BCAP -
The Good:
Several potential revenue streams (debt conversion, TA, brokerage firm and eventually a bank of which only the convertible debt subsidiary is active) with the current business model. One subsidiary helps companies go through reverse mergers (like MMG), but the difference is that BCAP takes stock in the company as payment, not cash. During Q2, the company began liquidating some of the debt we hold in RIGH, this number will be reflective on the income statement when Q2 is released in a few weeks. Additonally, the comany has a TA in place, but they are not actively marketing these services as they are waiting to acquire a brokerage firm. This will offer a unique service for small/micro cap companies, thus the reason they are not marketing the TA services as they would essentially have similar services as other TA companies (i.e. no competitive advantage). The bank is part of the business plan, but that acquisition is probably some time out.
Upcoming events:
Audited Financials (according to the last PR, the financials should be at the auditors office)
S1 filing
Uplist to OTCBB
Preferred Shares sold to raise capital needed for brokerage firm acquisition
Company is relocating to larger office space (needed for the brokerage firm)
Changing incorporation to Delaware, from Florida, for the added business benefits
The Bad:
Last year, the company added about a billion shares to the SS, after a conference call stating he planned to reduce the AS. Unfortunately, this move dropped the share price to current levels. Well the good news is that the SS is going to be maintained for 2 year per PR a few weeks back. The CEO does not release too many PR's, therefore, the share price has been at these levels until the material events mentioned above begin being diseminatted to the shareholders. The CEO also tends to be pretty blunt and does not fluff company events. If something doesn't happen according to his deadline he will simply tell it like it is. This does not go well with OTC investors as everyone feels the PR's should take a more positive tone.
...This is a basic list, sorry if it is longer than you wanted. There will be a lot going on the next 2-3 months that should set the stage for whether the business plan will be successful. Acquiring a brokerage firm will be the big event that investors are looking forward to. Once the company can achieve consistent revenues the share price should start going up and be sustained this go around.
Baron Capital Enterprise, INC. (BCAP) Stock Research Links
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