Excellent job on your DD. Your DD on the BOD and other things is much appreciated.
The land deal, shares, DTC issues, and others are what engineers call noise. The engineering goal is to reduce the signal to noise ratio to a point where the signal is useful and the noise is insignificant. As a previous poster said, and I concur with, is that I have not seen a single issue raised about BI, Sean, or the BODs that concerns me in the least. The signal value is increasing and the noise is getting less important.
Everything the new BI has done is to reduce the noise. The monetary value of the noise, even if they did not collect a single dollar on bad debts, is far outweighed by the signal value of a slate clean enough to raise necessary funding to advance the "continuing operations" of BI. Writing off losses from "discontinued operations" happens all the time by companies due to failed products and management mistakes. Management dispenses with the old and moves forward. Bad news never gets better with time. Good management dispenses with bad news as quickly as possible, takes corrective action and moves on. Sean was wisely proactive in making provisions for other unknowns. Very smart move on his part.
Analyst's recommendations, investment bankers, and stock brokers always look at the forward direction of the company, not what happened in the past. BI's first profitable quarter will be compared with the comparable quarter from the previous year. Seasoned investors like to see on-going improvement to justify additional investment. I liked what Jenee said about Sean taking a very conservative approach. This way the potential bad news is over with. Looking forward, as business picks up, the written off items can only improve the balance sheet of BI but cannot hurt it.
I also greatly appreciate the elimination of speculative PR releases. That's what got myself and family members underwater to begin with. I can only hope that as BI and BIW make future sales that they report the sales volume and profits but not the customer's identity. I am curious and would like to know but have no valid reason nor right to know this information. I certainly would not be calling a BI customer to verify delivery. That is between the customer and BI. I understand my entitlement to information is limited to content required for public reports and releases.
Slick, keep up the good work.
Thanks again.
Flatcat
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