Blue Earth Inc (OTCMKTS:BBLU) Soaring Once Again
The trading volume for Blue Earth Inc (OTCMKTS:BBLU) from yesterday’s sessions is not that impressive – around 172 thousand shares changed hands which is a little over the three-month average of 158 thousand. The price movement, however is a different story. The ticker added nearly 12% to its value which means that when the closing bell rang, it was above the $3 mark for the third time in just over a month.
The most baffling thing is, there seems to be no apparent reason for the run. We checked for press releases from yesterday and there are none. Penny Stock Plays and their year-long campaign that we talked about in our previous article also seem to be sitting idle at the moment and BBLU have yet to file a new quarterly report. All in all, unlike other penny stocks like Premier Brands, Inc. f/k/a Tracksoft Systems Inc (OTCMKTS:BRND), Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) and Arch Therapeutics Inc (OTCBB:ARTH) who refuse to budge in the absence of paid promotion, BBLU seems to be moving rather well under its own steam.
That said, there are other things that differentiate BBLU from the aforementioned promoted ventures. Speaking of which, the term “promoted” might not be the best word to use when speaking of BBLU. As we mentioned numerous times, Small Cap Stock Plays (SCSP) started sending in some emails more than a year ago. A compensation of $80,000 has been disclosed and it was in the form of 80,000 free trading shares. Since then, the same exact disclaimer has been featured under each and every email for BBLU that we have received from SCSP and while we can’t be sure if they have managed to sell them already, the fact remains that the effect on the stock is not as catastrophic as what we’re used to. Earlier today we wrote about ScripsAmerica, Inc. (OTCBB:SCRC) and if you read through our article, you will see that the promotion that Money Runners carried out for them resulted in a scary crash and lots of agitated investors.
While there was some hesitation during the last couple of weeks, BBLU have managed to display a much more consistent performance. Today, however, is shaping up to be quite a day and the reason for this is a press release that was published around 5:30 AM. More specifically, the words “Over $750 Million in Recurring Revenues” contained in the headline will probably make today’s trading quite hectic and in all honesty, even we were eager to open the PR and see what the whole thing’s about.
Apparently, two acquisitions were completed. One is of an EPCM (engineering, procurement, construction and management) company and the other is of another affiliated renewable energy venture. The names of the acquired companies are IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc. and the projected revenues that will come from them should amount to around $75 million per year.
That said, when they first announced the acquisitions back in April, they said that the average proceeds from the new subsidiaries should be about $80 million per year. Apparently, some re-calculations were in order during the due diligence period but even the new figure sounds rather tasty. The question now is: “How accurate will it turn out to be?”.
Well, at this point, nobody can say that for sure, but we’ve already seen that BBLU turn out to be some way off in their predictions every now and then. We wrote about them back in June and if you have a quick look at our article, you will see that while we were doing our research, we stumbled upon an interview with BBLU‘s CEO, Dr. Johnny Thomas from December 2011. In it he said that he expects to see revenues for the fiscal 2012 amounting to around $35 million. As we already mentioned, the actual number contained in the 10-K equals to less than $10 million.
Will that happen to the current bright projections? We’ll need to wait and see, but reality sometimes turns out to be quite a lot harsher than people anticipate and we reckon that you should keep this in mind. Especially when you are considering an investment in a penny stock venture.
