Blackwell International (BGI)

[whatsup]

I see that BGI is rumoured to be reborn as a possible back door listing.
As it is well known a back door listing is "worth" approx $1 million and as such the current M C of BGI is imo 4 X over priced & should be selling for .002 !!

[Balance]

I see that BGI is rumoured to be reborn as a possible back door listing.
As it is well known a back door listing is "worth" approx $1 million and as such the current M C of BGI is imo 4 X over priced & should be selling for .002 !!

Guess you have not heard the rumour about what's going into BGI then!

[beetills]

Guess you have not heard the rumour about what's going into BGI then!

Does it involve Brent King?

[whatsup]

Does it involve Brent King?

No I havent but imo B K does not thrill me, can you inform me of his business success s ?

[nztx]

Something going on here with BGI ? -- bit of an upswing from lowly 0.004 in recent days to 0.006 today

Or just another obscure forum whispering fat cat bounce before retracing downwards ?

Let's face it, they dont appear to have any continuing business in the camp now

[Balance]

No compensation for those hoodwinked into paying 9c for BGI and now worth 0.5c = 95.5% loss.

But NZX reaps the benefit with a $40,000 fine.

http://nzx-prod-s7fsd7f98s.s3-websit...624/360388.pdf

[JohnnyTheHorse]

No compensation for those hoodwinked into paying 9c for BGI and now worth 0.5c = 95.5% loss.

But NZX reaps the benefit with a $40,000 fine.

http://nzx-prod-s7fsd7f98s.s3-websit...624/360388.pdf

Honestly I'd be surprised if anyone was buying because of the NTA figure. I followed it closely and it was just a 'Sharesies pump'. Basically a fly wheel with more and more buying only because it's going up, then a big dump. Happened with a few other stocks too (CBD).

Doesn't excuse the negligence of BGI however.

[MarineSalvage]

Honestly I'd be surprised if anyone was buying because of the NTA figure. I followed it closely and it was just a 'Sharesies pump'. Basically a fly wheel with more and more buying only because it's going up, then a big dump. Happened with a few other stocks too (CBD).

Doesn't excuse the negligence of BGI however.

Was a mob on Sharesies FB page all falling over themselves to crow about their returns - anyone who pointed out that it was incorrect information was declared to be a "bad investor" - the same crowing crowd then got all angry when lost out, but I suspect none of them had even thought about the NTA - they just saw "Jane from Dunedin" or "Bill from the North Shore" saying how amazing BGI was...

[Sideshow Bob]

The very large majority claiming they invested off the NTA figure clearly are trying to find an excuse for their losses. They hadn't even opened the annual report or questioned anything - and probably don't know what NTA stands for and what the company even did. Although at the same time the NZX couldn't even work out the NTA either.....

It was clearly, to use MarineSalvage's words, the Sharsies mob falling over themselves. I was on the FB page and can recall a wannabe analyst saying price was going to 30-40c. Dangerous stuff, and just FOMO. Unfortunately some of those got burnt badly.

Just had a look back to july 2020 and there was a post asking what was going on with BGI. 205 replies....

"To the moon!!"
"Everyone back in, 10 cents here we come"
"I'm new to this but what exactly is Net Tangible Asset"
"This has been the most insane ride ever!"
"Are people going to sell at this point? I'm so confused on what to do."
"I'm at 310% return and its still going up!"

What I had a good laugh in the announcement was this:

NZ RegCo subsequently assessed that the NTA was potentially incorrect, and sought clarification from BGI. BGI’s shares were placed into a trading halt on 23 July 2020, pending validation by BGI. BGI confirmed that the NTA figure was incorrect, and released a market announcement to this effect at 4.02pm. Trading in BGI’s shares resumed on 24 July 2020, and BGI’s share price fell from $0.091 to $0.043 that day, falling further to $0.015 by 31 July 2020.

I actually emailed the NZX on the 22nd of July 2020 to raise the issue that the stated NTA was incorrect, and received a response from the NZX the morning of the 23rd and went into a trading halt 1hr 49 minutes later. So it appears that I triggered the trading halt and subsequent drop in price to a usual level.

I'm actually quite proud that I highlighted this. Shoddy and extremely sloppy of the company, especially when repeatedly putting out incorrect info over time. $40,000 is nothing when there was substantial director sales, selling quite a few million in shares, and sizeable profits. Very shameful.

I feel very sorry for those who lost their money, but it would have happened at some stage when someone else hightlighted this issue, and more people might have lost by then. Hopefully some look at it as a learning experience. Last time I looked, it was a company that had less than $1m in assets, turned over <$1m, it loss was half its turnover and at its peak was valued over $42m. So no one was really looking.

[nztx]

Whispers out on some Asian forum were rumored to be reason for rapid SP rise, if I remember
correctly ?