Blue Sphere Corp (BLSP)

[Hystart]

War, I would guess you are right on this one. The industry is not kind to these kinds of companies. Their lack of internal skill sets is consistent with others who plowed the same ground around AD, particularly in the US. They are developers, not real AD design and Ops guys. They have been good developing a story, but as their history reveals, they have been poor at execution and fiscal acumen.

When you outsource everything you do except the marketing, it becomes very difficult to return any of the gross revenue to the bottom line. All those companies that are paid to do the real work make the real money, leaving BSLP with, well take a look at their financial situation. They have negative cash flow.

The industry has changed a lot in the last 15 years, now that a number of AD sites have been built. MONEY is much smarter now and it is hard for companies like BLSP to gain access to investors, now that they have a track record. And that track record is not very good.

They like so many other "AD Developers" talked a very good game. They hit all the Green Highlights like making energy from garbage. What the failed to mention, and possibly because they listened to less than honest technology providers, is that making energy from garbage is a tough way to make money. It is particularly hard with the "Wet AD" technology BLSP have attempted to use. Europe has been semi successful in making power with wet AD, but they use virgin crops as the fuel source. That is the big argument, feed people and animals or make power with AD.

So as one who has been in the business of using AD for many years, I cannot see a path forward for companies like BLSP. There have been so many before them that failed. And the failure mode is identical to BLSP. The real difference with the BSLP model is that they ate PUBLIC monies as well as private monies. Private monies dried up after all the failures, and it looks as if the PUBLIC money has finally seen the light.

No one in the industry sees BLSP as a Competitor, rather the industry sees them as a black sheep, giving AD a very BAD rap. AD works, but not via the BLSP model.