Replies to post #3868 on Bitech Technologies Corp (BTTC)

[Rawnoc]

Everything you said sounds logical. If SPIN can prove themselves in the future, then it goes to multiple dollars. Their credibillity is shot. They need results.

I did read the pacer long version of the case. It read worse than a soap opera, complete with mafia and murder allegations. If I suddenly disappear from IHUB after this post, then perhaps the allegations were real. They sounded outlandish to me.

[FrankLind]

It was settled in March 2012.
Didn't the last PR mentioned accelerating cash collections?

[tchauncy]

shrick9- You are 100% correct in everything you say in this post.

To an extent.

Yes, there were "failed promises and missed expectations" which were made in late 2011. All before the two events you speak of in this post. The Allstate lawsuit and the Change in the Florida law. Had they not happened, it is likely business would have continued at the rapid prior pace. But at that time (or for that matter, not at any time), neither had anything to do with SPIN directly. In hindsight, though, both did cause considerable temporary "collateral damage" which was not handled well re. communications later in 2012, once the collateral damage was becoming apparent.

IMO, the Company had two opportunities to address these temporary problems on Conference Calls, but didn't. Likely that was possibly a mistake. But due to the ongoing nature at the time of the Allstate suit and since it didn't include SPIN directly, I can guess that defendants counsel advised against. And since settled, both sides likely have a non-disclosure clause in the settlement so it is not likely we will hear about it in the future. But in my opinion, there was no reason not to fully address the Florida law changes.

The Allstate Suit

Was the negative affect this subsequently had on the company'a performance held back from shareholders due to innocent ignorance of the damage potential, or purposeful obfuscation?

I would like to think it was the former; proven by the fact that just one week before the Allstate lawsuit was filed on Feb. 14, 2012, Dr. Donovan swapped the $1.02 million in accrued receivables owed Northshore into 560,000 shares of SPIN stock at $1.82. By any measure, a pretty dumb move for any CEO who felt the lawsuit was going to affect his Company. OK, so some person who has never been involved in lawsuits might try to say that Dr. D likely had no idea the suit was going to be filed when he made the decision to create an instant $350,000 tax liability for himself by buying these shares. Rest assured, no civil lawsuit like this is filed without defendants knowledge of the possible case months in advance. (Chance to settle etc.)

For the newbies here, lets be clear. The members of this board were made aware of this suit a couple of weeks later on March 1 with this post:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72762629

Two weeks later the stock was still trading as high as $1.93. Some might say the Company had an "obligation" to publicly address the suit. In hindsight, that might be debatable, but as I mentioned above, since the suit did not involve SPIN, there was no legal requirement to do so. Allstate has a long time reputation of filing frivolous lawsuits against Doctors who are strong patient advocates as can be seen by this article

Allstate must pay $21 million for defaming doctor
March 22, 2011

Michigan auto insurance attorney warns car accident victims about insurance companies targeting doctors that they don’t like

Claims adjusters regularly discourage injured Michigan car accident victims from treating with certain doctors that claims adjusters don’t like. They can’t legally do this, of course, but it still happens every day. Some doctors are too much of an “advocate” for injury victims, and actually have the audacity to stand up for their patients. So many insurance companies and claims adjusters steer people to doctors they know are more conservative (read: send hurt people back to work faster)...

http://www.michiganautolaw.com/auto-lawyers-blog/2011/03/22/allstate-must-pay-21-million-for-defaming-doctor/

However as others pointed out, the lawsuit was settled late last year, but the Collateral Damage I mentioned above, did in fact, as you point out, cause a contraction of Houston PI lawyers slowing down their referrals to Northshore after the suit was filed. Since Northshore had been 80% of the Company revenues up until that time, and the Florida centers were only just beginning to come on stream, this certainly significantly affected the last three quarters of 2012.

Now that this is behind, Houston referrals are rapidly coming back.


Recent Change in Florida Insurance Laws

As compared to Texas and 38 other states, where drivers are required to carry liability insurance which provides insurance for the "at fault driver" in case of legal action by the innocent party for personal injury; Florida has a "no fault" type Personal Injury Protection, (PIP) policy requirement along with a liability requirement where even though you are the innocent victim, if you are injured, your PIP pays for your injury.

Under the old law, Florida required minimum auto coverage of $10,000 PIP which could be used at any time and for the full amount through any legitimate medical practitioner. It also required a separate liability policy.

Under the new law, You can only use the PIP if it is used within 14 days of the accident and then only use the full $10,000 if you went to an Emergency Center. If you don't, then your PIP drops to only $2500.

The claim by Florida lawmakers for instituting this new policy is it will cut out fraudulent cases where an attorney just wants to file a quick nuisance suit to collect a quick settlement for a few thousand dollars.

How does this new law affect SPIN affiliates in Florida? In reality, not at all since under SPIN's model SPIN affiliates don't even hear about a case until four or five months of physical therapy have already been completed and soft tissue damage has been eliminated as the cause of continued pain and suffering. BUT, under the law of "unintended consequences", it now looks like it is going to be a significant positive in Florida as attorneys are now spending more and better time developing their real cases going after the "liability" side of the case. That was always SPIN's affiliate market.

But while the new law in Florida was being proposed, it appeared that the smaller cases that were "in the hopper" last year were being pushed ahead of the serious cases trying to get them resolved before the law change. And that did cause a slowdown in SPIN's Florida business last year.

From what I have been lead to believe, SPIN's FL business is now really starting to boom with the new law now in effect. I suggested to the Company, that they cover this more clearly in the upcoming year end Conference Call.

So, while the contraction caused by these two temporary events was underway the latter part of last year, instead of just "bemoaning their fate", Management should likely be commended for using this time to enhance and retool parts of the business model to increase profitability in the future.

IMO, Bottom Line. If you are still reading this board, you likely still have at least a passing interest in the Company and Stock. That being the case, your quandary is "Do I just wait and see how this and maybe next quarter looks like for proof of revitalization" or "Do I look at the stock as a cheap speculation of a well capitalized $.50 stock that has been profitable in 12 of the last 13 quarter, at this time and hope things are reversing." The choice is yours.

BTW, Let me just add one more comment. I was recently asked: "Since Dr. D has such a long track record of buying SPIN stock in the market (over 1.5 million shares at prices as high as $2.08), why hasn't he bought any more in the last two months?"

http://www.sec.gov/cgi-bin/own-disp?CIK=0001279311&action=getowner

Good question. The last purchase he made was in the $.55-.65 level ending early Dec. If you look at the Company website Investor Section, you will see SPIN has it Corporate Governance Guidelines filed. In that Policy, No Officer, Director or Employee of the Company can buy or sell stock from 15 days before the end of the Quarter, until two days after the numbers are reported. Under these requirements, he can not buy stock after Dec. 16, and unless the 10K is filed earlier than March 11, (which would only give him one day to buy), the Q1 "blackout" period kicks in meaning no buys or sells until two days after Q1 2013 is reported. Likely around May 15th.

I can assure you all, he would have loved to be able to buy the stock down here.