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  1. Hi Dennis,

    Thank you very much for your reply. I read your post with much appreciation and interest.

    I just like to clarify it is not my goal to “profit”, the loss is sunk cost, I have 0 expectation any of it will be recovered, and it is but nobody’s fault but my own. I’m only interested in the long-term fundamentals in the company and whether the new management is ethical/effective and whether the worst is yet to come. The share price follows fundamentals in the long-term and thus fluctuations in price is of secondary importance. Regarding new management, I have not read anything they’ve said, I basically researched their previous work experience and it appears they have successful track record growing companies from scratch.

    Regarding what would the new management do if they inherited a pig, although not really right thing to do, what happens often actual happens is that new management taking over an under-performing public company would lump all bad news into the first financial announcement. Typically it would involve huge write-offs and suspend dividends. They do this to tank the share price on purpose, so in the future only better news could be released reflecting their “superior” management, earning their bonuses and indirectly blaming previous management for the bad news. This is a pattern occurs regularly from blue-chips to small caps.

    What concerned me in this case is I read somewhere the previous management sold substantial amount of their shares at 28 cents, I don’t know if they did this voluntarily or forced to? If voluntarily, why did they do this and surely they think the worst is yet to come? And also, how did the new management actually come to join and their motivation to join BPS? Why they chose to inherit a pig after successful track record? There has been very little discussion around this. Did the old management choose them or a third party? If the old management choose them, does the new management have some kind of deal with old management behind the scene, or did the old management truly wanted some new management to completely shake things up and start afresh?

    I also find it interesting you mentioned you avoid the stock market entirely for ethical reasons. Your investigate work on Bartercard is surely better than any analyst if there is one and proven to be prescient. I also avoid unethical firms such as mining companies, but there are companies with ethical management and creating jobs for the community and thus worthy of management. I also agree with your conclusion that while things could turn, there is too much uncertainty, and you’re absolutely right laying off the staff from Bartercard will reduce the revenue (the question is whether the recent write-offs understated this effect). In fact, after I wrote the email last night, I pondered over these questions and thought the same, the fundamentals of BPS hinges on future growth, equity dilution can be good thing IF the raised equity can generate superior returns, it is a big IF. Even if the stock double or triple, due to the uncertainty I think it is better allocating my capital elsewhere where hopefully I’m smart enough to see more clearly.

    Cheers and God bless,

  2. > I have 0 expectation any of it will be recovered
    As I said, I simply don’t know the future. I just know that they’ve got very real problems under the hood.
    > new management taking over an under-performing public company would lump all bad news into the first financial announcement [and take credit for a rise]
    And lying to the public is “bad news”? That’s criminal conduct! It’s also indicative of the culture of extreme self-interest. Remember that the BPS thing was all about an exit strategy for three individuals. Thassall! Never forget that!
    > What concerned me in this case is … the previous management sold substantial amount of their shares at 28 cents, I don’t know if they did this voluntarily or forced to? If voluntarily, why did they do this and surely they think the worst is yet to come? And also, how did the new management actually come to join and their motivation to join BPS? Why they chose to inherit a pig after successful track record? There has been very little discussion around this. Did the old management choose them or a third party? If the old management choose them, does the new management have some kind of deal with old management behind the scene, or did the old management truly wanted some new management to completely shake things up and start afresh?
    Brilliant questions! That’s what I asked too. Deals behind the scenes are par for the course with these crooks.
    > I also agree with your conclusion that while things could turn, there is too much uncertainty
    That’s your value judgement which I respect. I just call it like it is with what I know.
    > laying off the staff from Bartercard will reduce the revenue (the question is whether the recent write-offs understated this effect).
    Yes it MIGHT do that but the cash required to keep the Bartercard thing ‘oinking’ along has been horrendous. How much of this expenditure reduction will impact operations negatively will remain to be seen. It’s good in the sense that they are saving, but as I said where are they creating value? Spend less AND earn more = happiness for the investors. Spend less and earn less = ???
    > the fundamentals of BPS hinges on future growth
    Well for a company built on BS and asset stripping with debt writing off normal for the Directors’ benefit, this ain’t going to occur is it? One of the principals of Bartercard before it became BPS explained (to one of my informants) that they were highly skilled in concealing debt. There’s your secret to success – except for the smaller dudes that this rips off.
    > equity dilution can be good thing IF the raised equity can generate superior returns, it is a big IF.
    I think we know the answer!
    > Even if the stock double or triple, due to the uncertainty I think it is better allocating my capital elsewhere
    Again this is outside my area of interest. Sadly for the little guys, I think the best thing for the world would be that Bartercard, Tess & Bucqi are closed down. The share price should revert to pennies and the crooks thrown into the stocks or jail. I’ve exposed them. Others with tomatoes or keys to the lockup can do the rest. That’s my ideal world. Thanks for responding

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