Baron Capital Enterprise Inc (BCAP)

[mdimport]

Stocks price forward not back.

$BCAP booked at least a $100k asset from the $TGGI R/M in the form of a shell. That doesn't assume any revenue from the $RIGH R/M, that there was cash paid by $TGGI in addition to the shell, or interest accrued on the convertible debt and notes. I don't know what was logged as revenue in 4Q2011 and what will be logged in 1Q2012, but there is definitely revenue being generated. Add to that the revenue from the initial customers from the TA at the end of February and March and $BCAP progresses.

With respect to the O/S reduction, it was stated as being a swap of Common for Preferred, not a share buyback. I would assume the upside for Preferred is that it has some combination of the following: generates interest, is anti-dilutive and has some kind of lock-in period (say 2-5 years) with a premium at the end of the lock-in. As $BCAP grows there would likely be a buyback of O/S prior to the Preferred lock-in period ending. That would avoid a collapse in price at some future date.

In any event, we'll hopefully have the opportunity to learn more about the Common to Preferred when some shareholders meet with Matt next week.