Blue Dolphin Energy Company (BDCO)

[RealDutch]

I have "news" for you guys.

I was thinking yesterday, it can't possibly be a coincidence. They have roughly the same amount of sales in inventory as their total profits.

Take a look at Q2. Only $4,000 in cash and $16.8M in inventory (at cost) which should be an easy $20M when sold.

They did the same thing in Q1. Only $106,000 in cash and $5.8M in inventory. Remember, gross profit in Q1 was $6.6M.

So what's going on here? It's a well planned strategy IMO. They must have known a debt letter is coming. And it did come, on Aug 2, from Veritex as I showed yesterday.

By having everything tied up in inventory, as of June 30, it will give them 3 more months to take care of the debt. 3 very crucial months when they can renegotiate some debt, probably even use some cash for the Ingleside facility.

So, we can assume that they sold all of that inventory after June 30, and that they are sitting on roughly $25M in cash (flow) by now, as we speak.

This is going to be interesting, and exciting. As they start spending this money in the coming weeks. Having all that debt, all that cash, and still some good negotiationg power. Because that is what it is all about IMO.

Veritex probably knows it too by now. Well, no point in trying to keep it a secret. They will get paid, as will the other debt holders.