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Today... Meanwhile, our exciting abrasive jetting business has reached a new milestone in its development, so we will be taking some time to evaluate options that could move it from a research project to a commercial business."
A Year ago "...BLAST has raised additional funds for operational activities and working capital needs as their proprietary abrasive fluid jetting rig nears completion and deployment...
"We continue on track to deploy our new abrasive jetting rig," said John O'Keefe Executive Vice President and Co-CEO.
They do have somebody doing some PR
Wish he was a full timer...
http://biz.yahoo.com/prnews/061130/dath040.html?.v=64
But, with 66M shares out, they are going to have to hire a truckload of fulltimers to paint some sizzle on this hope of many names.
If you want to see some real magic, take a look at the recent 10Q... a work of art. One can only come away saying..."How'd they do that?"
P2K, for starters, take a look at
http://www.encapgroup.com/slideshow/
http://www.natgas.us/solutions/lateral.php
Additionally, a brief look at the breadth of patent app's in this area confirms your take on the interest and difficulty in developing a workable lateral procedure. The first lateral was actually completed in the early 1900's using a technique similiar to the Blast procedure.
Bman - You are MOVING the market!!!
The Silence Strikes me as Strange.... raising me suspicions. The Co. was nearly exuberant in their detailed, and appreciated, descriptions of the testing process. And then 'the aquisition' and...... nada... while the market cap has fallen by HALF, not a word.
So the presumption must be that
1. 'The Acquisition' is NOT a good thing for existing shareholders
and
2. As suggested by the DOE engagement, the future for BLAST drilling is longer than shorter.
Yeah?
Seems as though something went far awry in the commercial field tests, something more than retooling or composite change. Something(s) that will require re-engineering equipment and perhaps strategy.
They must feel that DOE has resources (like the camera's) that may help solve "something" and that they will need some endorsements after the news of the recent failures if they are sucessful.
Let's hope that they have put all of their cards on the table with the RMOT folks...
Ricky, you are blessed to be so easily amused... unless one is wise, life can be full of so much else. Unfortunately, in this case, amusement doesn't equate to wisdom. Dilution has clealy taken place as a result of this 'deal'. As Garth wrote, many believe that the BESV risk / reward payoff lies in the confirmation and subsequent earnings potential of lateral drilling - well, Ricky, the 'ten-bagger' hurdle just got about 75% higher (there were 43M shares out last week and there will be, at least, on a fully diluted count some 74M shares)...
It appears as though there should be some benefit to shareholders as a result of this 'deal' and that may carry on into the future, but make no doubt, if you held 1M shares last week, you owned 1/43 of Blast... today you own 1/74.
The rainbow may be brighter, but your share of the pot just got a lot smaller.
Now we need to wait to see how those details you mentioned further impact the scenario. Whether patience is a good idea, as you suggest, is not absolutely clear to me.
Well, a 75% Dilution sure quietied things here...
Seems like the best news is that there is $5M breathing room and an on-doing revenue stream, yeah?
But, I am worried about my shadow in the noon-day sun... it just got a lot shorter with that haircut... haven't had time to even do back-of-envelope calculations, but it feels like the hurdle is pretty high for shareholders at this point?
Could someone explain this acquisition...
This is not a bash, but a serious inquiry. Someone a while back posted a financing scenario but I am unable to find it.
BESV is a company with a flat balance sheet, acknowledging that without equity sales or a cash infusion that they may not be able to continue as an on-going concern. They need to find some cash just to be able complete Rig#1.
Where are they going to find $50,000,000 to acquire these rigs? Perhaps they can arrange financing of 70% of the purchase, assuming they put up $15,000,000? Do you think they believe they can sell another 15 million shares of stock?
My concern is that they are taking their eyes off the prize and that all there efforts should be going into getting the "blaster" proven operational?
What to make of HUGE Nov $5 Put position -- for 1/2 million shares... or has this been hanging since before the "hold"?
No CC?? No mention of CC?? Guess no BS???
Rig Purchase... $50 Million cash is coming from ?????
In their latest Financial Report, Blast shared that "We are in an early stage of development and are rapidly depleting our cash resources, therefore we have determined that we will need to raise additional financing in the short term to continue in operation and fund future growth."
Now, that was just for continuing operations, not for a $50 Millon & a bunch of stock acquisition... form where is the $50M gonna appear? If you were an investment banking firm would you be knocking on their door? Or would you be running for the hills while referring Blast to the Slammers?
Odin, a couple of your assumptions perhaps require review.
* The outstanding shares will no longer be 43 Million, but probably in the 70 to 80 million range. This, of course, greatly dilutes the leverage (and some of the magic?) of whatever future gains might be generated from a successful abrasive jet.
* 45% net from these units seems pretty doubtful. Also, recall that the purchase debt cost will also reduce bottom line return
*The PR doesn't specify the two-year contract terms, so the anticipated realized utilization must be speculative, but it would surely be less than 5 x 100%?
Has anyone done a down & dirty model of
what revenues & income it will take to make this a viable investment?
Presently Blast has a negative net worth....how many shares will it take to finance a $50 million purchase?
There are currently > 42 million shares out... with that float a $1 share price will take $1.5 million bottom line for a high 30 PE. After acquisition dilution?
Not looking to bash Blast, but hoping to get some insightful responses & dialog.
Lotta volume took Blast down here. With no news from company (not surprising) about what went wrong and how long to repair, uncertainty will reign.
The problem is, no matter how great a medicine one develops, if one can't get a needle to work, the drug will be worthless.
Shakedown.... well (no pun), they sure are letting it all hang out there for the world to see... pimples and all. Sounds like it could be a while before we know how extensive and expensive the modifications?
So, no discourse here, eh?
I don't blame you for being upset if you were buying @ $1.50... but don't you believe that a rational evaluation of what is going on here is in order?
Stupid? Moron? Perhaps. Lying... please show me.
And, please tell me why the SP has cratered and the volume has dried up?
What do you think about the addition of Scott W. Johnson and Jeffrey R. Pendergraft to the board? Or, do you not care about that sort of stuff, either?
Personal attacks smack of obfuscation. The SP seems to agree that something is amiss, no? The recent 10K confirms a negative net worth.
Are you sure it is not you who is miscalculating?
Posing the question again... what gives one confidence in a company that discloses it has overvalued an asset it had preciously sold that results in a negative net worth? Do you feel that you are going to be told the good and the bad regarding the rig's real time performance?
Why no reply? Is this not a company with a negative net worth and wasn't that fact hidden from shareholders?
You impugn the timing of my posting the inqury, but that was the day the company apparently "fessed-up".
I'm not bashing, but asking. Tell me, please, why the question of corporate credibility is on the line here?
If that seemed like bashing to you, I apologize. The intent was to promote some enlightening dialogue regarding what appears to be an egregious and intentional deceit on the part of the company.
The stated purpose of this Board is "...to thoroughly analyze the company’s fundamentals."
A response to the description of these apparent shenanigans would be sincerely appreciated. BTW, Berg's investments greatly transcend and are superior to his stock holdings, in both dollars and security.
Why would you believe anything from this company? If they are willing to fudge that their balance sheet is upside down, why would you believe that you are hearing the truth about the status of the rig or the process or future dilution?
Nope, it a $3M+ hit to assets; ie, BESV is poorer by that amount. This is pretty nefarious stuff they had been doing... even after they sold the asset (to a former Blast CEO) for 1/3 the value that they continued to carry it on the books.
Before this they showed a net worth of $2M... and now....????