Ann: Appendix 4C - monthly, page-13

Nope, I have my paltry 3 million shares.  If I were affiliated with the company I would have quite a few million more than that.

I want every company I invest in to be a success - I think everyone does unless perhaps you are a trader looking for a bear stock.  I generally do not comment on stocks that I own but if I see someone bashing a stock without considering the big picture then I get annoyed.  

Penny stocks are not conventional investments.  You cannot look at what they are earning as they typically are not generating revenues when you buy them!  You cannot look at cash flows, or assume that the conventional indicators of a business being in trouble are as relevant.  All you know is that they are going to be in debt and under pressure until whatever they are doing is done.    You have to think beyond whatever is on the balance sheet and think more in terms of the ability of the company to complete whatever project they have in mind.  

I guess that is why such investments are called 'speculative' ones.

The personal qualities of the management, the time frames involved for the completion of the project, their ability to get finance and the possible returns that they might get on their business venture are the things that I pay the most attention to.  So I try to put myself in the shoes of the management team to figure out what might be happening.

To me going by what has been announced over the last 12 months, it seems clear that whatever their faults, that our management team have business experience and connections.  If they did not there is no way the company would still be here after the SOAR labs deal fell apart.  If it were me running the company we would be long gone. I sure as hell do not have anyone I can ask for a million dollar loan. 

Given the terrible balance sheets over the last 12 months and also given the fact that we are still here despite them the only logical conclusion to me as to why they are still here is that they have access to finance if this is needed..  That is just a guess on my part.

They have taken much longer than expected to get the exchange going and there have been lots of hiccups along the way.  If I was someone who had given them a loan and I wanted my money back I would have a strong vested interest in continuing to finance the exchange.  Hopefully these same people have deep enough pockets to keep us going until the issues with the regulatory bodies are sorted out.  

Perhaps also they have been able to mend some burnt bridges with the regulators.  Time is a great healer for wounds and they have been in talks with them for over a year now. Hopefully they have been able to establish a productive dialogue with them rather than an adversarial one.   

Given the fact we are in suspension I cannot sell my shares.  If I could I would probably have my money elsewhere at this time, but it is always a mistake to assume that a stock will fail just because at a certain time it is not doing well.  If these guys can still get finance to last them to the end of the year and if they can leverage their connections to get help marketing the exchange then perhaps things will be very different.

On the flipside the people who have been financing them might run out of time, money and patience.  The regulators might hate them and decide to shut them down.  Any number of things might cause them to fail.  If you are going to predict doom and gloom however then you need to consider things beyond just the balance sheet however because that is going to be bad no matter what until the time if/when they are successful..

If you are investing in penny stocks then you really need to have a strategy to deal with the risk and be prepared to lose whatever you invest in any given stock.  BPG is a high risk stock and if you are not comfortable with that risk then look for buyers.  If you can find Ragger he might be interested.

June/July is important to me as I have other stocks that are likely to have taken off by that time.  If they do I will be selling part of my investments to diversify my holdings a little more.  Not really relevant to the company.