Blue Sphere Corp (OTCMKTS:BLSP) Gets Viciously Corrected

[[tagnumber 0]][[tagnumber 1]]After a few months of sliding down we saw the stock of Blue Sphere Corp (OTCMKTS:BLSP) reach a 52–week low of $0.0088 per share in the beginning of the month. After that the ticker began to rise for no apparent reason and got well above the 2 cent per share mark in a matter of just five sessions.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The ascent was rather strange, considering the fact that it wasn’t backed up by any press releases, paid promotional emails or SEC filings. It is even stranger when you take into account the disturbing numbers contained in BLSP’s financial report for the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 9]] [[tagnumber 10]]cash: $267 thousand[[tagnumber 11]] [[tagnumber 10]]current assets: $465 thousand[[tagnumber 11]] [[tagnumber 10]]current liabilities: $5.87 million[[tagnumber 11]] [[tagnumber 10]]revenues: ZERO (since inception)[[tagnumber 11]] [[tagnumber 10]]quarterly net loss: $3.13 million[[tagnumber 11]] [[tagnumber 20]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile, the company did manage to issue a press release that sounded very optimistic, but was in fact quite troubling. On Tuesday [[tagnumber 24]]BLSP[[tagnumber 25]] announced that they have converted all the convertible debentures that the company had previously issued, which means that there will be quite a lot of shares hitting the market at discounted prices.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company CEO, Shlomi Palas stated that he thinks the stock is “[[tagnumber 30]]significantly undervalued[[tagnumber 31]]” and the reason behind this argument was that the balance sheet was stronger. When you compare the report for the second quarter to the first, however, you see that this is simply detached from reality. The cash reserve has shrunk by 28%, the quarterly net loss has grown by some 72% and the liabilities have gone up by some 319%.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is exactly the reason for which we are not surprised that [[tagnumber 24]]BLSP[[tagnumber 25]] got corrected so viciously yesterday, despite the fact that the company was touted by SeeThruEquity. The ticker lost a total of 27.27% of its value and fell to $0.016, the low for the day. A total of 6.05 million shares changed hands and generated $117 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In conclusion, [[tagnumber 24]]BLSP[[tagnumber 25]] is obviously quite volatile, so you should be sure to do your due diligence and weigh out the risks before putting any money on the line.[[tagnumber 2]]