Blue Earth Inc (OTCMKTS:BBLU) Sliding Down

It’s been eerily quiet around Blue Earth Inc (OTCMKTS:BBLU) in the past couple of days. There have been no new press releases, the last emails that SmallCapStockPlays sent out are dated June 12 and even when we check out the message boards, they don’t seem to be very active.

That wasn’t the case a couple of weeks ago. As we wrote in some of our previous there was quite a lot of commotion and significant volume brought BBLU back to life. So much so, in fact, that they managed to records six consecutive trading sessions between June 5 and June 12 all ending with gains ranging from 2% to 15%. This means that the ticker surged past the $3 per share mark like it’s not there, but just when people started to perceive BBLU as a company with real potential, something happened and it started its descend.

Yesterday marked the third red session in a row and this means that right now instead of BBLU‘s chart looking a lot like the one for Petrosonic Energy Inc (OTCMKTS:PSON), it resembles the one of Northumberland Resources Inc (OTCMKTS:NHUR) much more closely. What are the reasons for this?

Well, there could be a number of factors. For one, the lack of news around the company might have suppressed the interest of investors somewhat. We know that, especially in Pennyland, tickers often tend to move fueled by exciting new announcements of new projects, products, acquisitions etc. That said, while it wasn’t as significant as the ones we saw last week, yesterday’s volume was still well above the average one for the last three months. A lot of trading, however, doesn’t necessarily mean that the price should go down. On the contrary, often when tickers make huge jumps in the right direction, we see a lot of shares changing their ownership. So is there something else that might be pushing the price down?

Well, as we wrote in our previous articles, financially speaking, BBLU are not doing brilliantly. Here are the figures as found in the latest 10-Q once again:

• cash: $458 thousand
• current assets: $6.6 million
• current liabilities: $8 million
• accumulated deficit: $36 million
• quarterly revenue: $2.8 million
• quarterly net loss: $1.8 million

In the interest of fairness, we have to point out that not many penny stocks can boast about making $2.8 million in revenues in just three months, but the losses are quite disturbing and there’s quite a lot of work to be done if the management team want to get rid of them.

Instead of focusing on this, however, they have had some other things on their mind. We mentioned in some of our previous articles that BBLU themselves paid SmallCapStockPlays (SCPS) for the awareness campaign that has been going on for quite a while now. They did it in the form of stock which means that SCSP are bound to sell it at one point or another when they decide that they want to make a profit (if they haven’t already). The same goes for other shareholders that might want out and as you probably know, if the market is flooded with a lot of stock, the price will inevitably take a plunge. Unfortunately, as of right now, there can be no assurance that BBLU have what it takes to recover from a sudden drop.

That is why, despite the promising-looking revenues from the previous quarters, we would advise you to be careful when weighing the risks of a potential investment in BBLU.