Replies to post #224859 on Bebida Beverage Company (BBDA)

[Locomike]

I thought you were a big Ahole when i started investing in this company. But now i know you are the light of this forum. Exposure of the truth through you is heavenly. Unfortunately i learned the hard way loosing thousands. Thanks for being here Skipperandgilligan!

[Whiplash_Investor]

Thanks for finding and posting. My comments are below the quoted section of the Dec 17th, 2009 PR.

MOORESVILLE, NC -- (Marketwire) -- 12/17/09 -- Today BeBevCo (Bebida Beverage Company) (PINKSHEETS: BBDA) has announced that in early January it will release the existing gag on the transfer agent that handles the distribution of BeBevCo shares. In an effort to be more transparent to shareholders, this will provide them the ability to see day-to-day where BeBevCo is. Upon doing this there is no immediate plan to install a share cap on the company shares or a reverse split.

"Because there are so many deals in the works currently around the country and internationally, we feel it is essential to keep the share structure as fluid as we can at this time. The sole purpose for this is that it is not inconceivable that during January and February our sales and distribution could grow exponentially, when that happens there will be a situation where raising capital to meet product demands and brand building support is critical to increase overall sales numbers. When the end of Q-1 draws near and the revenues are received, BeBevCo will then start an equal to or greater stock buyback and retire shares," said CEO Brian Weber. "It is absolutely not our intention to run our share structure to the abyss and do a reverse split. However because of the quantity of authorized shares that existed prior to our takeover of BeBevCo, it has created a fine line to balance in moving this company forward. Therefore we will absolutely not handcuff this company and all the efforts of its dedicated staff and management to become the leaders in the Relaxation beverage Category."

Besides acknowledging Skipper's DD that BW has said he would do a buyback on Dec 17th, 2009 (see bolded red in quote) and gave a definitive timeline of Qtr 1 to start a buyback (can't really defend this, other than in para 5 below), there are a few other things on other subjects that I bolded and would like to comment on:

1) The TA must have been gagged at the time of the PR (Dec 09). I don't know how long, but it is worthy to note that BW started as CEO in April 2009. He says he ungagged TA to be more transparent

2) No "immediate" plan for share cap (means he will issue shares if and as needed) or R/S (means no IMMEDIATE plan for R/S - note: did not say "no R/S"). I wonder how he worded other mentions on RS up to Oct 2010? So far, all I've heard is he lied about it, saying "No R/S", yet I see no lie here. I see no "No R/S" in here. This is why I ask for proof.

3) The bolded red in the quote is what Skipper was referring to and addressed already.

4) He then says "not our intention to run the SS into an abyss and R/S." I can fully understand the lack of faith shareholders at that time had, given he wrote this and buyback commitment, then issued 1.8B shares instead of buyback, then 3.0B the following qtr. By mid 2010, PPS was at No Bid, so no further shares could be issued in third qtr, so he R/S'd on Oct 7th, 2010, taking 12.3B down to 12.3M. Living through 3) and 4) would turn anyone negative.

5) In the next sentence he says essentially what he did this past Mar, that he won't handcuff the company's growth (hold growth hostage to SS), implying what he said in 2) - to cap the SS. He's clearly saying he will be selling new shares if he needs to do so. I also think he meant, though not said, that buyback is at risk. The interesting thing is that he says both buyback in 1st qtr and he may have to sell shares...incompatible concepts, but covering any contingency that may come up. I would take these two statements together and take from it that he will issue shares if he has to and buyback if he can, but just my take.

Supporting Info - Share Issuances from Mar 09 to qtr post R/S

Ending Mar 31, 2009, OS was 3.7B (all Hochstedler)
Ending Jun 30, 2009, BW/Hoch issued 1.8B (OS 5.5B)
Ending Sep 30, 2009, BW issued 925M (OS 6.4B)
Ending Dec 31, 2009, BW issued 1.1B (OS 7.5B)
Ending Mar 31, 2010, BW issued 1.8B (OS 9.3B)
Ending Jun 30, 2010, BW issued 3.0B (OS 12.3B)
Ending Sep 30, 2010, BW issued None (OS 12.3B) PPS at No Bid
R/S 1:1000 Oct 7, 2010 (OS 12.3M)
In the next 15 months, it rose again to 2.249B by Jun 30, 2012.

His actions since last June are more important to current investing, but each must decide for themselves.