thoughts

Ignore the whole Monoco debarcle for a moment -

25 contracts and their announcements say they are still burning cash for another 2 quarters and to be a going concern they are reliant on oversea's sales (maybe a reference to Monoco but prob just a general statement). Bearing in mind that half of the loss is Depn & Ammort so the cash burn is not as drastic as it looks. BUT in its current state and with existing contracts it DOES NOT make a profit so to say the current SP does not include any upside for Monoco might not be right. Mkt cap is about $40m and it is losing $3-4m a year in cash plus non cash items.

The funds raised over the past 12 months tells the story -

13/9/04 275k shares @ 20c
30/9/04 933k shares @ 20c
8/10/04 1.2m shares @ 20c
15/11/04 5m shares @ 20c
25/1/05 5.4m shares @ 22c
30/6/05 7.275m shares @ 20c
11/9/05 4.4m shares @ 22c

( I think that is accurate from 3B's)

A good thing seems to be that the 2 major directors just kept buying shares - a bad thing was that they seemed most active in the months prior to the June 9 announcement!

I haven't looked to deeply into who is exercising options all the time to provide working capital - it could be that it is people buying on market that are indirectly funding bqt as the options exercised are sold directly into the market.

Now for the Monoco deal - well on other forums there are people saying some huge (good) news is about to drop and here there seems to be the opposite (with detractors) - who knows - I certainly agree that the announcements regarding it have been badly handled but it could also be argued that they have a duty of disclosure if signed contracts exist.

As for the shareholders contacting Monoco - I sympathise with them - I'd be extremely frustrated at the lack of news and to be holding shares in a cash comping company that has a good contract with a company that is basically just air at the moment would make me want to check things out a little to - BUT - the guy who got everyone here to check it out for themselves and encouraged an onslaught should wear the blame - espcially as it looks like Genner now can spin any bad blood with Monoco back onto a small amount of shareholders who upset the apple cart instead of the blame being more fairly put on his hairtrigger announcement policy.

The future -

It looks like a 10-20c stock to me without Monoco - it has been held up by spin doctoring and light contract announcements that should just be recorded in quarterly sales figures. It looks like you have a CEO that has so much direct contact with a forum based group of shareholders he feels pressured to make an announcement if they have ordered the next 3 weeks of stationary.

Monoco deal is worth about $9m in cash if it goes ahead which would be great as it will cover 2-3 years cash burn and give them a chance to write off the ammortisation but the $32m over the next year looks like a margin of maybe 20% looking at their financials so $6m worth - maybe. The good part is that the fixed costs of the company are spread and covered so it will be a nice litle platform to turn into a real company - probably ongoing NPBT of around $3m (after writing off ammortisation in the first year against the $9m upfront) and room to grow. That probably justifies a valuation of $30m - $60m depending on what growth multiple you put on it.

Happy for thoughts to come back on this - I am not saying buy or sell - I have wanted to buy for the last few months but just can't make it all add up so I haven't - looking for the reason to do it though.

Good luck but if this is all it is cracked up to be then buy Monoco shares - that would be the obvious choice if you ask me - Bqt is just a supplier to a good idea it seems.