I think that is probably correct... and it probably is an unexpected side effect of BLGW management having screwed up the share accounting exercise and having to correct the numbers.
A 5% bite of the current 135,625,000, would be 6,781,250... so they could add over 1.75 million more without having to report it... but, also wouldn't have a need to report it if they've decided to do that.
It looked to me like it had bottomed and was going to hold above $0.03 and then move higher again, at the point where they bought in. I don't think it was possible that the stock wasn't going to take a pretty nasty whack from having the news they did after the end of October. Someone did apparently make an effort trying to get it to stay stuck there, hanging on to the $0.03 line like a chin up bar, until the middle of November...
I'd just begun doing the DD here when the news on the screw up on the share count came out... so, having a bit more patience from that point made a lot of sense...
It looks to me like the market has already metered out the appropriate punishment and a well enough metered set of share price corrections, and the gnashing of teeth seems it is over now.
The errors made are clearly not inconsequential... but, in terms of the big picture... for those looking at it now, it really doesn't seem to have much potential to matter...
If BLGW is able to make the business work... I'll be glad enough for the chance to buy shares at some significantly lower prices than I'd probably have had available to me otherwise...
If they can't make the business work... well, it probably won't be the share count error that will be the difference maker.
Looks to me like they've got corrective action in hand, now. Still means a need exists to keep a close eye on things, and see that they continue along a path that has them improving their organizational and management situation relative to what they had...
I'm still thinking that the outcome of the play is going to depend a whole lot more on the successes the business is able to generate... or not... over the next year or two.
Not like Facebook hasn't had a few similar issues...
From here... I'd like to focus more on those issues. The market and potential... the things the company is doing, or thinking about doing, to better enable success. The business model isn't rocket science... which doesn't mean it will happen all by itself...
Might be worth calling to chat with the guys out in Colorado, to see what they're thinking... and it might be worth calling to chat with the company, too... as in this play, I don't really see that there is any other way to figure out much about what is happening as they seek to make progress in developing the market.
I'm not over my cold yet... but, I'm feeling better... so will try to get some of the more basic DD type stuff done here over the next week or two...
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