I’d be misleading everyone if I didn’t admit I was disappointed in the price performance of BPTR yesterday on the heels of their outstanding year end numbers. After all, the company delivered $.14 EPS on a 50% increase in revs. Awesome performance. I continue to believe the stock is absurdly undervalued, and have decided to wait it out with my holdings. If I hold the stock past October of ’05, the profits will become long term capital gains and reduce the tax consequences considerably.
BPTR traded the highest volume in the stock’s history yesterday, at least as far back as my chart goes. Clearly, some early buyer was off loading a very large block.
While this is disappointing in the short term, it is clear old shareholders are getting out and new shareholders are coming in.
The numbers are just too good to give up on this one despite the fact that I see a tough market ahead for the next few months.
For those who like to invest in value and earnings, and wait for others to recognize that value and be willing to pay more for it, this stock is for you.
You need not have to post this comment. I was looking at BPTR’s after hours tradeing, wow, what’s in the wind? 300,000 shares and down .32, just wanted to bring it to your attention. As I said you need not have to post this.
Editor: I think you meant down $.032- down $.32 would give me a heart attack. I think the market is the problem here. I am a holder.
What would be the chances of this getting off the otcbb and get on something better perhaps?
Editor: I believe they have the AMEX in sight, but no certanties.
Yes, they are looking at the Amex. The stock has to hit 1.40 per share to have sufficient mkt. cap. to apply. Definitely do-able! Then watch out.
Editor: I am quite sure the AMEX would want them. Hope you are right. Sometimes investments just take longer to mature than we all want them to.
I noticed that BPTR, ZAPZ and MRKL showed up on the Regulation SHO Threshold Security List for March 24, 2005. Does that mean these stocks are under naked trading pressure and should be sold? I am not really sure what being on this list means or how it affects these stocks but it doesn’t sound good. Your advice please.
Editor: So far, for my money, the SEC Threshold list and the enforcement of Regulation SHO is one big joke. Most insiders in the industry simply believe DTC, the organization charged with reporting for the Threshold list, is not reporting properly. The DTC makes millions in fees off open naked short postions, and the DTC is owned by the NYSE, the NASDAQ, and others. Regulation SHO is a great idea, but unless it is vigorously enforced, it is a joke. One of these days I will publish an edition with some follow up on this issue. In my mind, it is not a factor in a stock buying or selling decision.
Based on fundamentals, Bptr shouldbe streaking toward the moon.I want to load up but am afraid to because I fear some unforseen problem is holding it back. What say you?
Editor: Here’s what I say. Just like many people, I am disappointed that the stock did not trade better off year end numbers, particularly in light of the highest volume day in the stock’s history. However, if you look at the long term picture, this company was almost dead a year ago October, and the stock was trading at about $.12. Since it has been trading for a number of years, the stock has matured and a lot of the I&O are in the public market. My company purchased 100,000 shares at $.60 in October. I am not a seller, but not buying more at this time. I have no indication of any kind that there is anything amiss at the company. In fact, I hear the opposite. They are going to invest some money in International expansion, and they might not do as well as they have in the US. Other than that, I hear business is very strong.
I’m very disappointed with the BPTR action. Number is good, but just didn’t even up a bit since earning day. If fact, it’s going down each day.
Editor: What can I say- I couldn’t agree more.
Is BPTR the same shit as NTDL ????
Editor: I don’t believe you should be in the stock market. Could the stock go down? Sure. However, if you can’t recognize the difference between a company that achieves $5 million in net profits on over $50 million in sales, vs. a company with $4 million in total sales and minimal growth, then the stock market is not for you. The two cannot even be compared. Even though I’m generally responsive to reasonable questions, it would appear that you don’t understand how to evaluate the fundamentals of a company. The stock market is not for you. Stick to mutual funds and let someone else make the investments for you.
Where has the trading volume gone for BPTR? The report was pretty positive, I would have thought there would be more interest in it by now.
Editor: It’s a major disappointment to me also. I don’t know when the market is going to catch on to this one. A fund manager I know who owns 2 million shares and has been buying the stock since it was $.30 said to me- “We don’t sell stocks with 50% growth rates trading a 6 times last year’s earnings”. He summed it up for me.
O.K. is .99 resistance now? what gives why is this stock stuck in the mud?
Editor: I believe this stock is in limbo because it’s not high priced enough to garner insitutional support, and the company is not good and finding retail investors. Someday, this log jam will be broken.
Anythng more thought here?
Editor: Simply sell it if you are not longer term. If you bought it for a trade, sell it. If you bought if for the value, just wait for it to be discovered.
How frustrating is this? SP needs to be higher to get off the OTCC but cant go higher becasue its on the OTCC. ‘Chicken or Egg’
Editor: Basically, I believe this stock is caught in the limbo of being too low priced for institutions, and retail investors being scared of the market. I am simply going to wait it out. Something will change someday.
RE; #10 … in sincerity …. not meant sarcasticly …. THANK YOU .. I was just wondering .. sorry if I offended ….
Editor: Not at all. All input it greatly appreciated for everyone to read. Anyone who is involved in this stock on the long side has to be frustrated with the valuation. If the company keeps up the pace, we will have our day- someday.
i bought 2000 shares at 1.03. What should i do with this stock that is killing this newbie investor. I do NOT understand why people are selling this stock
Editor: Hopefully you read last weekend’s edition entitled “Short Term Traders Stay Out”. I was very specific. I told everyone I believed the microcap market was very weak right now, and trades would be hard to come by. I suggested selling all microcap postions if you weren’t long term. Here’s a link if you missed it:
http://www.otcjournal.com/archive/listserv/20050402-1.html
People often ask me if I’m long term or a short term trader. The answer is both. I have some money segregated for trading, and some for long term holds. I have decided BPTR is a long term hold for me. Therefore, I really don’t care if it wants to trade down in a weak market. If it gets cheap enough, I may buy more if I have the money. $.70 would be the level that would get me buying for sure.
Does anybody else think that the price is being intentionally “walked” down to a lower price level for some reason. I am not too fond of the mm’s when they do that, if that is what is going on. Maybe they see a good company and want in cheap.
Editor: I think a bunch of people bought the stock thinking it would trade up on the earnings release. When it didn’t, many lost patience and have been slowing selling. It will find a level of support, and make another effort of 1st quarter numbers.
When is Brandpartners releasing their first quarter results?
Editor: First or second week of May
Just thought I would let you know that current price action is not bothering me (same applies to NWKI and HYPD). With respect to BPTR, a lot of people bought this at much lower prices and have “sold on the news”. I doubt if many of them sold a large proportion of their holdings. Patience, patience, patience!
Editor: You and I share the same view. As I said in last week’s edition, this is not a traders market. Long term investors only.
The overall market isn’t doing well and BPTR would be hard-pressed to hit new 52-week highs when the backdrop is poor. Looks like the share price is stabilizing in the mid 80-cent range for now. I see BPTR as buyout candidate if the share price remains out of whack with the revenue and earnings quantum. Another possibility would be going private. A trailing P/E of 6 (based on 0.14EPS in operating earnings for 2004) is awfully lean. What could light a fire under the share price, IMHO, would be gaining significant business from a major client in Europe and possibly South America downstream. It sounds like a one-man show for their European presence and I hope that they’re keeping those costs in check while they work with their European partner on establishing new contracts. The move to the Amex or NASDAQ National Market appears stalled until the share price is above $1.40 or so, which might take another 6-12 months here (hopefully less). What strikes me about BPTR are the very low price/sales and price/earnings (ttm) ratios. The P/S sales ratio is often higher than 2.0 for similar firms; BTPR’s P/S ratio is closer to 0.60 currently. Can anyone explain the background and basis for the $24M in goodwill on the balance sheet? Appears that BPTR is on track to meet its $65M revenue goal for 2005. Definitely a long-term play here as the distribution/consolidation plays out. Shares have dropped in price on fairly light volume.
Editor: $24 million in good will reflects the original purchase of Wiley Brothers, the real operating subsidiary.
When ever the price doesn’t perform as desired, the excuse is”LONG TERM BUYERS ONLY”. Very disingenuous, don’t you think?
Editor: Usually I’m not too harsh, but in this case I can’t help myself. That’s an absurd comment. When I say long term buyers only, it means the market conditions suck right now. In case you haven’t noticed, stocks are falling apart everywhere if they’re not energy. It’s my way of saying if you’re not prepared to hang in there for the long term, and thinking the stock is going to go up as soon as you buy it, stay away. If you’re afraid of eroding value, sell. The market is tough right now and it will grind you up if you stare at your quotes all day. That’s genuine honest insight you can take to heart. Not “disingenuous” as you say. When the market turns and there are some good short term trading opportunities, I will let everyone know.
I noticed that one of the main officers in the company sold a significant portion of his shares in late March. What impact do you think this had on other traders. And why after their upbeat conference call would one of the officers be selling shares.
Editor: According to the non-edgar SEC filings, the only shares that have been sold this year amount to 27,500. That’s nothing. I’m not sure where you are getting your information, but I cannot confirm it. In a non-open market transaction, the Chairman acquired and additional 400k shares.
Why was this stock so active yesterday? 350,000 + shares.
Editor: I believe it was because I published an edition reminding people of the value and the stock had been trading up in a awful market environment. The stock was trading quite nicely until mid day, and then a seller sabotaged all the fun.
Why isn’t the price going up? This company is doing really well! What gives?
Editor: In yesterday’s conference call the Chairman attributed the stock’s weak performance to lack of visibility as a Bulletin Board listed company. He said they felt they could get an AMEX listing, and eventually move to the NASDAQ. He stated many fund managers are precluded from participating because of the price and the listing.
While it is true, these are obstacles, I believe the company needs to commit more attention to the market side and really get out there with it’s story. We now have 5 quarters of profitabilty in a row. Also, the market conditions are very tough for microcaps right now. This stock could trade extremely well in the next leg up.
30 new contracts for 2.5 million. Not bad for new customer growth. Doesn’t matter the amount of money they are doing with these customers, but it’s the fact that they landed 30 new customers, are starting a relationship with them, and will have the opportunity in the future to sell them more is the significant points here. Hat’s off to the management at BPTR. I think the best way to get the stock price going up is to keep up this trend.
Editor: There needs to be an epiphanal change here as far as the stock goes. I don’t know how it will happen, but if they keep generating the numbers, it will happen eventually.
What do you expect for BPTR in the next 6 months? I still think it’s a great stock.
Editor: I disagree- it’s a great little company, but a lousy stock. If it were a good stock- it would be $2 to $3 now. Working on an outlook for growth from the company.