It's most interesting that the two small companies you mentioned specifically started years and years ago and remain private companies, the same way a new startup with the next great bread slicer and ample venture capital to get going could do.
BLU could use some help in marketing, though, since their phones had the infamous "back door to China" allowing user data to be communicated and resulting in them being banned.
Sorry, but the hypish way this company has approached business wreaks of a stock sell.
1. Starkweather promises no dilution in the Q & A, yet dilution occurs, no question about it.
2. "Hey we're going to CES! CES! Contracts and rich folks gonna flock to our table!." Hollow hype leading up, nothing coming out.
3. "Hey we're going to the MWC in Barcelona! Barcelona! Sexy place! Contracts and rich folks gonna flock to our table!" The chorus of hype is deafening. Then a couple days before "we'll be attending the MWC to learn." Then there's the amateurish "hey, I wanna meet with you" tweet from the stranger on the day of arrival. Serious companies don't tweet vague meeting requests, obviously meant to drive/hold PPS. Then nothing from this tourism, either.
4. "We're changing TA's because they have an internal policy gagging themselves and we want to be transparent." Hogwash. Later "the (new) TA remains gagged since we want single point control over the information (translation - share structure) communication."
5. "We're revitalizing two software companies and have exclusive rights to 140 apps!" Two companies and apps that have been dead for years, exclusive rights to software cadavers.
6. "We're now a holding company!" So what?
7. "We've signed a LOI to acquire a CLEC Holding company!" Wait, what? That company was just created out of thin air, what value is that and why didn't you just make your own?
8. "Here's our financials." nodummy meticulously and factually exposes the dilution and the conversion rules for the preferred B shares, as well as past business relationships between the CEO and some holders of those shares in other "typical" OTC "businesses." "The board of directors has decided not to do that anymore." Two months must have been plenty of time for additional conversions by friends and family.
Call it what you will, but your nice writeup shows that a company that is trying to sell phones can do so without diving into an ugly shell and hyping it up to sell stock, in fact it would probably take less effort if the venture capital is what it is purported to be. Too many hollow and false promises from this company, but such is the OTC.
