The Dean’s Thoughts on $BSTK Today
October 26th, 2009 at 9:43 am Posted by
Last week, $BSTK seemed to gain momentum into Friday’s afternoon news of the upcoming delivery of new products, trading 319,000 in volume on Thursday and 1,600,400 shares on Friday.
In a short period of time, $BSTK jumped to $0.49 from an open of $0.26, closing up more than 50% by the end of the trading day.
This morning’s news of a full-line distribution agreement through Amazon.com should have been tremendous news for $BSTK but The Dean believes that an investment report released by GlobalEquityReport.com an hour and a half earlier may have caused investors to become nervous about the legitimacy of $BSTK.
After Friday’s profitable run, many investors could have anticipated more gains, or more news, today, while others could have clearly intended to cash out on profits from Friday’s increase in share value. But, after this morning’s activity, The Dean believes many nervous and hesitant shareholders sold off shares and profit taking has brought $BSTK back down to it’s Friday open of $0.26.
At the same time, however, The Dean believes that the news of the Amazon.com agreement and the largest catalog order to date from Herrington’s could bring new investors into $BSTK, especially at its current attractive price.
After the past few days, what The Dean does know is that $BSTK has several new products that will begin shipping in the next couple of weeks and their products are now available through their website, Amazon.com, Frontgate, Herrington, Helios Living, 28 BJ’s Wholesale Clubs and the company recently received favorable review in Guns & Ammunition for Law Enforcement magazine.
Furthermore, $BSTK has made forward strides to become profitable this quarter and could very well see record revenues during the upcoming holiday season, as indicated by $BSTK President Glenn Bushee in today’s news.
Dean,
it looks like that report should have been more positive for Brite-Strike.
hard to explain why the drop down to .20 today…
Amazon resells anybody almost like ebaY now – so don’t be impressed by their distribution. Herrington’s impressive since their print catalog real estate is obviously limited.
On this down market day the BSTK “cashouts” are winning over the “anticipators”. So I’d buy this stock again in the teens in time for the next Holiday season hype cycle.
@pack now this is the type of analysis The Dean likes to see. Honest, thought-provoking and most importantly you are now validating your opinions.
However, Amazon.com does not resell “anybody” and they are not like ebay. For the most part Amazon.com acts as an intermediary and does not hold inventory of the products on their site (like ebay). But with Brite-Strike, Amazon.com is actually warehousing their products.
Dean – if Amazon is doing BSTK’s fulfillment, that increases BSTK’s distribution costs, and means that BSTK is obviously not well set up to distribute product efficiently from orders taken on their own web sight. That’s nothing impressive about BSTK, rather it illustrates why AMZN’s stock is hitting new highs…
you could certainly attribute AMZN’s success to the fact that they provide better customer service and more convenience than Best Buy or any other retailers that have been understaffed for the past two years. businessweek just did a write up about that.