Bayside Corp (OTCMKTS:BYSD) Trying to Cheer Investors Up Again
On July 23, 2013, Bayside Corp (OTCMKTS:BYSD) announced that they have been awarded a purchase order to supply 3.6 million metric tons of heavy oil annually. The contract was supposed to have a term of three years and it should have brought the company a whopping $160,500,000 in gross monthly revenues. The details around it should have been negotiated within thirty days of the issuance of the press release.
On the very next day, BYSD informed us that they have entered a joint venture agreement with an entity called C-Trade Group, Inc. The JV was about to bring copious amounts of cash which should have helped BYSD stay compliant with their purchase orders.
Then, a few days later, in a dramatic turn of events, they informed us that they have decided to spin out their oil and gas subsidiary. The reasons for their decision remained somewhat ambiguous, but the management team seemed determined to remove Bayside Petroleum (the entity that secured the massive purchase order) from BYSD‘s portfolio.
The latest financial report covers the third quarter of 2013 and it shows that none of the aforementioned things actually came into reality. According to it:
- there have been no spin-offs over the last twelve months
- they have recorded no quarterly revenues
- they have absolutely no cash on hand
As if that wasn’t bad enough, the statement also showed that they have around $564 thousand in current liabilities and that they have incurred absolutely no operating expenses during the quarter.
With that in mind, BYSD‘s atrocious stock performance isn’t really that much of a surprise. The hype around the purchase order (which, in turn, unleashed a paid promotion) sent the ticker above the $0.01 per share mark. The pressure at these sort of heights, however, proved to be too intense for BYSD and it soon dropped into the land of the triple zeros.
Now though, it’s coming back to life. Volume over the last couple of days has been quite high and the ticker managed three consecutive green sessions. Friday’s trading was particularly intense – more than 51 million shares changed hands while the price moved up by around 15%. BYSD closed the week above the $0.006 per share for the first time since July. So, what is causing all the commotion?
Well, the management team have yet to issue an official press release about it, but they have apparently formed a new subsidiary called Bitcoinz USA.com. As you might have guessed already, the new daughter company is going to be in the business of trading bitcoins – a market that, according to BYSD, is going to turn into “a billion dollar revolution“.
There’s no doubt that bitcoins are quite a hot topic, not only in Pennyland, but throughout the financial world. Is this enough to support BYSD though?
Some investors will probably prefer to steer clear because of the broken promises from last summer. Others, however, will jump in simply because of the general excitement around bitcoins which means that the stock remains highly speculative and unpredictable.
You should know that without additional financing, however, the company is going nowhere. And you should also probably keep in mind that basing your investment decision on nothing more than a few optimistic press releases isn’t your best bet. Especially with BYSD.
Growlife Inc (OTCBB:PHOT) is another company that saw some intense trading during Friday’s session. The ticker managed to rack up a dollar volume of nearly $17 million, but unfortunately, the price slid by around 10% and finished the week at $0.2049. Tiger Oil and Energy Inc (OTCMKTS:TGRO) too had a bad day. It closed Friday’s session with 13% in losses which means that it currently stands around 62% below its pump-induced 52-week high of $1.59.
