them which look very promising.

[downsideup]

Looks like a new face for the webpage ?

http://bloggerwaveinc.com/default.asp

Maybe I'd just missed it before. The other one is still there:

http://www.bloggerwave.com/

[dollars2bhad]

nice work guys

[Lottalead]

Yes, here it is:

USE OF PROCEEDS


This prospectus relates to shares of our common stock that may be offered and sold from time to time by selling stockholder AGS Capital Group, LLC (“AGS”). We will receive no proceeds from the sale of shares of common stock in this offering. However, we may receive proceeds of up to $5,000,000 pursuant to the Reserve Equity Financing Agreement dated December 13, 2010 between our Company and AGS (the “Equity Financing Agreement”). Any proceeds from AGS that we receive under the Equity Financing Agreement will be used for working capital and general corporate purposes, including for a new version of our software and the payment of the fees and commissions incurred from entering into and consummating the transactions contemplated by the Equity Financing Agreement.

I could barely keep my eyes open last night when I was reading it, so I'll go over them all again. I wonder if Mr. Poricelli still owns his 5m shares... I bet he does.

[downsideup]

Somewhere I saw a mention, in the S-1 I think, saying they were going to use some of the $$$ to update their software or the website...

They're certainly not going nuts spending a whole lot of money and wasting it... not even paying salaries to the execs...

For me, the bottom line in the DD process is still going to be needing to find a way to be able to parse the probability of and timelines for generating success... given the nature of the risks they face.

I'd like to see more from them in the way of what they're thinking that they'll have a need to accomplish to succeed... and more about what sorts of things they think they CAN do to increase their market penetration, and help tip scales in terms of getting BLGW out in front, both creating and surfing the wave...

I think they may need to do more, to get things going, than simply provide a site that is a venue in which bloggers and companies can meet. To make a raging social media success out of it, they'll need some ability (whatever the source of that ability) to recruit great writers, a stable of skilled bloggers that companies want, and solid companies, those that are willing to spend enough, willing to commit early enough to the concept, that the connections formed will really matter...

Might need an ability to sort product based on quality...

I'll want to see them deliver some obvious successes... some of which is going to be hard, perhaps, given that publicizing them too well might also tend to undermine the value of the impact of success for corporate clients ?

Would certainly like to see them talking to some people who might have some broadening experience they could bring to the management or the board in an advisory capacity...

If the function is going to replace legacy media advertising... it might still be necessary to have some tools available to bridge the gaps between past and future...

With a solid enough line up of bloggers able to deliver quality in volume... there seems there should be some ability to close loops between the functions you'd expect of a purely social media based web operation... operating as a clearing market for direct transactions between corporations and bloggers... and what you'd expect to occur in legacy media transactions...

I'd love to see them consider working as a service provider with a legacy advertising agency... which might, if nothing else, provide them with a lot of interesting "perspective" on things... that it might be necessary to have a "perspective" on to enable this to take off...

[Lottalead]

This is the only thing I see in the filings as far as use of proceeds, boilerplate language..:

Section 4.22. Use of Proceeds. The Company shall use the net proceeds from this offering for working capital and other general corporate purposes including paying relevant fees and commissions incurred from this transaction.

[Lottalead]

Good stuff.
I expect we hear something from the company soon explaining what plans they have made and which direction they will go.

[downsideup]

Here's the "history" or "the team" page at the AGS website:

http://www.agscapitalgroup.com/The_Team.html

Here's how they describe their "Reserve Equity Financing":
http://www.agscapitalgroup.com/Reserve_Equity_Financing.html

Their "Linked In" page says some of the same stuff:
http://www.linkedin.com/pub/ags-capital-group-llc/17/57a/104

Zero connections ? Hmmmm...

Might be more useful to see what other connections do exist, and what sort of an experience others have had ?

My quick look shows TTCS, TIE Technologies, announced a $15 million financing with them last year: http://www.foresceneweb.com/New-York-Web-Design-news/tie-technologies-secures-15-million-reserve-equity-financing-facility-with-ags-capital-group/

Looking at the TTCS charts, I don't see obvious evidence of significant shorting activity...

It is actually another that has shown up on my "bottom fishing" screens recently... so, I'll probably be looking at them a bit more closely now..

[downsideup]

Well, now THERE is some stuff worth doing the DD on...

8K announcing financing:
ehttp://www.sec.gov/Archives/edgar/data/1446727/000114420411007680/v209009_8k.htm

Registration Rights Agreement:
http://www.sec.gov/Archives/edgar/data/1446727/000114420411007680/v209009_ex10-2.htm

Form of Advance Notice:
http://www.sec.gov/Archives/edgar/data/1446727/000114420411007680/v209009_ex10-1.htm

Form S-! Registration Statement:
http://www.sec.gov/Archives/edgar/data/1446727/000114420411007871/v210917_s1.htm

I've read the 8K and attachments, and skimmed the S-!. All will get a more thorough going over "soon"...

For now, it is an agreement for a limit of $5 million in the 8K announcement, with a limit of $317,992.50 stated in the S-1, which is a number that just happens to equal their current working capital deficit.

I note from the S-1 that the additional funding comes from an existing shareholder:

"Allen Silberstein (3)
c/o AGS Capital Group, LLC
2 Water Street, Suite 17G
New York, NY 10004 11,976,000 8.83 %

Mr. Allen Silberstein directly holds 5,988,000 shares of the Company’s common stock. He is the Founder, Principal, Chief Executive Officer and Chief Investment Officer of AGS Capital Group, LLC (“AGS”), which holds 5,988,000 shares of the Company’s common stock. Therefore, Mr. Silberstein may be deemed to beneficially own the 5,988,000 shares of common stock held by AGS. Mr. Silberstein disclaims any beneficial ownership of the shares held by AGS."

The financing will result in AGS, who already owns 5.98 million or 4.42% beneficially, adding the "Shares to be Sold in the
Offering Assuming The Company Issues The Maximum Number of Shares being Registered Under the Reserve Equity Financing Agreement"... that is, 21,199,500 shares, bringing their net ownership interest up to 20%.

The agreement contemplates the investors making no management inputs, and taking no seat on the board, etc.

I've not yet dug through things to find enough about the "use of proceeds" to see what they'll be looking at doing when they fill the working capital deficit hole...

[Emalker]

@downsideup - Try to catch Ulrik on skype(skypename=ulrikst)
http://bloggerwaveinc.com/pages/1094/management-team

[downsideup]

I think that is probably correct... and it probably is an unexpected side effect of BLGW management having screwed up the share accounting exercise and having to correct the numbers.

A 5% bite of the current 135,625,000, would be 6,781,250... so they could add over 1.75 million more without having to report it... but, also wouldn't have a need to report it if they've decided to do that.

It looked to me like it had bottomed and was going to hold above $0.03 and then move higher again, at the point where they bought in. I don't think it was possible that the stock wasn't going to take a pretty nasty whack from having the news they did after the end of October. Someone did apparently make an effort trying to get it to stay stuck there, hanging on to the $0.03 line like a chin up bar, until the middle of November...

I'd just begun doing the DD here when the news on the screw up on the share count came out... so, having a bit more patience from that point made a lot of sense...

It looks to me like the market has already metered out the appropriate punishment and a well enough metered set of share price corrections, and the gnashing of teeth seems it is over now.

The errors made are clearly not inconsequential... but, in terms of the big picture... for those looking at it now, it really doesn't seem to have much potential to matter...

If BLGW is able to make the business work... I'll be glad enough for the chance to buy shares at some significantly lower prices than I'd probably have had available to me otherwise...

If they can't make the business work... well, it probably won't be the share count error that will be the difference maker.

Looks to me like they've got corrective action in hand, now. Still means a need exists to keep a close eye on things, and see that they continue along a path that has them improving their organizational and management situation relative to what they had...

I'm still thinking that the outcome of the play is going to depend a whole lot more on the successes the business is able to generate... or not... over the next year or two.

Not like Facebook hasn't had a few similar issues...

From here... I'd like to focus more on those issues. The market and potential... the things the company is doing, or thinking about doing, to better enable success. The business model isn't rocket science... which doesn't mean it will happen all by itself...

Might be worth calling to chat with the guys out in Colorado, to see what they're thinking... and it might be worth calling to chat with the company, too... as in this play, I don't really see that there is any other way to figure out much about what is happening as they seek to make progress in developing the market.

I'm not over my cold yet... but, I'm feeling better... so will try to get some of the more basic DD type stuff done here over the next week or two...

[Lottalead]

In this form 3:
http://sec.gov/Archives/edgar/data/1446727/000150027510000001/xslF345X02/primary_doc.xml
,they show ownership of 5m shares and list it as 5.3%.
5m shares is less than 5% ownership of the current 135,625,000, so am I correct in assuming they will not have to file if they add or sell up until they cross that 5% ownership threshold again?
Looks like they accumulated those shares in the .03-.-4 range, maybe even higher on those high volume days in mid August.

[downsideup]

You also might find it useful to check out the links at the bottom of any page that will take you to "Terms of Service" and "Site Map & FAQ's"...

IHub isn't perfect... but, it is quite a bit better than a lot of other investment focused sites, and it works as well as it does mostly because the rules they have do "tend" to work to keep conversations on stock specific boards more or less on topic.

If you've made an effort doing solid DD re BLGW, its clients and customers, its board and management, or its markets and competitors... we'd LOVE to have you share that with us here.

If you just want to chat about your opinion re BLGW or things related to it... this is the place.

If you want to flog other stocks... you should go to the boards for those stocks to discuss them, or else find yourself one or more non-stock specific boards where you feel comfortable chatting with the regulars, where that sort of discussion is usually welcome.

[tsunamikimo]

This board is for Bloggerwave, Inc post only DO NOT pump any other symbol..

Thanks..

[downsideup]

Snagged a few from the middle of the bands right before the close...

Hopefully, will kick this cold I've got over the weekend, and be able to get back to a bit more active participation here...

[Lottalead]

Didn't take you long to learn how to start pumping stocks.
On the wrong board to boot! LOL

[downsideup]

You might find it useful to check out a couple of things here on IHub, as well as on other sites, that discuss investing basics.

At the bottom of every page on IHub you should see a link to "Stock Market 101" that includes a lot of what is some overly basic advice in links like this one: http://learn.advfn.com/index.php?title=Warnings_for_New_Investors

Check out the link to the Investopedia tutorial on investing scams from that page.

IHub also has some great resources that should help you learn to figure out what a scam looks like well before you get too deeply involved in one... but, like everything else, you do need to learn to exercise your own judgment in determining who to listen to while learning. There are a number of lists, here, that focus on following serial scammers... and learning what a scam looks like from the start is a useful life lesson for any investor... while the lessons you learn from watching penny stocks are just as useful for you in other markets as they are here.

Probably the biggest mistake novice investors make is in assuming that there is ANYONE in the market who is honestly working to try to make the stock market a "safe" place for investors. The fact is that both the regulators, like the SEC, and the industry bodies, like FINRA, have a mandated focus on working to make the market APPEAR safe, to generate the benefits in the assumed safety, that work for those who intend to profit by parting schools of snooks from their cash.

The sooner you figure out that 99% of what you read, and that 99% of everyone in the market are not to be trusted... the closer you will be to having a proper grounding...

Don't trust anyone to do your homework for you. Expect it will take two or three years of effort before you've mastered the basics well enough that you can expect something better than random chance of success... while noting, as you have already, that "investing" by relying on others to "tell you what is hot" is likely to not work out.

You can't "invest" if you don't first know the companies whose stocks you own, the people who run them, everything there is to know about their businesses... the markets they address... their customers... as well as if they were your own business. If you aren't doing "due diligence" that well... you aren't investing in those stocks... you are playing roulette, and that means ensuring that the house wins, not you.

If you don't learn how to differentiate a "winner" from a "pig in a poke" by yourself... a good company with a chance to succeed from a total turd that will never float... why would you ever expect you SHOULD trust any others in the market, who are willing to sell you a pennies worth of stock in those turds for $1, while making themselves a handsome profit in the deal ?

The stock market is a CONTEST... and the game is played by a lot of serious people who know what they are doing. You need to know what they know, and know what they are doing, too... before you should expect to win a single hand.

[USMC_COMBAT_VET]

Downsideup: I appreciate your point of view posted and don't take it the wrong way. I certainly am not as well versed in stocks and market awareness as you are. I simpley consider myself a beginner at this and started playing around with penny stocks around a year ago. Out of all these investments I have made:
BLGW BLOGGERWAVE INC
AMCG Amico Games Corp
FIZZ NATIONAL BEVERAGE CORP
HHWW HORIYOSHI WORLDWIDE INC
KV.B KV PHARM CO
SGCA STRATEGIC AMERICAN OIL CORP
ADSV ALLIED SEC INNOVATIONS INC
AP AMPCO PITTSBURGH CORP
SRCX STONEBRIDGE RES EXPLORATIONS

I have seen nothing but huge losses. I still have all of them and have not sold. Some of these have tanked to .0002 UNREAL. I need to have a better understanding on what to take a chance on and what not to AND when to get OUT if something is going to tank.
For example SRCX above. Is it even still alive?

[Lottalead]

I agree, and after seeing your alert, I started to accumulate. Thanks.

[downsideup]

You said:

"ALL THESE PENNY STOCK ALERTS ARE HORSE CRAP JUST TO GET PEOPLE TO BUY AND LOSE OUT."

Well, yeah... that is EXACTLY what they are... a sales effort that is specifically designed to sell you, so that you will be willing to buy something someone else really wants to sell...

Stocks basically aren't in the least bit different than anything else in the market place. Do you really think you can "avoid disappointment and future regret" buying fake coins off the TV, even when they TELL YOU they are nothing but copies of U.S. $20 gold coins that are coated with a whopping 14 milligrams of gold ? You really think those fakes are worth $50 each ? Just the fact they're paying huge $$$ for TV advertising should tell you all you need to know about the "value" in what is being pitched ?

Pretty much like clockwork, you can take all those penny stock alerts you get and put them in a file... and check the prices on the things being flogged again in 6 months or a year. That is all just a fairly normal part of the market cycle... to see things shift dramatically from the one end of the extreme in the "hype" driving over-valuation... to the opposite extreme in the market where fear and loathing drive excess in under valuation.

It is a hard lesson for many in the market... that "price is not value"...

There is basically very little difference IN VALUE between what BLGW was worth a year ago, and what BLGW is worth now... while most of market pricing difference in that time period is nothing but market noise. That change you see in the price over the last year has very little real impact, and does very little to change anything that really matters... in the business.

My primary focus in the market is on finding value on sale... buying it at a good price... and holding it until the value I see is properly realized in the share price. To do that, I need to understand and be able to properly price "value"... and need to understand and be able to discount "market noise" in pricing functions... which are OFTEN wildly wrong in being WAY off... either way to high... or way too low.

Buy low... sell high... Obvious, of course, but not ever quite as easy as it seems it should be.

I've not yet declared BLGW is a "value" or a "buy" at current prices... but, I've found it is certainly interesting enough, given where it is now, to decide it is worth taking a closer look at it.

In the last year, management has gained valuable experience, and understands things about their markets now that they probably didn't understand as well just a year ago. In that time, the larger market awareness of and valuation of "social networking" functions like that BLGW addresses has changed dramatically. And, in that time, the markets themselves have shifted from the depths of a depression to a still slow but creeping emergence from a local recession in a transition back to global growth.

Advertising... always gets pounded in a recession... so, there is an interesting element of market timeliness in BLGW now, too.

In every way I see, BLGW is probably in a better position now and in a better market position now than they were a year ago... and, now, while it is probably worth the same or more than it was just a year ago, I can buy a share for $0.02 now, instead of $0.75 a share a year ago ?

I still haven't figured out the nature of the potential, here... and don't have a solid price target that isn't one that is "market referenced"... but, I also don't see much of a reason BLGW couldn't trade up to $0.04 or more from here... just based on changed market dynamics.

I'd rather take the risk here, and have all the same upside, while buying at $0.02 than $0.75...

Hope you don't take any of this as "taunting" you... as that clearly is not my intent...

Rather... if you thought BLGW was a "good value" at $0.75, and you still don't have any reason to think that the potential you saw then has substantially changed... why is that value of $0.75 or more NOT a really, really great deal when it is on sale for $0.02 ?

Have you averaged down yet... to lower your average price ?

[downsideup]

Looks pretty tightly held, to me, and I don't think that there really are all that many shares out there in play...

Yahoo says:

Shares Outstanding: 135.62M
Float: 124.62M
% Held by Insiders6: 61.77%

The percentage held by insiders works out to 83,772,474 shares, leaving only 51,847,526 held by the public... around 50 million after considering the holding of the investment group from Colorado.

The brief history seen on a weekly chart shows that when it was run up to a dollar, accumulation topped out at around 8 million shares, and now, some months later, with it looking a lot closer to exhaustion near the depths in a market low, the distribution also has maxxed out at around 10 million shares. That says maybe as many as or even a bit over 10% of the shares have been in play during the shifts in the trade thus far ? That would be around 13.5 million shares in the flux. While that is possible, I'd be pretty surprised if it were that many...

For a stock that's been through the gyrations this one has in the last year, it seems there aren't all that many shares participating in the trade. Certainly seems that the insiders are holding pretty tightly onto the shares that they have.

Anecdotal evidence suggests that there are still some few holders from last year who are continuing to hold, and continuing to express confidence in the long term potential of the company.

While I'd be surprised if shorts weren't "mostly" responsible for the direction of the trade in the first half of last year, shorts don't appear to be an overly large part of the current trade. Chart patterns still look like someone here may have been playing the short side until just recently, but the obvious volumes in that trade look like they're generally still under 1 million. Doesn't mean there aren't still some unresolved short interests left over from last year, either... but, it looks to me like any shorts who were still playing here have covered recently, and, given the early and recent history, it doesn't appear to me to be a particularly appealing short candidate anywhere near the current levels.

A quick look at the Yahoo Key Statistics isn't anywhere near the limit in DD that needs doing, but, they show a Market Cap of 2.45M against an Enterprise Value of 2.98M and only $288K in debt... which, for an .OB stock that is current in its SEC reporting requirements, etc., isn't exactly indicating that there are any obvious issues with over-valuation.

None of that above does much to make much of a case for any significant upside, either... but, it defines a situation in which the typical sorts of business and market risks that exist for an early stage company appear to be at least properly discounted...

Given where they are trading now... they are trading close enough to the value of a solid OTCBB shell to suggest that the risks are probably well enough balanced...

There has been a fairly steady drip of bad news openly applied in the last few months... that appears likely to have both provided some basic "welcome to the U.S. market" lessons for management, along with some significant degree of distraction.

Looks to me like they're on track in delivering a solid enough set of responses to that set of challenges...

I'm not one who does the DD looking for a "perfect" management that has never made a mistake... rather than one who wants to see a few mistakes made, and addressed, to see how management handles problems, corrects mistakes, and adjusts their effort looking forward. Too often, I see inexperienced (and, sadly, well seasoned) management teams that will allow their pride to overwhelm better judgment in how they deal with unpleasant realities.

Thus far... I like what I see here... not because it is perfect, but, because it shows a young management that has been presented with a couple of opportunities to amplify obvious mistakes with inputs that appear to be focused on something other than making proper corrections... and, they appear to have consistently chosen "doing the right thing" rather than anything else.

For me, having a management you can trust to do the right thing when they are faced with the need for admitting a mistake... is a VERY basic thing that I value a lot. Of course, it isn't nearly enough, in itself. You still need to see they can do something other than make mistakes that need correcting... and can make corrections that matter in the business without those problems first generating failures, before they are motivated to act in implementing change and making better choices.

The best management there is won't be able to deliver a success in a project that isn't well positioned or properly structured to make it possible to enable one, so, the DD challenge from here is to consider the potential, and what is needed (including what is needed from them) to best enable them in exploiting it. The result delivered will be due to their effort, and it isn't going to be measured against any fixed standard... rather than against the reality of market utility and market acceptance...

IF they are able to make it work... BLGW could prove to be HUGE...

So... broadly stated... the DD question is: given the potential and the opportunity they have, what has to happen for them to be able to make it work ?

There ought to be some milestones we should be able to generate for evaluating progress in the business... that will allow us to focus on some things other than success in "fixing mistakes"...

[USMC_COMBAT_VET]

At this point it wouldn't make a whole lot of sense to sell. I don't know what to do with it aside from holding and hoping. You have any leads on good penny stock?

[Lottalead]

Youch.. and still holding?
I hope it gets back to your buy price soon.

[USMC_COMBAT_VET]

DONT FEEL BAD I BOUGHT THIS STOCK AT .75/SHARE BACK IN 4/10 WHEN IT WAS SUPPOSED TO SKY ROCKET. AT THIS POINT I THINK ALL THESE PENNY STOCK ALERTS ARE HORSE CRAP JUST TO GET PEOPLE TO BUY AND LOSE OUT.

[Lottalead]

Someone sold me a whopping 6k shares at .013 a couple days ago.
Lucky me.

[serafin1982]

same here, requiring lots of patience here

[RACKnRICKY]

still here,still watching

[medimpact]

Great insights. TIA for the DD.

[downsideup]

The latest amended filing has what is a pretty good overview and intro to the company splashed on pages 4 through 11, or 12 if you include the "strategy" bullets.

http://www.sec.gov/Archives/edgar/data/1446727/000114420411004130/v208919_10kta.htm

[downsideup]

I'd never rely on data from a broker... rather than going to original sources...

[downsideup]

Took a quick look at the accounting, not yet with a purpose focused on parsing things in the numbers, but with one on parsing possible issues with their number crunchers. There clearly have to be issues there, given what you see in the revisions they're having to make, so, need to look at that and see what's there now.

They list TWO accounting firms... one of which clear is a problem, and one of which seems it is not.

I took the info from the 8K
http://www.sec.gov/Archives/edgar/data/1446727/000107878210002416/blogger8k102710.htm

That says: "June 30, 2010...

"Our chief executive officer and chief financial officer, under authority granted to them by the Board of Directors, discussed all of the foregoing and reviewed it with Davis Accounting Group P.C. and M&K CPAS, PLLC, our independent registered public accounting firms for the periods mentioned above."

A search for the Davis firm brings up this PCOAB missive:

http://pcaobus.org/Inspections/Reports/Documents/2009_Davis_Expanded.pdf

I didn't work at it too hard, but the website I found for these guys was an obvious dead end... as in, just not there any more ?

A search for M&K CPAS, PLLC gives you this from the PCOAB:

http://pcaobus.org/Inspections/Reports/Documents/2009_M_K_CPAS.pdf

"This review did not identify any audit performance issues that, in the inspection team's view, resulted in the Firm failing to obtain sufficient competent evidential matter to support its opinion on the issuer's financial statements."

I called their audit group at [phone] and they confirmed for me that BLGW are in fact currently their clients.

There are two patterns apparent in the filings... One clearly shows they appear to be having some fairly significant "issues" with transitioning from what they started with and what they did with it in Europe, to what they have a need to do here. The other is that they do seem to be making a proper corrective effort to get that transition done, and don't seem to be dragging their heels in the effort. Since filing the NT10-Q in November, and announcing non-reliance on prior filings, they've put out 7 amended filings, all within the month.

The filings include a history showing they've fired a couple of "advisors" and retracted and/or canceled their compensation... they also appear to have gotten shed a non-performing accountant.

They've made some changes to the board, also, apparently seeking to make adjustments to better meet their needs... but didn't do that properly, either, in terms of notifying the shareholders before doing it...

Looks like a pretty steep learning curve... but, it doesn't look like they're inflexible, doesn't look like they've been screwing up on purpose, and it doesn't look like problems aren't getting fixed promptly...

Instead, there appears to be a bit of a "ready, fire, aim" issue... and a fairly aggressive bit of follow up happening, to try to deal with fallout resulting from mistakes.

They clearly have needed some help from and could clearly use a steadying influence from some more seasoned advisors, who aren't out of their depth in a public company...

They appear to be making the necessary adjustments...

They obviously need to manage better, get things settled down soon, and get a proper decision making process in place, that will have them making better decisions the first time...

If they can re-allocate most of the energy we see here that is being applied to fixing problems that didn't need to be problems... and instead of using all that energy to address the correction of problems, they apply it to things that matter more in the competition in the space they occupy... ?

I think the business model is interesting enough... and it is a very good thing they have the history of successes they've had in Europe as background...

I think the management is obviously raw, but they seem talented enough, if also obviously inexperienced...

I don't see any obvious evidence that they are ethically challenged... which would be an obvious show stopper for me...

I think this is one that is worth a look. If they ARE able to get through this bit of external noise and be stronger for it once they get things settled down, and then can make some noise of their own in the market, this could prove to be quite a find.

So, I'll be taking some time to do a serious job of doing the DD on this one...

[medimpact]

Yeah, I realize now that whoever entered the data at Scottrade misplaced the coma by one order of magnitude. Thanks for clarifying that.

[tsunamikimo]

Thank you for the reply on this..

[medimpact]

Yes, I have. What confused me is that Scottrade still has the O/S at 13.56 Mil.

[downsideup]

From the last two filings:

The number of shares of common stock outstanding as of January 21, 2011 was 135,625,000.

As of March 30, 2010, there were 119,700,000 shares of the registrant’s $.001 par value common stock issued and outstanding.

The authorized is 200 million.

[downsideup]

Have you read the latest SEC filing ?

http://www.sec.gov/Archives/edgar/data/1446727/000114420411004130/v208919_10kta.htm

[medimpact]

Does anyone know what the actual # of O/S for BLGW is? Some sites list 13 Mil ,others 120 Mil??? TIA