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I'm ready for facts also and post quite a few, but with 6-12 months between press releases the facts are few and far between. If you have facts on what is going on at Baton Rouge, please share them so I don't have to speculate.
Also, the majority of my last post WERE FACTS. Just because I threw in commentary does not mean that I can't voice an opinion just like you don't have to read my opinion.
Anyway, good luck. Hopefully this is the news that will move this stock after all of these years.
Phillip
Drax Considers Developing Additional U.S. Pellet Capacity
http://www.power-eng.com/marketwired/2014/02/25/drax-considers-developing-additional-u-s-pellet-capacity.html
Phillip
My obeservations of the latest MD&A:
1) This MD&A was for the six months ended as of 12/31/13 and doesn't reflect anything that has happened since then.
2) It was written by Murray Swales according to the author of the PDF (for what it's worth).
3) Canaccord Genuity is acting as a sponsor for the listing to the TSX and for a private placement for $250,000. I speculate the private placement is the same entity that Montreux was going to use to raise capital.
4) This MD&A lists the Port of Natchitoches as completing the bond issuance and not the Port of Baton Rouge. This is a change. I suspect the bond issuance that BR did for Drax is limiting their ability to issue additional bonds for BMSPF.
5) The MD&A references two phases which is scaled back from the 3-4 phases they were discussing previously. This may be another reason the company is looking for other sites, but with 3.6 Mtonnes of fiber committed, it isn't clear how two phases at 1 Mtonnes is going to be built. More speculation: Multiple references to demand in Asia imply that they may be back to looking on the west coast to avoid shipping from the gulf.
6) New reference is made to shipping pellets to the Port of New Orleans and returning with fiber. This would imply that some form of pellet loading/offloading facility would be needed in New Orleans if one doesn't exist already. I'm a little concerned that the company's bouncing around all over the Mississippi River with some complex operation that's getting bloated. I'm also questioning the role Baton Rouge is playing in the business plan.
7)Interest - "At December 31, 2013 the Company was in default of repayment terms of those short-term loans.
8) No new shares were issued for the period.
Phillip
Some old news, some new news. They've confirmed the sponsorship from Canaccord Genuity, a private placement of $250,000, and then a $2.5 million placement. The $2.5 million question is what form of dilution will we see assuming all of the stars line up with the end user agreements? Will we have anything left? My only hope comes in the fact that the Directors hold the controlling interest in the company and wouldn't want to give that up.
Phillip
I was just updating the IBox with the news.
Phillip
Good luck Lurchy.
Phillip
I was thinking "Gaspers" earlier today also. I don't know what the suit was about or what the fued was over, but Mr. Golden Rooster's agenda seemed more personal than just the run of the mill bashing. If he feels that he's been wronged by Jim and got the short end of whatever settlement there was, I can understand the resentment. From personal experience though, posting on a blog or social media doesn't change anything but only helps blow off steam. I've found the need to do the same from time to time.
Phillip
For me it's been a black hole for 13 years. I've been burned by penny stocks also and largely got out of them except for this one. The volume this week in the form of single buys is definitely interesting.
Phillip
The only thing dumb on this forum are people who pop in here once in a blue moon to bash the company without any ability or evidence to corroborate their statements. You obviously have an agenda.
Phillip
What's with this volume? We go weeks with a few hundred shares being traded each day and we now have 100,000+ each day. It's like someone has a limit order for $0.015 and picking up shares as they come along.
Phillip
I was finally able to listen to the webinar. Andy did a great job. A few things I picked up from the presentation:
1) Andy couldn't mention the site where their plant was to be built, but showed the picture of the site at Baton Rouge.
2) Part of the presentation mentioned that they were currently looking at several sites, but then he said "when this site gets built" (referring to Baton Rouge) implying that Baton Rouge is the beginning and they are in the process of looking at other sites.
3) "When this site gets built" also implies it's a certainty in their mind.
4) The picture of the conveyor is crossing the canal is heading towards Drax's facility. Where else could it be going?
Phillip
I tried to listen at lunch, but it said it would email instructions in order to listen, but I never got instructions. Were you able to get it to work?
Phillip
From the assessor's office of West Baton Rouge, I'm measuring about 400 acres owned by the Port between North Line Road and the Gulf Intercoastal Waterway. Thus, it is possible that both companies could fit on Port land. I wish they updated their website.
Phillip
I would be happy to be wrong if it meant the project was still alive. With months between updates, all I can do is guess and try to put puzzle pieces together.
Phillip
It looks like I was wrong. BR Port Services,LLC has nothing to do with either Drax or BMSPF as stated in the article below. Unless the port had more property than they state on their website, it sounds like the project at the Port of Baton Rouge is completely dead.
http://theadvocate.com/home/8191601-125/br-port-approves-lease-option
Bummer. It doesn't even sound like they are close to being ready for construction, but still trying to find a site. I assume that this means Baton Rouge is no longer an option if wharf space became a limiting factor.
Phillip
Did you listen? How was it? I have to wait until the recording is available.
Phillip
It's nice to put a picture to a name that I've seen for so many years. Now we need to see Jim and George. It looks like the webinar is during my lunch hour, but unfortunately I already have lunch plans that day. Hopefully it will be archived so I can listen when I get home from work. I assume Andy won't be divulging any upcoming press releases, but maybe general progress on Baton Rouge.
Phillip
It has long been my theory that Drax and BMSPF have some form of partnership. All circumstantial evidence based on a number of facts such as Drax having a pellet transfer station right next to BMSPF's plant, Drax having three times the capacity at that station than they can produce at either of their pellet plants up river, BMSPF having to construct a conveyor system to get over the freeway to "somewhere" off their site, Drax strategically placing their two pellet plants far away from BMSPF's chipping plant on the Red River to tap into local fiber sourcing around each plant, etc.
Now, BMSPF formed a Limited Liability Corporporation (LLC) a while ago (commonly done in development) that had a 9 month option on the same property that went to the Port tonight for this new LLC for an option to lease. Drax also formed an LLC for the construction of their facility at the port called "Baton Rouge Transit, LLC" registered in Delaware.
The lease option that went to the Port's Board tonight for approval was on the same land that BMSPF had an option to lease on. This could be a BAAAD thing in the event that it was someone else that moved in and pushed BMSPF out of the picture. BUT, this new LLC, BR Port Services, was just created on 1/16/14 also in Delaware where Drax's LLC was formed (same MO) and using a name that doesn't have any referance to what is being built (also the same MO as Drax). What does this mean? I don't have the foggiest idea. :) But what it implies, if my theory is correct, is that this lease option isn't someone else pushing BMSPF off their turf and out of the picture, but someone involved with Drax (as my theory has been with BMSPF). The fact that the LLC was just formed at the last minute also leads me to believe that there has been interest in this property long before today and the only people in recent history that have had plans for that land (and going through the permit process) was BMSPF. Now for the glass half empty possibility . . . BMSPF lost their lease option under the LLC that they previously formed. BMSPF may not have been able to raise capital. BMSPF may not have been able to pull it together for one reason or another and flopped. Drax, has this transfer station with all of its excess capacity, could have stepped in and took up where BMSPF left off. It's a possibility. But if this was the case, why form a new LLC? Why not use their existing LLC? Could be because a partnership between Drax and BMSPF would necessitated a joint venture where each entity had some stake in the LLC that was now formed. It could also just be Drax trying to maintain their anonymous business practice until a disclosure is made and their previous LLC cover was blown. Could be both. Dunno.
Phillip
BR Port Services, LLC is registered in Deleware!!! The same state that Drax registered their Baton Rouge Transit, LLC!!!!
Phillip
Totally dead or totally alive under a new LLC? With 140 acres available at the Inland Rivers Marine Terminal (IRMT), "BR Port Services, LLC" is on the Port's agenda for a lease option for 123 acres. This presumably is the same acreage BMSPF previously had a lease option on. So the question is now whether BMSPF has a new LLC in an attempt to keep their movements a secret from inquiring minds like mine or is this another player pushing us out of our opportunity with the Port?. The fact that this LLC doesn't exist according to the Louisiana Secretary of State is very interesting. I think if the LLC was in another state, it would still need to be registered in Louisiana. I think Drax did this with their Baton Rouge Transit, LLC.
Looking at the IRMT map, my guess is that the partership between Drax and BMSPF has BMSPF receiving fiber via the shallow water access and then using a conveyor system to deliver finished pellets to Drax's facility that has deep water access. If the transport facility is approved and BMSPF was kicked out then I would think Drax has a problem with too much capacity and not enough supply.
Phillip
What is interesting is that the Port has another option to lease for 123 acres going to comittee. This LLC according to the Louisiana Secretary of State doesn't exist and the name doesn't imply that it is anything to do with biomass. That was Drax's MO when they created an LLC with a weird name.
Phillip
Accum/Dist is still high, but I'm going to sleep watching this stock. Does anyone have anything to report?
Phillip
I don't know if Jones Walker is still Legal Counsel to the Company, but their annual report is due next month with the Secretary of State.
A change has been made to the below referenced entity.
ENTITY NAME: BIOMASS POWER LOUISIANA L.L.C.
ENTITY NUMBER: 41070274K
CHANGE TYPE: Annual report is now due
DATE: 02/01/2014
To view the results of this change or to order a certified copy of any amendment click the following link.
http://www.sos.la.gov/BusinessServices/SearchForLouisianaBusinessFilings/Pages/CharterDetails.aspx?CharterID=1018815_S9E52
Drax projects provisionally top ranked
Drax projects provisionally top ranked
Drax Prioritized Over Eggborough for U.K. Government Aid
0.014 140,000
0.015 100,000
0.015 100,000
0.015 10,000
0.03 72,000
0.03 10,000
I haven't spoken to Jim, but it doesn't look like anything's on the Port agenda. The MD&A said that despite the lease option expiring, they are still committed to building in the "area". I don't know what that means since the bond financing I assume is tied to the Port.
Phillip
Drax surges on biomass subsidy news despite uncertain markets
Drax surges on biomass subsidy news despite uncertain markets
If everything in the business plan comes to fruition, the metrics certainly support at least $1.00 per share (assuming no dilution and no reverse splits). The majority of my portfolio consists of larger cap stocks for the purpose of growth until I'm ready to retire. This is the only speculative and aggressive position I have for the purpose of moving retirement up. :) Who knows maybe I'll volunteer my time in retirement toward expanding BMSPF. With all of the other companies out there, they certainly need to be agressive since fiber supplies could get locked up in a hurry.
Phillip
I'm averaged in at 0.015, but also sold 200,000 shares at 0.023 to buy more when the price went back down so I'm not too bad off considering the realized profit I've made. Still, I have way too much invested in this to buy any more at any price. With a wife and four kids I have a fiduciary responsibility not to speculate any further on this than I already have. News was expected in September, then October, and we're now almost in December. The MD&As and filings show they are still spending money and pursuing the project so I'm sure they have every intent to do so, but there is still risk involved . . . The Port of Baton Rouge, dilution to raise capital, materialization of take-off agreements, permitting, financing, etc. There are still too many unknowns. My comfort lies in the fact that the management has a vested interest and apparently funding this with their own cash. I admire that. Also knowing they hold the majority of shares, I'm inclined to believe that dilution wouldn't occur to the extent that they would lose controlling interest in the company. Also with every share they issue, they dilute their own position also.
One thing I also find intersting though that I don't think I mentioned. With Drax hosting a capital markets day not too long ago, you got to ask the question, "Why?". If their projects are already under construction they must have the means to pay for them already before executing construction contracts. Why is Drax looking for capital unless they have something huge on the horizon they haven't disclosed? Then again, does it have anything to do with BMSPF constructing "the largest pellet plant in the world"?
Phillip
The Accum/Dist chart is interesting also. I wish I was able to average down while we had lower prices, but I'm in as far as I'm comfortable with without solid news.
Phillip
Not much.
.0125 10,000
.0125 10,000
.025 10,000
Then again, do markets close early today?
Phillip
... Until 150k+ shares went for 0.009. Aren't many shares in the ask side below 0.0125, but doesn't mean someone else can't come along and sell lower. Fortunately I discovered that I do get Level II through my broker for pink sheets.
Phillip
I suspect visibility and credibility so that they can attract large investors and fund managers. Unfortunately, this also probably means dilution to our positions.
Phillip
Jim stays relatively quiet with what he says presumably to avoid any insider information being discussed. He may be more willing to discuss things over the phone, but I haven't gone that route figuring if he can't put it in writing, I probably shouldn't be asking verbally. Martha Stewart's imprisonment is still in my memory. :) Then again, the pellet processing vote is public information, but what I really want to know is if it has anything to do with BMSPF which I presume I will get the typical response, "That information will be released at the appropriate time." :)
Phillip
Any word on the pellet processing project on the Port agenda?
Phillip
The interesting tid bit is the fact that BMSPF is interested in the British sustainability standards. 'Must be that one of their potential clients is located there. Maybe the name starts with D and ends with RAX.
Also with Plum Creek being the primary supplier for the Drax plants, I would venture to bet that Weyerhaeuser is one of the fiber suppliers for BMSPF. They have a huge amount of holdings in the Red River basin.
Phillip
New MD&A has been filed on Sedar. Mostly old news, but some new updates.
http://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00028070
Phillip
...and Montreux Capital Corp willing to do a reverse merger and completely change its name to become a biomass company. These are the little things that keep my hopes up. Signs that insiders know something we don't. It will be interesting if the Port's Board meeting this Thursday will bring any news. Thursday (11/21) is my birthday so if Jim wanted to give me a great birthday present, it would be news before the end of the day. With the Port Board meeting at 5:00 PM though, I doubt there would be any news release that evening.
Phillip
Does anyone ever really buy or sell based on reading one anonymous sentence posted on a penny stock message board?