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Could be the math. Article says $57 million for 50000 tons per year for five years. Could be $57 million over all 5 years. Need to look at the specifics.
As far as bio char I'm sure it works, but how is it any different than wood ash? As you say they give it away so I don't see any competitive advantage. Potassium is potassium no matter what the source.
Phillip
I briefly looked at it last night and remembered their biochar product is what I looked at previously. I didn't recall their torrefied pellet product line which is probably why I stopped looking at them. With respect to differences between the two companies, I don't know for sure without looking into VGPR a little more, but these are the the red flags I would probably look into (VGPR vs BMSPF):
1) 1.35 billion shares outstanding vs. 600 million
2) Both have great press releases, but BMSPF information is verifiable via public records (VGPR may be as well, but I haven't tried yet).
3) Biochar product concerns me. It's marketed as a soil amendment, but I don't understand how it is any differnt than potash which has been used as a nutrient for ages. No doubt it works, but of the three types of nutrients (Nitrogen, Phosphorous, and Potassium (NPK)), burned wood/ash/biochar provides the "K" which is good for fruit production. Also raises pH in the soil which could be detrimental to some crops. I just don't see the competitive advantage over potash.
4) Torrefied pellets is interesting. They say they have contracts for production which sounds promising. My understanding is BMSPF has given up on this, so if VGPR can make it profitable, they may just have the competitive advantage in this arena.
5) Reverse splits have been mentioned as possibilities for both companies. VGPR says they canceled their reverse split. BMSPF went onto another finance plan that didn't involve a reverse split, but hasn't ruled it out either.
6) Both mention moving off the pink sheets. With VGPR's 1.35 billion shares, I see it hard to meet minimum share price involved with other exchanges.
7) VGPR talks about entering the agricultural amendments marketed to cannibis growers in Colorado. I can't help but chuckle and question the business case for marketing to pot growers over any other ag product. Just seems silly, but I'm a social conservative who has never smoked pot so what do I know. :)
8) Name recognition? I'd say both are relatively unknown, but I've seen more in Biomass Magazine about BMSPF than VGPR. Googling it just now, it looks like they are in Biomass Magazine in several articles. VGPR on the other hand has a more active board here on ihub.
9) Proposed projects - BMSPF is currently looking at 3 million tons/yr of product after 2 phases. VGPR has 50,000 tons announced in one of their latest press releases, but I don't knwo if they have other contracts I'm not seeing off hand. Valuation wise they say this 50,000 tons will bring in $57 million/yr. Without doing the math, this looks way too high offhand and something I would question.
Phillip
Ed,
I don't have a premium account so I can't respond to your message so I'll do it here. As far as vgpr, I dunno. I had briefly looked at vgpr, but got the impression they were in a different market segment. I'll look again, but I'm largely out of holding penny stocks except bmspf so I could be wrong.
Phillip
If Russian natural gas supplies are shut off in the Ukraine, has anyone ever thought about the impact that might have on power producers to restart old coal fired plants using biomass? At very least this might be a wakeup call to diversify away from natural gas.
Phillip
It's not unusual. Yesterday only had 25,000 shares. Today, zero so far and ask prices seem lower. I've long believed that we won't see substantial volume until a large contract is announced with a major power producer. Preferably the press release would come from the producer and not from BMSPF. This would get people looking at what is otherwise a relatively unknown company.
Phillip
News Out in Biomass Magazine:
Biomass Power Louisiana signs engagement letter for pellet plant
Phillip
A little meat and potatoes today. $0.04 and it was more than the 100 share trades we typically see with this type price extreme.
Phillip
Financing News Out:
https://finance.yahoo.com/news/biomass-secure-power-inc-subsidiary-190000293.html
The good news I see in this is no new equity financing by issuing new shares. This makes me happy. Now we need to see if we have enough interest from bond purchasers.
Phillip
Yep. A mad exodus from the stock of 350 shares. I think I'll dump another 650 shares just to make it an even number. We're doomed!! :)
Phillip
Thanks. I like facts but I've also been known to speculate. :)
Phillip
Yep. I know of buy orders higher than the ones that were executed yesterday that didn't get filled, but the lower amounts did. Still trying to figure out these 100 share purchases before the closing bell. It's like they are trying to manipulate the charts.
Phillip
Highland Pellets to build 500,000 ton-per-year plant in Arkansas
http://biomassmagazine.com/articles/10831/highland-pellets-to-build-500-000-ton-per-year-plant-in-arkansas
Phillip
No problem. Could be unrelated.
Phillip
Building boom at International Paper just upstream of BMSPF. Locks, training room, mill, storage building, etc.
BMSPF was going to build a training room in their first phase. Lots of training for a small town.
Phillip
Any rational person should care about losing money whether it is a little or a lot. Any rational person shouldn't be taking advice on these forums without doing their own research first. I would say your friends are either not rational or they know something the rest of us don't. Perhaps Mr. Golden Rooster knows more than the rest of us and is warning us based on his experiences. I'm not sure I trust you, Mr. Golden Rooster, or Jim Carroll because I believe all have their own agendas and they aren't my family's financial welfare (nor do I expect you to have my interests as an agenda item). I do trust the Port of Natchitoches, public records in the State of Louisiana, and my own good judgement.
I wouldn't say "some" around here are overly skeptical, but anyone who has been invested in this stock for over 10 years and heard about one project after another never coming to fruition should be a skeptic. Anyone who isn't should have their brain checked. Is this the big one that comes true? I certainly hope so or I would have sold some time ago. All indicators are pointing in that direction, but I will remain "optimistically skeptical" (yes an oxymoron), until I know without a doubt that financing activities aren't going to cause dilution in my position.
Phillip
Large shareholder is a subjective term. I have more than 1 share and less than 100 million. Losing either amount wouldn't make my day.
Phillip
Port of Natchitoches doesn't have agendas or minutes online. You have to ask which is why I was reprimanded by Jim. Ports of Baton Rouge and New Orleans are online. Minutes won't be ready until they are approved at the next meeting which is typical for most agencies.
Phillip
No, I'm an Civil Engineer in the water utility business. Biomass is just a hobby since I started following this stock. It's my riskiest investment which led me to really investigate the industry more than my large cap investments. I don't spend much time looking at Archer Daniels Midland with the comfort that they won't go belly up overnight with a single press release. Then again, there's some Washington Mutual shareholders that probably thought the same thing at one time. :)
Phillip
Thanks for the update.
Time will tell if this week was a buying opportunity. I suspect the next couple of weeks will have us either kicking ourselves for not buying more or kicking ourselves for not selling when we could.
Phillip
Port of Natchitoches met this morning. Anyone hear what the outcome was for the approval of the lease?
Phillip
Thanks. I actually subscribe to Biomass Magazine and have corresponded with some of their reporters. Drax is smart to lock up as much of the fiber supply as possible. Getting in early helps with securing fiber supplies that are relatively close to ports and transportation networks. The further away from your supply the costlier it is to transport.
Phillip
Perhaps. My understanding is Jim didn't get along with Calvin Kantonen or the Gaspers so maybe there was a reason. What I do know from public records though is that the company is on the Port's agenda as was reported in the last press release so that much is true. Whether staff's recommendation is to approve the lease and whether the Company will sign it is another story. The recommendation should be public record in the staff report for anyone to make a public information request on. The Port will have so many days to respond though so by then the Board meeting will be over.
The second part of the story is whether existing shareholders will be left with the short end of the stick with whatever financing arrangements are being made. With everyone having their own agendas, who knows? I definitely have my concerns, but I can't see anyone going through the motions to make this happen if they didn't think it would.
Phillip
This isn't the first time Jim has gone off on me for researching the stock, but the thing that gets to me is I don't look for anything that isn't public information anyway. He made the statement that I "reveal" things that prevent them from going public with the information. I'm not sure what he is talking about, but the only information I have is already public. Port meetings are public, press releases are public, SEC filings are public, Port agreements are public, etc. Things may be different in Canada, but if a presentation is made in the US to a public agency, it's a public document. He may not understand that, but if that is the case the company should retain legal counsel here in the US to advise them about doing business with governmental agencies that are required by law to be transparent.
The other item that gets under my skin is being falsely accused of making "idiotic phone calls" when I have never called anyone anywhere. I have emailed and asked for agendas, minutes, and made public information requests, but to be falsely accused of something I didn't do makes the company look much more foolish than anything I have ever done.
Phillip
The Montreux deal went away and they are now going with Canaccord Genuity who is helping to get them listed and a private placement.
Phillip
Got a tongue lashing from Jim this morning for phone calls I never made . . .
I don't know that my opinion is worth much. I've had a long standing belief that Drax was working with BMSPF based on a bunch of circumstantial evidence such as their proximity to the Drax facility at the Port of Baton Rouge, the locating of Drax Pellet Plants being apparently "planned" at a distance far enough away that it wouldn't interfere with BMSPF fiber supplies, Louisiana Economic Development approaching both Drax and BMSPF in the same manner, etc. With that being said, my circumstantial evidence has been wrong in the past with other theories I've formed.
As far as this latest news about Drax losing their subsidy appeal, I guess there's a couple of things that I tend to read between the lines. The first one being that this more lucrative subsidy will eventually go into effect, but what was being appealed was an "early release" of the subsidy for projects that would be held up waiting for red tape to be cut. My take on it is that Drax failed to demonstrate their projects would be held up and things will continue to move forward for a time when the formal subsidy is put into effect. To me this isn't a deal killer, but another potential delay.
On the other hand, the Drax argument was that the "early release" wasn't going to delay their projects, but would impact their ability to secure fiber. Presuming there is a takeoff agreement with BMSPF and it is actually BMSPF that is securing the fiber, one could argue that this directly impacts BMSPF. Deal killer, delay, or none of the above? Dunno.
Anyway, lots of assumptions and dots being connected (or misconnected). I think it will boil down to what happens later this month to see if things proceed as planned at the Port of Natchitoches. If leases are approved and signed. That would be a good sign.
Phillip
Drax shares drop after Government wins subsidy appeal
Bad news for Drax today:
http://www.telegraph.co.uk/finance/newsbysector/energy/11018259/Drax-shares-drop-after-Government-wins-subsidy-appeal.html
If BMSPF had a takeoff agreement with Drax, I wonder it this impacts them. The article said Drax will proceed with the conversion, but may not be able to secure all of the biomass they need.
Phillip
Yes I mentioned that in a later post. International paper also has some proposed construction on their property. Curious if it's related.
Phillip
August 18th will be our D-day for the Port to take action. As the Company has mentioned in their press release, it sounds like they will be prepared to sign about a week later.
Phillip
'Don't know if it's a good reason. 'Just trying to make sense of the senseless.
Phillip
I've never understood it. There's often a few thousand shares in the morning and then again right before the bell at the end of the day. I've wondered if it was some insider trying to satisfy some listing requirement that the stock had to be actively traded for so many days before moving to the TSX. Other times, I think it's just and end of day paint job to show the stock closing price higher than it was at the beginning of the day.
Phillip
I'm sure all are pieces of the puzzle, but where they fit or if they will be put together is the million dollar question.
Phillip
I just read another article saying that site was sold by Weyerhaeuser to International Paper. Weyerhaeuser timber operations is located in Natchitoches just to the south.
5810 HIGHWAY 1 BYPASS
NATCHITOCHES, LA 71457-2623
Phillip
I just discovered Weyerhaeuser is located in Campti, LA where the proposed pellet plant is going. Could be a good side investement since they are one of the largest timber/fiber suppliers. I imagine they would be a safer investement since they would stand to benefit no matter who built pellet plants. Plum Creek is the other.
Phillip
Weyerhaeuser CO
4537 Highway 480
Campti, LA 71411
Phone: (318) 476-3392
Web: Weyerhaeuser.com
For what it is worth,if the lease is approved, I have a penny stock endeavor that can be nailed to a specific location,and the progress of a proposed development can be independently verified.
This is one of the reasons why this is the only penny stock I own and spend so much time on. I've lost plenty of money over the years and look at penny stocks as a joke where people pump and dump companies with zero potential and zero assets. This one may not have assets, but it has verifiable potential through public records. A scam doesn't fly people to another country to attend Board meetings and a scam doesn't have any problems releasing "privilaged information" to unsuspecting investors. The simple fact of the matter is we are small fish. The big fish are the inside officers of the company that own most of the stock. The other big fish is going to be the investor(s) that sets down a lot of money for construction. What we end up losing in the form of dilution isn't known, but the only comfort is that the insiders will have their positions diluted also unless they issue themselves new shares in exchange for back pay. This is a potential snag, but if the company is serious about raising capital, they can't just print new shares and expect serious investors to be willing to have their investment diluted. The bond however would take on debt without dilution, but I suspect that the bond can't be used for operating costs and can only be used for construction. Just a theory, but I suspect operating costs will be covered through the equity market.
Phillip
Regardless of motives, I appreciate being notified of new developments including the Form D. It's not a huge amount and isn't going toward paying any of the existing directors, but is dilution. Apparently to an entity that is already invested in the company. Good or bad? Dunno. Could be part of the financing agreement to the private party. Could be for pizza and cheese wiz. Some day we'll find out.
Phillip
It may, it may not. The only evidence I can count on is what I get from third parties without any vested interest in pumping or dumping this stock (or any other stocks for that matter).
Phillip