Bitech Technologies Corp (BTTC)

[tchauncy]

Below is a modified version of a post I put on the private board to address some “Fake News” being spread by a few ignorant members over there. It does address some of the concerns posted here.

With SPIN’s exceptional fundamental performance the last twelve months, if anyone is ignorant enough to believe that SPIN with only a bit over 20 million shares is only worth $0.16 or less than $3.2 million, then they for sure need to take a course in Fundamental Stock Evaluation of public companies. However, as I told Dr. D, in the past is a concern likely keeping speculators out is there is so little float at the lower levels. A few weeks ago, I was aware after the fact of a new investor who didn’t know better and aggressively bought about 70,000 shares running the stock to almost a double. Only to have it give back the move on an equal number of shares sold. Likely from some impatient or shaken investor who was scared out of the stock by some of the ignorant posts here (the private board). With his more than 100 Dr. D insider purchases and large patient investors who know Dr. D, sopping up most of the float over the years the tiny float at these prices is not surprising to see 30-40% spreads that a market maker selling a 100 shares could shake up.

I also told Dr. D, with all of the Fake news that has been posted, on the(other) chat board, I saw no reason for the Company to try to do anything for now exterior to boost the stock price other than just keep up the strong trailing fundamental performance. Basic fundamental research clearly shows the stock should be at least a two to three times multiple of the current price based on asset valuation alone, ignoring its 20+% current growth over the past year.

Instead of rehashing anything else from this (that) board, I will take some time to remind open-minded intelligent shareholders of what an excellent job Dr. Donovan and management has been quietly performing over the past year in not only turning around SPIN; even without financing, but also dramatically outperforming any trailing twelve months in more than half a decade. With three of the past four quarters both GAAP and Non-GAAP profitable and with the only loss quarter Q4 this had two extraordinary events. One- Hurricane Harvey causing attorneys to be more interested in filing flood suits against insurance companies and the US Army Corps of Engineers, than Personal Injury and Two, SPIN wrote off the last of the bad Florida cases totaling over $125,000.



Note the massive improvement over the same 12 months last year. Had SPIN not written off the last of the FL cases, the swing would have been almost a million dollars.

I do want to address one point from the CC.

Re the Comment that Doctors don't want to sell their paper was incorrect in that it was erroneously mentioned "out of context" on the CC. While it should not have been said at all since it is not relevant, What should have been said if necessary was,

"Attorneys tend to no want their Docs to sell their paper to ANYONE, why? Because Attorneys know that Docs would be a lot easier to "lowball" on settlement date than a corporate holder.”

What comes to mind for most attorneys hearing that their Doctors want to sell their “paper” is outside factoring companies like National Health Finance who will pay 30-35% for medical PI receivables to almost any Doc for their paper. Attorneys know that the factoring companies would likely be harder to deal with at settlement time since they have hard cash invested in the paper. This compared to the Doc who did the procedure having only time and a few hundred dollars in the procedure. I single out NHF in that I have in the past spoken with one of their VPs on the subject.

Now the factoring Companies like NHF do nothing but buy the paper. They provide no additional service and usually require a Doc to replace a case that fails. On several occasions, SPIN has been approached by such companies wanting to buy QVH units to provide to their Docs. Yes, copy SPIN’s business model knowing this will increase settlements and reduce time to settle. The major take-a-way you should get from this is if a professional “bill collector” like a factoring company feels safe buying paper at 35 percent, you know SPIN is “fishing in the right pond” at 20%.

As you know, SPIN business model gives Affiliates the QVH and uses its own marketing resources to introduce SPIN and the advantages of working with the Quad Video HALO to attract attorneys. All a SPIN Affiliate has to do is mind his own medical practice and when presented work with referral attorneys, he will make good easy, quick money. This compared to non-Affiliates who have to spend a lot of time hustling to round up market their own few cases. (Easy to see why an Affiliate would be willing to sell SPIN his receivables at the lower level since he gets much larger volume for much less work on his part).

Now aside from the Las Cruces Affiliate which has hoisted SPIN over the break-even medium, it is a fact that no new Affiliates have been added. Why, because for the tenth time here, SPIN cannot afford to solicit new Affiliates unless it has at least $250,000 cash to hold in reserve for a mediocre Affiliate and upwards of 350,000 for a potential super-star. The last thing SPIN can afford is to have a superstar all of a sudden doing 40 cases a month. Should that happen SPIN would run out of cash due to the requirement of paying he Affiliate the first week of the following month of the procedure, before first returns have even started. Historically, the first few cases start settling around the fourth month and half are usually in by the 13th month, so you can see how having to pay immediately for a lot of case can squeeze smaller amounts of cash. While I can’t address the issue here, having been the one who was involved in all but one past SPIN financings, I am confident a fair and equitable debt only funding as mention by Dr. D on the Q1 CC will happen. But let me leave this subject with a short explanation why it is not so easy to get a conventional financing for this unique business model.

In 2010 when Dodd-Frank banking legislation was passed, tight reigns were put on Federal banks regarding AR loans. Effectively, if you can’t put a finite expiration date and/or foreclose on the loan, a Federal Bank can’t make the loan without a guarantor. The recent partial unwinding of DF has not done away with this point. Most State and Local Banks, S&Ls and Credit Unions pattern this Federal Regulation. Two months ago to get a funding from a Corporate Lending source for this type of collateral would be extremely hard. While I am no fan of his, George Soros, with his
decision to fund large blocks of smaller Personal Injury loans, the door is starting to open.

However, speaking with SPIN’s CFO, hardly a week goes by that he is not being solicited by a “toxic” hedge fund offering millions of dollars on a toxic convert. Now IF anyone wants to believe the asinine story that Dr. D is only in this for himself rather than looking out for shareholders of which he is the largest, even a moron would have to believe in that case Dr.D would do one of these toxic deals in heartbeat.

Let me give you all a clue. You are all very lucky Dr.D is in this for shareholders and creating a legacy for his kids or with all the BS flack he is receiving here (other board), I wouldn’t blame him reaching a point to tell you all to go to hell and take on one of these cesspool funds. I know that if it were me, I probably would have done it a few months ago when all this BS started here (there).

I know I said I was not going to revisit this, but I am going to remind you one last time with a hypothetical. Lets say Dr. takes in through Northshore about $900 for each $4500 injection he bills. Out of that $900 he pays the pain specialist MD (not himself) who actually gives the shot around $250 per stick. He spends around $75 on the medication and needles He keeps an EMS and ambulance on locations while shots are being done - another $25 per injection. He has a staff of at least two in attendance during the procedures and then general overhead maybe a total of another $100. So when all is said and done, he might clear $400 per procedure out of which he has to do all the medical reports to give the Attorney. So you can see in the early days, or even lately when you see that SPIN owes Northshore cash, Dr. D is “cash out of pocket” around half of what SPIN owes him.

That’s what he gets. What does SPIN get? The balance of around 25% of whatever the case settles for after expenses up the full amount of $4500 meaning SPIN’s potential profit is $3600 or nine times higher than Dr. D.. Now a last reminder, if you were to believe the “fake news” that Dr. D’s only interest is in lining his own pockets, then please explain to me why he is letting SPIN take 80% of the billing leaving him to net maybe 10% when he could tell us all to FO and keep it all?

As said, while I am confident SPIN will ultimately get the financing it needs at its terms to grow at 100-150%+ annually, luckily in the meantime it can grow well organically; as show above, it is now growing around the 20% rate. No small number re microcap public companies and certainly stupid for a $0.16 stock still with only a $3.2 million Market Cap.

But with what Dr. D has come up with re the SPIN TBI Program, that 20% could bump to 30%+ even without additional financing since there is much less overhead in TBI than In giving shots. Now I know you all know TBI (concussion) is becoming very big in PI. The NIH speculates that one in every four auto accidents likely has some type of TBI attached. Just knowing this statistic alone would seem to almost require that every accident victim with whiplash or head injury must be tested. SPIN is already doing a rapidly increasing number of TBI case evaluations in both Midland-Odessa and Las Cruces and very soon will be doing them in Houston. FYI, Houston has 6,224 active members of the Texas Bar Association that claim they do PI law. A stunning number; yet according to an industry professional, very few locations doing the aggressive deep TBI testing SPIN provides. With no solicitation at all, SPIN has been contacted by first time attorneys with almost a dozen cases who heard SPIN is getting into this area. The beauty of doing the TBI testing, something most all attorneys know about, is the opportunity it gives SPIN to upsell these attorneys on SPIN Affiliates various injection procedures.

Another note, Dr. Cronk has stepped down from his COO position in that with his year up, he could not make the required move to Texas in the foreseeable future due to prior commitments to his personal projects. He felt it was not fair to keep taking a salary from the Company. But as a member of the BOD, he would still be fully available to work with the Company any way needed.

So that’s the current case. You can either believe the SEC filings and the logic of what I am telling you, or you can believe the Fake news. If you are an existing common sense holder/believer, I suggest you just keep limit orders to buy GTC. Unequivocally, SPIN IMO, is in its best position in the past six years to finally get momentum to new all-time highs over the next year or so. Irrespective of who owns the shares at that time.



Disclosure: As they know over on that board, I have been retained for a whopping $1,500 a month consulting fee to assist in creating marketing materials and corporate finance.