Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Your understanding of BCCI volume needs to be corrected:

More sold shares, means more investments coming in for BCCI to allocate.

The volume is not coming from shares sold by the company, but rather they are sold from one existing shareholder to another.

So, when you buy shares, BCCI receives no cash. so no 'investments to allocate.'

But for those who believe in P+D, there could be significant cash for BCCI insiders.

The company has frequently issued shares in lieu of paying for expenses with non-existent cash; so in a sense, that issuance is like cash. The problem is that the amount of shares so issued, over $7M, dwarfs the revenue of the company -- indicating the weakness of the business model and/or bad decision making (5M shares, $500K worth, for ice cream distribution for example).

Worse yet, after initially recording as an expense (correct) at .001 per share (wrong, should have been market value at time of issuance), it has been moved to the balance sheet (Q2 13 report) as an 'Unidentified Assets,' at market value rather than put through the income statement as an expense. Thus, shareholder equity in the company is significantly overstated, which will be made evident in the unlikely event that audited financials are ever produced.

One could make the torturous argument that the annual P&D does benefit the company, as it provides some assurance to those who receive its shares in return for services rendered; however, I suspect that receivers of shares request significant amounts in order to protect against market fluctuations.

Put another way -- BCCI should sue Caliph diaries if they think they got $500K worth of ice cream distribution work.