Trading has just finished on the second day of BPS Technology’s trading on the ASX. Shares are in freefall at close of business with shares 90c down still further from 96c on the first day. There’s a long way to go yet before the market price reflects the true value of BPS, which I estimate to be a liability of around -$3.00.
I’ve blogged extensively about the Bartercard IPO . . . how the company scrambled together a dodgy Prospectus, how it had been losing ground in its home market (Australia) for the last 5 years; how it was an asset strip with huge undeclared trade liabilities; how the Directors were effectively paying themselves to save their bacon from a dud purchase and how they used the IPO to clear debt and feather a few nests in the process. It is and will always be seen to be a failure and a con – except for a few people who got their money out of the deal.
Non-executive directors will want to stay right away from BPS now that the sell-off is under way. There will never be any real buyers, nor should there ever be, for the only buyers in this
donkey pig called BPS Technology are pretty much all Family, Friends and Fools. There was no marketing; no hype; no plans to build a strong BPS listing . . it was all about one thing only – the Directors getting paid out for their Bartercard investment. Nothing else really matters any more, nor has it ever!
Two days is only a short time into the companies future history but shareholders would do well to heed my advice of yesterday and sell out now, fast for at 96c losses will have been small by comparison to where this company is headed when the truth all comes out. Down to 90c with a ten percent loss on today’s second day trading is still a great deal for the seller today. Well done whoever you are.
My guess is that the seller never paid for those shares (or that they paid in Bartercard Trade Dollars) and it represents a fantastic cash conversion and payday – be they gifted for services rendered, or traded for something of much lesser value, this is a spectacular deal to be able to cash out at 90c in the dollar!
I still have lots of unanswered questions around this IPO:
- How did offshore entities get their hands on these things? Paul Bolte and Simon Barker either have shares or are associated with people who do. They are not resident in Australia or New Zealand.
- Who sold off these shares today at 90%? How did they get them?
- There are different figures in different announcements, on the total number of shares. I’m totally confused. When I look at some figures there are $2m shares missing – were they kept back or gifted for backroom deals?
- How can all these finance companies and superannuation people invest into something so ridiculous as BPS – unless it was in somebody’s personal interest to ‘arrange’ it for the float to proceed.
- What was the deal with the Bartercard staff that was struck to get their moneys? Are they happy with a 10% haircut in just two days? Imagine going to your valuable staff members and saying, oh sorry guys we’ve just had a bad week, so we’re only paying you 90% of your pay packet this week” What would that do for staff morale?
- When and how will the Bartercard Directors stop the freefall? Buy at a premium to keep the price up? I doubt it – they’ve got their money. Spin another yarn? What can you say when the market speaks louder than you can?
- WTF is happening down there in Australia? Is there a Plan B?
I very much doubt it. This IPO was Plan B.
BPS is a pig. I’ve said it from the very DAY that the Prospectus came out in July 2014.
I shared in my previous post that Bartercard is a blot on the corporate landscape. BPS Technology is little more than a figment of three Directors’ imagination and their projections are the stuff of Alice in Wonderland.
I’ll say it now again . . . sell your shares now, even at 90c, or 80c, or 70c, hell even at 50c, because there’s a long way to go down yet. Keep them and you should expect to take a bath. The news was bad yesterday, worse today and it will be not worth wasting the digital footprint to continue blogging about this trend again tomorrow.
‘Penny-stocks” would be a compliment to this company with off-balance debt in the stratosphere, ethics that make the man with horns look like a saint and a management team that can only be called ‘smiles-in-suits’. Sorry guys, you might be great golfers, fathers, husbands and have all the friends in the world in your little world, but your creation BPS Technology doesn’t stack up and all those little old ladies who lost out in their super funds; those staff, family and friends who put their readies into your concoction will know this too very shortly if they haven’t worked it out already.
I promise you that if I’m wrong and you make a go of it, I will THE FIRST to congratulate you and apologise. At this point though there’s only one phrase I can use, “Told you so!”