Blue Earth Inc. (OTCMKTS:BBLU) Halts Its Descent
Blue Earth Inc. (OTCMKTS:BBLU) has been having a tough couple of months lately. The company has been in decline since its mid-march climb, slowly going deeper and deeper in the red until yesterday, when it managed trecover 4.5% in a single session.
Providing alternative and/or renewable energy and energy efficiency solutions for small and medium sized industrial facilities is not easy. Needless to say, going green and improving energy efficiency involves some cutting edge technology, and it’s a niche with a lot of competition. Still, BBLU seems to be progressing slowly, but is it moving in the right direction?
A look at BBLU‘s latest financial report – the 10-Q covering the period ended March 31, reveals the company had:
- Cash – $4.9 million
- Total Current Assets – $17.5 million
- Total Current Liabilities – $6.9 million
- Quarterly Revenues – $3.2 million
- Net Loss – 5.6 million
Strictly speaking, these numbers aren’t terrible, especially by the standards of the OTC. The report clearly stated that the company had $17.5 million in current assets, nearly $5 million of which – in cash on hand. There’s a lot that can be achieved with such amounts of money and proper management.
However, if said numbers are to be taken into perspective, it turns out that, while the company’s revenues are up by one third in the last quarter, its cash on hand has decreased drastically QoQ. Moreover, BBLU‘s net loss is almost triple what it was in the previous quarter – which is not reassuring, to say the least.
On the bright side, the company doesn’t seem to be suffering from toxic funding. It does owe a lot of money, but none of its debt seems to be converted into common stock, as is common practice among many companies on the OTC. Sadly, the fact that BBLU is not dumping dilution on its investor’s heads at every opportunity doesn’t necessarily mean that it is a sound buy.
As usual, due diligence is in order, before committing to any penny stock.
Another 2$ OTC company that has the aspiration of hitting the $3 mark and is currently struggling with the market to do so is WMI HOLDINGS (OTCMKTS:WMIH), who were up by 3.27% yesterday, but have opened with a significant gap down and are going red in today’s session.
