Blue Earth, Inc. (OTCMKTS:BBLU) Boosted by Solar Power Project Agreement
Three days may be a charm, though buying volumes remain tentative for Blue Earth, Inc. (OTCMKTS:BBLU) as it head up to $3.50, a nice round border, if it is achieved. BBLU added 1.76% on the first day of trading after the long Labor Day weekend, on volumes of about $327,000.
The latest bid of BBLU for boosting its business is an agreement, not quite a contract, to build a solar power plant of 18mW in the next 20 months. Construction is planned for the last quarter of 2013- a period that is almost upon us, so BBLU should show results soon on a total of nine projects in California. BBLU projects a revenue of $36 million from this project, and pledged to invest $6.5 million of its funds into solar power.
And here is the rub- BBLU should issue common stock to boost its investment plants, and issue it at below-market prices, $3 per share. BBLU has planned to issue more than 1.8 million shares, not yet reaching the threshold for serious dilution of its 46 million shares outstanding. But BBLU has a free float of around 8 million shares, and with daily volumes hardly around 250 K shares, sudden rapid trading may change the landscape significantly.
We still don’t know what would happen once those $3 shares start to hit the market that is heated up to a higher level. BBLU is boosted by a promotion expanding to a budget of $80,000 and 37 emails total- the last one landing a few days back.
Another company that had big plans to enter the carbon trading market seems to have moved away from its days of fame. Bluforest Inc. (OTCMKTS:BLUF) has sunk deeper, to 75 cents, from a recent peak above $2, caused, of course, by paid promoters. At first, BLUF may have fooled investors that forest properties could generate revenues from selling carbon offsets, but the fallout of the promotion came faster than business success.
For BLUF, not even the recent news that European insurer Allianz SE would be buying carbon offsets has managed to prop up the falling stock.
There are few penny stocks that manage to support such relatively high levels for long enough. Currently, ImageWare Systems, Inc. (OTCMKTS:IWSY) comes close at $2.23, but the company was boosted by its own reports, and did not rely on paid pumpers. But often the promises of useful technologies are just that, promises that never make it to market.
In case you still believe BBLU could be worth something, it is best to keep in mind all the red flags, and stay away from buying at levels that may be undermined by the $3 price of the proposed new share issue.
