Good day to all,
As you know I've been, and still am, a staunch supporter of BBDA since the moment I invested. I bought in at triple zeros and so have nothing to lose when it comes to money, and nothing to gain by what I'm about to post. I've been listening to the cheerleaders speculate about the price per share rising to 3 or 4 cents, and I've heard the skeptics predict triple zeros again, but I think we'll be somewhere in the middle for a while. But regardles, the price per share just cannot be predicted; only one thing can be predicted, and that is the price of this stock will remain unpredictable and unstable at this point.
I'm writing this post to give a word of caution/information to investors who are entering into BBDA for the first time, or are buying a huge number of shares at the current price per share. I'm as adamant a supporter of this company as any, but I would suggest approaching this stock with great sobriety at the current price per share (above .01) due to the following:
1. The float on this stock is about 2.3 billion shares. The sheer number of outstanding shares, and the sheer number of short-term investors still hanging around this stock, is going to make it hard for this stock to go anywhere significant in the near future absent major PR's. Too many people dump on bad news and sell quickly on good news. If you are able to free up money for the next 2-3 years, then this stock is probably a good investment; if not, you might be spinning your wheels here.
2. Koma Unwind is selling in Walmart, but it is not "flying off the shelves" at Walmart. Don't take my word for it; call each and every Walmart in South Carolina for yourselves. I've called about 45 of them and the consistent message I received was that it is selling, but not very well. When I asked the customer service reps and grocery clerks who stock it why it is not selling all that well, many of them said the price is too high; many others said it is because of lack of marketing. Only 3 stores told me Koma Unwind is selling well in their store. As per message from Brian Weber, the Walmarts are doing a "reset" of Koma Unwind (meaning a "reload") before they run the commercials. This suggests that Walmart sees potential with selling Koma Unwind, but that they also realize it needs some marketing help (i.e. commercials!). This is strictly my opinion, but it seems to me that the jury is still out. I hope Koma starts selling like hotcakes in Walmart, but at this point everyone should exercise some caution...it's not currently selling like hotcakes according to the customer service representatives and grocery clerks I talked to on the phone. Again, call them yourselves; call at least 30 of them to get a good sampling. Whatever you do with the stock, be careful.
3. Nearly the entire near future of BBDA hangs on Walmart; if Walmart fails then this stock price is gonna crash. It may rise again in the future, but it would stay crashed for quite a while until a new major distributor was landed. I would be remiss to speculate about Koma Unwind's future success in Walmart, but one thing we do know: if Walmart does not continue to carry Koma Unwind in South Carolina, this stock will plummet. If,however, Koma Unwind continues to be carried, and starts to "fly off the shelves" in Walmarts in SC and other states, the price per share will react accordingly. Again, for those unaware about the permanent state of Koma Unwind in Walmart, the jury is still out. I'm not telling you to invest or uninvest, but only telling you to invest accordingly.
4. If the stock price was trading at the company's current value (let's estimate high; say the current value is 4 million), then if you do the math, the current price per share value is about .0018 (4 million dollars divided by 2.3 billion shares) The current stock price, then, is built upon some pretty significant speculation. THis is not entirely unusual, but is something you should be aware of. FYI, the speculation which the current stock price is built on is the following:
a. That Koma Unwind will remain in the South Carolina Walmarts long-term, guaranteed.
b. That Koma Unwind will expand into Walmarts in other states.
c. That a share buyback will take place later on this year or early next year.
d. That a deal "10 times bigger" than Walmart will happen in Europe and Asia.
These speculations may one day become reality, but please be informed that right now they are not a guaranteed reality, and are at most only a promise made but not yet fulfilled.
5. The financials of BBDA are unaudited, and the CEO, Brian Weber, for whom I have much respect, has stated they will not be audited until early next year (2013). Again, I'm not bashing BBDA, Koma, or Brian Weber, for I highly support all of them, and I'm on my 4th case of Koma Unwind (I love the stuff!). I AM telling you this so you can make a sober-minded decision about investing in this company right now at the current price (above .01).
These may all happen, but it has not yet been proven these will happen. Again, this is purely for your information so you can make a wise investment choice.
Again, you'll be hard pressed to find a more supportive investor of this stock than myself. I've made well over $100,000 on the stock so far. But as I look at the current price per share and the precarious nature of Koma Unwind's future in Walmart and other places, I feel compelled to inform those who want to invest at the current price per share to be cautious. If the current price per share was between .005 and .008 I wouldn't say anything because I think that would be a more sober-minded trading price given the unsureties hanging in the air at this point.
As always, GLTA. I don't want to see investors lose their hats. We'll know a lot more in a few months; right now we don't know much at all. THis stock, then, is very risky; very little public transparency. And if you like a big risk, then ignore this entire post! Happy trading all...and good night.
