BOURQUE INDTS INC (PINK:BORK) Display Some Quick Reactions
The commotion around BOURQUE INDTS INC (PINK:BORK) has been immense recently. The price has been going up, then down, then back up again, and it would seem that the management team (or what’s left of it) are quite desperate to keep the company afloat. Will they be able to do it?
Let’s do a quick recap of the events that surrounded BORK in the last week or so. First, their price jumped by a massive 50% after some news came up stating that they have registered a sale which would bring them over $250 thousand in revenue in the coming month. We noticed the rise and we expressed our doubts that this quarter of a million dollars will make too much of a difference because of the dreadful financial state that BORK are in right now. Then we found out that the company CEO has some trouble with the law and he is faced with a prison sentence for driving under the influence. Sure enough, he was found guilty and in March he is about to go to a hearing where he is supposed to receive his sentence. This resulted in a catastrophic 70% drop in the price in a single trading session. BORK were quick to react, however, and they immediately came up with some news stating that there has been a reorganization and there are new Directors as well as a new CEO. The price went back up and closed the last two sessions in the green. The saga continues…
We’re not sure if the newly appointed people in the management team know what they are dealing with, but one thing is for sure, it will be anything but easy to get the company back on its feet. They have to be extremely skilled and they will need to have tonnes of experience if they want to get BORK out of the financial hole that it’s in right now. Can they do it? Well, the information that BORK have published sounds impressive, however, we’re not too keen on believing press-releases, so we dug deep to see what we could find about the new and not-so-new kids on the block.
Let’s start with the new CEO – Sean Floyd. He was, in fact, a vice president of Mr. John Bourque up until now. As you’d expect, the things that are said about him and his management skills sound all well and good, but the fact remains that he was part of the company when it was dragged into debt and liabilities, which means that he is, at least partly, responsible. Of course that’s not the only problem. The short resume available in the press-release claims that he was part of a marketing and photography agency that allegedly is extremely successful. His LinkedIn profile, however, shows no sign of him being involved in any such company. Instead he is listed as the CEO of a company called ACT International, Inc. Naturally, we had to check this venture as well and we managed to find that their registration with SEC was revoked due to refusal to file their reports on time.
While Mr. Floyd has been around for some years now and knows what he’s dealing with, the director that has already accepted BORK‘s invitation to join the board, Mr. Matthew Schissler has never been involved with the company so far. He is quoted as having tonnes of experience on management positions and his previous venture, Cord Blood America Inc. (OTC:CBAI), is also mentioned. Now, we’re not sure what the people who wrote the press-release have in mind when they say that CBAI is a successful company, but apparently some people beg to differ, as this item on ripoffreport.com shows. Of course, we are in no way sure, that all the allegations in the report are 100% true, but it’s evident from the chart on the right that the price of CBAI has been going down for quite a while and it will be hard to stop the Felix Baumgartner-style free fall.
On the whole, it’s way too early to tell if BORK will manage to survive all the turmoil it’s been going through recently, but it will be a safe thing to say that the odds are against them.
