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TASHI

09/17/08 8:19 AM

#20951 RE: pontalba #20950

Absurd, Ponti? Nothing is absurd until all is revealed.

How do you know "this company has no access to capital" and are unable to fund operations?

It's simple, you don't know.

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nightwish

09/17/08 9:05 AM

#20952 RE: pontalba #20950

pontalba, absurd is your way of thinking imho

"If a plant can be operated profitably, why would it be available for rent, and since this company has no access to capital exactly how would they fund front end and operating costs."

1.)

I could also ask why a plant should be for sale if it is profitable. I think renting is always better than selling because sold things are gone forever. So if some company has actually some financial problems it should be the better option for the company to rent their plant. If a company sells a plant the company has no chance to come back into business because the plant is gone.

2.)

If you want to drive a Ferrari and big money is hardly to get from banks: what is more likely? To buy the Ferrari or to rent the Ferrari? Same thing here: if you need a plant to produce and you don´t have enough money to buy a plant you will have to rent one first. Even better doing business with a rented plant than having no plant and no business ...

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MetalHead

09/17/08 10:16 AM

#20956 RE: pontalba #20950

Another Day for the Dilution Machine here at BLDV. Looks like it is already fired up ready to rock and roll. Can BLDV manufacture dilution machines? seems like a good business
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chgobullsfan

09/17/08 10:41 AM

#20960 RE: pontalba #20950

You missed the point. It is possible BLDV is renting a plant from themselves. See my original post.


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Nightwish,

BLDV renting a plant makes sense.

I own a business. I own the office where the business is located. My business is a corporation, my building is a LLP (Limited Liability Partnership). My business pays the LLP rent, in turn, the LLP pays the mortgage. Research my corporation, you will NOT find any Real Estate owned. But I no doubt own the building.

Having 2 seperate enties makes complete sense.

It is possible BLDV is renting. I have no idea if this is the case for Moaning and BLDV, but it is possible and it does make sense.

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It is possible that BLDV is renting a plant from a different entity, an entity created and owned by Moaning and its only assest is the plant. BLDV pays rent to the Real Estate Entity.
Again, I have no idea if this is true in BLDV's case, but it is possible.