The Sunday Newsletter - BLEG
Let's recap last week's trading session.
There were much frustrated feelings in the past week, and most was based on the anticipated inspection on the manufacturing facility and as usual, some took it has a negative and prematurely exited out. Folks, nothing has changed with BLEG and I myself stand on the strengths of the company and not on daily unfortunate business cycles that is part of the ongoing operation. Snags happen in business, and this was nothing more than a hiccup and can easily be corrected. The usual remedy that always placates business cycles is to find a solution and correct the issue. This is being done as we speak. For people to sell on such a small deviate is really taking trading on emotion to a level that only frustrates one's own mind. Also, the daily trading volume is very low on this issue, and it only takes 10 -15% of the volume to take it down beyond reasonable levels before it gets correct and further fuels the downdraft that it takes other inexperienced traders with them and this is exactly what happened, it was all on anxiety, emotion and just plain nervousness that propelled one to sell. The company wasn't at fault as they explained quickly the issue of what happened and is working to correct it.
Let me say something about the manufacturing end of the company and what they are going through. The last 2 on Fridays tweet is the most difficult and is generally the last in line for acceptance for client approval and a contract signature. My family business is in manufacturing with the same hurdles as BLEG. We manufactured specialty ceramics that was based on the client's specifications. One of our clients is the automotive industry that required a 1"x1" ceramic chip that would go into a sheen diagnostic machine. This ceramic chip was opaque, and the constancy had to be so accurate that even a .00001% deviation from their specs. was inadequate and brought us back to the drawing board and our labs were so intensely frustrated that it took months to finally come to a successful conclusion that was accepted and finally the contract. The manufacturing end took enough time for quality and consistency and can we produce the 1/4 of a million with the same outcome as the original sample provided by the industry. Man, that was a real task to say the least. Many sleepless nights. Same went for reproductions in the antiquities from museums. This was our specialty, but just to mention what the company like BLEG has to go through to get the contract. The clients under these negotiations have the last say and the company if given the contract will be well deserved.
There are 3 important factors that you must understand when you take a position in a penny stock. The first is the share structure. What kills every penny company is the dilution of the share structure and it is indisputable to argue the fact that this one issue isn't the greatest negative to your ROI. The second is the business model. Does it have standing, and can it uphold the dominate interest with respect to rev and in a growth progression that is needed to continue through the business cycle for expansion and financing without the dilutive factor. The third is the management team. Does the company have the expertise in it respective field and does, this is important have the interest of shareholders concerns and updating said shareholders on every turn on the progression and missteps.
Al 3 of these attributes are in the company's favor. The company reduced the O/S shares by 2b and that is a big deal and shows that the company has the intent to build the business model from within and not on the backs of shareholders through dilutive nature. The business model is a concept that is revolutionary with respect to cannabis, which is and will gain much more popularity as more and more states recognize the viability for taxing and other reasons, but more importantly, the company is venturing in byproduct items that have appeal in broad sectors and with approval after clinical trials can only benefit the company as a whole with the utmost legitimacy. of FDA and other interested parties. Also, and this is important, the Vertical Integrated Structure. The company has in place every facet of the sequenced of the business model from the raw material through the manufacturing process onto the sales end into the public domain. This part allows the company absolute control from beginning to end without outsourcing that otherwise would create unnecessary bottlenecks and production delays. The last but not the least is the management team. So far, the company has shown transparency and the desire to keep shareholders in the loop. Also, the team has and is the original team before the company acquired their respective industries and this is very huge endeavor that allows the team a coordination that otherwise would be a stage of Imbo due to a training period that now doesn't exist, and you have harmony over the whole process.
Now we move forward into a growth period with an exciting company and a business model that is fairly new with respect to a business venture that is on the ground floor and the only way is up. I stand by my target of .01-.05 through mid-way 2025. The opportunities here is so great that after last week's downdraft, this issue is an absolute buying opportunity and feel you should take advantage and hold long. The next assessment will be June 2025. To give the company 1 year is certainly a reasonable objective for it to take their plan to the next level and that is a Nasdaq elevation, but that is down the road. Now it is in your court to fully embrace what a growth company feels like, and it is a buy and hold.
Remember, we have the May 15th quarter this week.
See you all on the trading floor tomorrow and Happy Mother's Day.
Have a good day
varok
Bullish
