BAWC DD: Low float $.08 China SUPERSTOCK BAWC rose from $.07 to $.21 in a few days last week and has filled the gap at $.08. BAWC is a compelling investment opprtunity for the following reasons:
1) Tightly held 7.8 MM float 21 Million total shares
2) GREAT financials. $1 Million net working capital and no debt.
In the 4th quarter of 2004 BAWC generated a tiny profit before one-time, non-cash charges. Operating cashflow was $779,475. In Q1 2006, BAWC has a small GAAP loss but still operated near cash flow breakeven.
4) BAWC is focusing efforts on China growth through aquisitions and organic growth. BAWC China operations have been profitable on a stand alone basis: "Sino Trade has been successful in generating revenue and profit in the all four quarters of 2005." BAWC has identified an China aquisition target: http://biz.yahoo.com/prnews/060523/nytu103.html?.v=55
5) Low float stocks aquiring China companies have skyrocketed. All the following NASDAQ stocks went up over 500% after aquiring China companies with market caps exceeding $50 million EONC CHNR CTDC OLAB
6)BAWC is trading at a HUGE discount to other Junior China plays. If BAWC even reaches $10 MM market cap off China aquisition it will be a $.50 stock. Compare BAWC to other China OTC BB plays like GTEC, which has $17 MM market cap and has comparable sales to BAWC.
7) BAWC has a history of explosive price moves- it went from pennies to $.68 in a few months in 2004.
8)BAWC is raising its profile with the Investment community with its to the Investment community with its name change and focus on China operations.
BAWC reminds me of a low float China NASDAQ stock- EONC which went from $.60 to $3 in a few months on a China aquisition. BAWC has all the ingredients for an explosive price rise- low float, great financials, China sector.
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