Bartercard – “Cataclysmic Wealth Reduction”

The Bartercard (ASX:BPS) smoke & mirrors game run by the Directors Smiles in Suits is almost up. Investors are wisening up. The share price has fallen like a stone. People are doing the calculations and coming up with the real answers . . . it’s a mess . . . bullshit . . . debt [is] up . . . paying themselves . . . $ZERO cash . . . ridiculous [borrowing] . . . wealth destruction at a cataclysmic rate. And it’s all absolutely no surprise to those who have followed these crooks for years decades. I’ve been sounding the alarm hard since their dodgy IPO! Here’s more directly from the crooks themselves and from the chatrooms of investors in Australia . . . 

 

BPS Technology is in deep doodoo with a 50% drop in share price in the last 12 months and a serious hit in the last two weeks as the smoke and mirrors game run by the Smiles in Suits is fast coming adrift. All because some insiders caught someone’s hands in the till with insider trading stuff and called him to account.

The decision to pay a dividend from borrowed money says it all. Bye Bye Trevor, but with the loot!

In the last week, ASX:BPS Technology has issued this notice:

CAPITAL MANAGEMENT NOTICE

BPS Technology Limited (Company)(ASX: BPS) is publishing an investor presentation in relation to the potential capital raise being undertaken in Australia and New Zealand by Morgans and Baillieu Holst Stock Brokers announced to market yesterday.

The capital raise now being undertaken reflects the need to replace the funds applied to repayment of a Convertible Note as previously disclosed to market and provide working capital.

In other words they are broke, again, again. What a surprise! [sarcasm].

The delay in the replacement of the funds was caused by the disruptive actions of the recently called EGM. This in turn caused the Board to act in the interests of all shareholder by delaying the Dividend payment to post the AGM.

In addition to the above the Board has resolved to implement a Share Buy Back Policy to enable it in the future and when required to buy back the Company’s shares on market.

Let me make this abundantly clear if I haven’t made it clear before now . . . Bartercard has NEVER returned anything meaningful to its investors in 30 years of doing business. The only exception to this is for the insiders. It’s latest iteration by way of the publicly listed company ASX:BPS is a sham, always has been and with the same Directors in the hot seat always will be. The company has always been and is currently being stripped of its cash and assets which will likely be bought by the ‘hoods’ for a song when it all crumbles. It’s a recurring pattern and has been very effective for these Smiles in Suits for a very long time!

But don’t listen to me. Just check the ASX:BPS share price and wing over to Hot Copper where the Aussie Investors chat about these sorts of things:

The company is blaming Alceon and LHC for their own mistakes… Poor form. The whole thing reeks of bullshit to me. Considering exiting my position at this stage.

You should have been reading my blog posts and you would never have invested!

What a mess in here! Have been followed this for a while, though they do pay dividend before but it does not make sense to me this way as why you want to pay dividend why you still have debt burden?

Well duh! The decision-makers own the shares. Borrow and pay yourself, why not? It’s cool fun. And it’s not a mess at all. It’s designed this way.

With mature corp this OK because this can be explained by their capital structure management but not suitable for such a small or pennies like BPS, and for this I just cant buy into it. Now they raise capital for futher dilution with the purpose of buying back and dividend payment. What a joke in here, you just give back your own shareholders’ money, no value creation but just further decreasing shareholders’ wealth.

I love it . . . this investor is getting the drift! No value creation . . . that’s it in one! The last decade has been down. down, down and these boys are and will continue to milk it all the way!

I think they pay dividend cause they own 30 million shares.
This way they get 2.2 cents for each share they own.
Paying themselves $660,000 plus there normal salaries

Thassright! You’re onto it!

Just done quick analysis on the pro forma balance sheet.
Net debt up $6.1m for quarter.
Only $3.2m cash at 30 Sept. how did they think they were going to pay dividend???

Easy – dilute the shares and swing a fast one with institutional investors whom they have a cosy relationship with who slip in a few million of Ma & Pa’s money. That’s how they did the IPO. Works a treat.

At a burn rate of $500k per week as at today, they have approx $ZERO in the bank.
That explains this ridiculous raising.
Wealth destruction at a cataclysmic rate.

Yup!

Now this commenter has been onto these sharks for quite a while advising other investors of the trouble under the ASX:BPS hood. His analysis is dead right. He says “burn rate”. I use the phrase haemorrhaging cash. Same thing.

Wow…how the hell are they going to pay the dividend in Jan-18 as promised…2.25c @ 114m shares = ~$2.5m??

Borrow. Secure more investment all based on hot air, smoke and cracking mirrors.

@ $500k / week + $2.5m dividend in Jan-18 means the business will be out of cash again in Feb/Mar-18. Their playbook then is probably to re-draw the debt facilities until cash (unearned revenue) starts to come in from entertainment book sales….until this cash runs out again in Oct/Nov-18, when they tap the market for more equity. What a dog.

Euthanase it.

Deep cuts to the cost base are required ASAP for this business to preserve shareholder value.

Nope! It will never happen, and the reason is that all profits are designed to get milked by the people running the show. BPS Technology was never intended to be a successful business that created real value. You could see that from their original prospectus – all BS! Any cash received only goes in one direction, and it won’t be the shareholders’.

Oh dear.
Thanks for the info.
Directors having a field day on salaries..
No thanks.
Watch with interest.
Its bound to be shorted.pity.
Glta.

Yup! You’ve got it. “No thanks” is the smartest thing you can say.

Keep an eye out for future comments like these at Hot Copper and track backwards to see historical comments if you’re still not convinced!

In further news BPS Technology thanks Trevor Dietz for passing the ball to Iain Dunstan who is the new CEO. It’s a hospital pass and I reckon a deal to get rid of an insider trader caught with his hands in the till. Oh and they’ve also just asked for more cash to keep the fires burning as well – another few million has just come in recently from “institutional & sophisticated investors” – Yeah right! Spare me days! Another corporate deal stitched up by these crooks where Ma and Pa investors won’t know where their money is going, for sure!

I reckon God has a special place reserved for people like these without a conscience. Mark my words, not one of these “institutional & sophisticated investors” will ever see their money again, and even at .451c!

Here’s some more wisdom from the ‘street’ to laugh (or cry) over:

Muppets, who announces a cap raise and buyback in the same week.

Only company I know doing this is UOS which helps the controlling family creep to compulsory acquisition

Funny you should talk about that!

To announce a share buyback implies the company has sufficient cash resources (or debt facilities) to complete.

To announce a cap raising 5 days after announcing a share buyback is nonsensical and misleading.

What a shame these directors just missed getting kicked out.

I feel for those who bought after the buyback announcement who I believe have been profoundly misled by directors.

Hope those that called the shareholder meeting can call a new meeting.

Nope – they’ve cut and run. The bad boys won.

I’m willing to bet directors and management will be share grabbing in the cap raising

Hmmmmmm!

 

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