BLT - Blis Technologies

[Stu]

Buncs, not sure what winner is rambling about, maybe all those random dots and dashes are some sort of code?
In answer to your question, it would be a combination of factors such as a very small market cap, very low (penny) share price, very low volume, holiday shut down, as well as other variables. So not really surprising to see BLT make big moves either way, any trading will likely cause relatively large changes, might well be down 20 percent the next day.

[simla]

Hi Buncs. The main thing to know about Blis is that it has never reported a profit. Trading shares is not my thing anyway, as the chances of out-trading the next guy never seem too great to me, but trading a share that has never made a profit is entirely based on guessing the psychology of the crowd. Without a profit, there is no mathematical basis of an underlying value, nothing to pins the swings and round-abouts to, so anything could happen. Also, you might like to study the market of any shares you are thinking of trading in. Study the patterns of offers and bids and decide just how many parties you think you are really dealing with in the market, as you might conclude there are less than you might think otherwise. Or not. Entirely your call.

So I own the shares as a long term hold because I am happy to support an up-and-coming company and risk losing the money if it doesn't make it, for the good of NZ. If they make it, which is not certain, there's probably pretty good money to be made on it, but even that depends on what profits they make if they do. As a beginner, I think you'd be wiser to start with something that's making a profit, but that's just a broad suggestion. I don't day trade, full stop.

If you want to buy something like Blis long term, then I suggest you do some serious reading so you know what you're getting into. Unfortunately, the Blis website has very little report history on it, but they would probably send you some if you asked. Some people may be owning the shares because they think there will be a turn around in the next year, but they will certainly have done their reading before taking that chance.

But, yes, there is an event. The company has just compulsorily purchased shares from all the shareholders with less than 25,000 shares and given them to a share broker to sell. There is probably a degree of deliberate lack of interest to see if those shares can be picked up cheaply, but that's a guess. Nobody knows how many shares there are to sell though, as the company has reasonably not announced the total. There were a maximum of 10 million odd, but the amount that will make it to the market will certainly be less than that, and may be a whole lot less than that. Very few have made it to market so far.

But Blis drifts around all the time because the company constantly makes good business moves yet doesn't seem to get a great deal of revenue to show for it. So everyone is constantly torn between they will. they won't get good revenue going. There isn't a great deal of liquidity on the market, but so far there appears to be a core of reliable shareholders when the company does issues, which sadly they have done a few times.

As Winner says, pretty low liquidity. And the NZX often has pretty low liquidity anyway, though some shares sell well, like KIP for example.

[simla]

ps. On the liquidity thing, you should know that only a small percentage of NZers own shares in NZ directly, or that's my understanding anyway. People like property. And they like investing off shore. I put this down to 1987, when a lot of people lost a lot of money on the sharemarket in NZ. 25 years ago? Yep, but people with money are typically older and remember. However, with the passage of time, more and more people will be on the market who have forgotten or weren't there. But Kiwisaver is probably soaking up a lot of their dollars now too, again leaving you with a small pool of fellow traders maybe, especially since the Kiwisavers seem to be run by people with the same memories!

I just mention this as traders need to know what their fellow traders are thinking. Just a thought and I could be wrong anyway.

[simla]

pps. You will also find share prices move all around the world just before and after the end of financial periods, when profits and losses get booked. Not saying that is what happened here, although it was an end of period week as it happens. Same thing happens around some dividend/distribution dates if the shares are liquid enough. Some people think you can make money out of timing these dates, although again I'm not convinced.

[fungus pudding]

Hi Buncs. The main thing to know about Blis is that it has never reported a profit. Trading shares is not my thing anyway, as the chances of out-trading the next guy never seem too great to me, but trading a share that has never made a profit is entirely based on guessing the psychology of the crowd. Without a profit, there is no mathematical basis of an underlying value, nothing to pins the swings and round-abouts to, so anything could happen. Also, you might like to study the market of any shares you are thinking of trading in. Study the patterns of offers and bids and decide just how many parties you think you are really dealing with in the market, as you might conclude there are less than you might think otherwise. Or not. Entirely your call.

So I own the shares as a long term hold because I am happy to support an up-and-coming company and risk losing the money if it doesn't make it, for the good of NZ.

How on earth does your shareholding benefit NZ? It doesn't even support the company. Nobody cares who owns them.

[winner69]

How on earth does your shareholding benefit NZ? It doesn't even support the company. Nobody cares who owns them.

In this case fungus you need to regularly give the company some more cash to stay afloat ...yes to the company and not other shareholders

As such you could say benefiting nz ...maybe regular contributions to keep a few on the dole

[fungus pudding]

In this case fungus you need to regularly give the company some more cash to stay afloat ...yes to the company and not other shareholders

As such you could say benefiting nz ...maybe regular contributions to keep a few on the dole

If you think that, you're probably better to give it to the Salvation army.

[winner69]

Maybe that other betting agency the TAB is a better exchange - I reckon Its a Dundeel is a cert in the Rosehill Guineas in Sydney tomorrow - No 2 in Race 5 - put a $1000 on and $1500 back - 50% profit and better than trying to day trade BLT - and then if you are really trying put that $1500 on the Cowboys to beat the Warriors on Monday - and when that happens you thou is now $2200 - heck 120% return for the weekend - pretty good eh

Didn't go the thou but $500 - Its a Dundeel at 1.45 into the Cowboys at $1.43 for a return of $1036

Its a Dundeel did his thing and no way will the Warriors beat the Cowboys so in the money - yippee

Heck I'll be able to buy 60,000 BLT shares .... ha ha

Just shows that the TAB is probably a better place to gamble than that other gambling exchange the NZX .... and you can get divies all day as well

[winner69]

If you think that, you're probably better to give it to the Salvation army.

Het that's what they do .... hadn't thought of the capital raisings as a charitable donation ... if oyu make it direct to the Sallies at least the govt gives you a decent bit back

[simla]

Yes, but I do both!

More seriously, NZ really does need this stuff. If you know anyone who has come out of biotech studies, you'll know that jobs are few and far between in NZ. If you don't think that matters, maybe you might want to watch the Niall Fergusson documentaries on Prime and Choice about the enormous energies of China, who get out there making stuff while so many NZers would rather just passively take windfall profits where they can find them, whether on the share market or on houses. There's no doubting who will benefit most between those two strategies. Seriously guys, this stuff really does matter. How much longer can NZ struggle on in the face of such crushing balance of payment problems? And, yes, I am still pretty hopeful of making money on this too. Visible progress on that front would be most welcome, however!