bkmp read here,
From Varok's Newsletter,
Good Morning,
My update on Wednesday on the huge share volume for the last few weeks
was an effort by the holder or holders of CDs (convertible debentures)
having exercised the option.This in my opinion was an agreement from
the FCDH days before the symbol change to BKMP..My guess is that UBSS is
the seller for the holders.
It isn't actually the company diluting,but simply honoring the
agreement..This will also result in an increase of shares in the tune of around
another 2+billion added to the O/S..Of course this is my opinion,but
from the volume,my guess is that the O/S is probably somewhere around 5
billion when it's all said and done.I expect this to continue through
the month of March and going into April.
Now this actually isn't bad,but can be a good omen for us current BKMP
shareholders,even with the many 100s of millions of shares increasing
the O/S.
Allow me to explain..
See what happens with CD holders or lenders is that they invest monies
in a company and is referred to as "Debt Instruments" which in turn the
company gives the holder or lender to exchange the right to receive
principal and interest payments or the option to convert into stock of the
company at a predetermined date.There are many different types of CDs
in these types of investment vehicles,but to keep it simple,the company
gives an interest payment like a bank and the option to exchange for
stock in the same at a certain point in time and price.
The lender has the option to convert at a later date towards common
shares of the company at a certain executed price..Now these have many
variables to this,but the fine print has been established,and now,I
believe the options are being exercised.
Now here is where I feel this is good for us shareholders of BKMP.
See the CD has been converted or is being converted and the holder of
the note is exchanging and for or acquiring common shares..Yes we have a
certain amount of dilution,but the real reason is that the
holder/lender is exercising his option for shares rather than continue with
interest payments...Still confused??
What does this tells you?
People this holder or holders feels that the company is on the verge of
huge gains in share price in the coming weeks/months and is going to
acquire his shares set in the previous agreement rather than an interest
payment..They feel the reward is now in share price appreciation rather
than the interest payment.
This holder obviously sees some great potential in the value of the
company and that they are willing to forgo the secured interest payment
for huge gains in the share price.Now the problem with this comes at a
later date when the price starts to rise and they sell into the run where
usually CD holders benefit from share price appreciation..You get the
point..This is why we are all here and these folks aren't any
different..They obviously see the potential and they will maximize their return.
This is what I see and in my opinion the holder sees it as well.
I suggest all of you continue to do your DD and stay the course..We
still have tremendous potential and the business model is looking quite
attractive and is in demand more than ever.
The company has taken on 2 outside entities to move this
forward..Trajectory Sports is the venue for getting us the media outlets and OEB is
to build brandname..We are airing in Canada and every week we get more
cable companies (Another pr this morning)..In time,I believe shortly the
big news of airing in America will be here.
The Combatant Sports venue programming is hot and the
is coming to a cable near you..
Of course this is my opinion and I consider this a strong buy at these
levels.
Have a good day
Varok
AI
