{"id":5002,"date":"2014-10-25T09:15:33","date_gmt":"2014-10-25T09:15:33","guid":{"rendered":"\/?p=5002"},"modified":"2014-10-25T09:16:02","modified_gmt":"2014-10-25T09:16:02","slug":"bluefire-renewables-inc-otcmktsbfre-secures-a-major-contract-stock-spikes","status":"publish","type":"post","link":"\/articles\/bluefire-renewables-inc-otcmktsbfre-secures-a-major-contract-stock-spikes\/","title":{"rendered":"BlueFire Renewables Inc (OTCMKTS:BFRE) Secures a Major Contract, Stock Spikes"},"content":{"rendered":"\n<p><img loading=\"lazy\" decoding=\"async\" style=\"float: right;\" src=\"\/\/s.hotstocked.com\/hotstocked.com\/repository\/articles\/88\/88354\/bfre_6m_450x350.png\" border=\"0\" width=\"400\" height=\"311\" \/>Between October 3, 2013 and October 8, 2014, BlueFire Renewables Inc (OTCMKTS:<a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a>) issued no press releases whatsoever. Generally speaking, penny stock investors don&#8217;t like companies that keep things quiet for so long and, not surprisingly, over the last twelve months, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> has been experiencing some major liquidity issues.<\/p>\n<p>Volumes have been virtually non-existent and once it settled deep in the double-zero territory, the ticker refused to move much. The truth is, once you take a look at the latest 10-Q, you&#8217;ll see that there wasn&#8217;t really anything that could entice people to jump in.<\/p>\n<p>Here&#8217;s what <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> recorded at the end of the second quarter of 2014:<\/p>\n<ul>\n<li>cash: $41 thousand<\/li>\n<li>current assets: $241 thousand<\/li>\n<li>current liabilities: $1.8 million<\/li>\n<li>quarterly revenues: $452 thousand<\/li>\n<li>quarterly net income: $87 thousand <\/li>\n<\/ul>\n<p>As you can see, the company&#8217;s financial situation is not perfect. Indeed, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> managed to end the quarter with a positive bottom line, but a closer inspection reveals that the profits have dropped by a whopping <strong>65% year over year<\/strong>. Revenues come mainly from reimbursements from the Department of Energy and they too have experienced a decline when compared to the ones recorded during the corresponding period of 2013. The cash reserves are dismal and there&#8217;s a huge working capital deficit.<\/p>\n<p>The problem lies with the fact that several years ago, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> set themselves an ambitious task &#8211; they set out to build a state-of-the-art ethanol refinery. The site was picked, the engineering plans were put together, and operations commenced. The Department of Energy liked the idea and for a couple of years, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> was receiving some grants. Unfortunately, the company missed a few deadlines and in December 2013, the DOE stopped the grants. The plant is still not ready and, as you can see, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> don&#8217;t really have the money to get it done. They might have solved this problem, though.<\/p>\n<p>About an hour before yesterday&#8217;s opening bell, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> announced that they have signed a major financing agreement with The Export Import Bank of China who, apparently, are willing to provide &ldquo;<strong>up to $270 million<\/strong>&rdquo; towards the completion of the Fulton Project. The news is so big that even Bloomberg, who normally aren&#8217;t that interested in penny stock companies, picked it up.<\/p>\n<p>Predictably, investors were also mightily excited. In a matter of six and a half hours, they traded more than 7.6 million shares and racked up a dollar volume of nearly $230 thousand. <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> surged in the right direction and added a whopping 307% which means that it&#8217;s now sitting above the $0.04 per share mark <strong>for the first time since May 2013<\/strong>.<\/p>\n<p>We&#8217;ve yet to see details of the deal in an 8-K form issued by the company, but it would appear that investors aren&#8217;t too bothered about this fact. They seem pretty convinced that with the Chinese financial backing, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> will manage to complete the ethanol plant and that it will start generating some serious revenues and profits. Of course, they have every right to be hopeful, but that doesn&#8217;t mean that a potential investment is risk-free.<\/p>\n<p>In fact, once you take a closer look at the SEC filings, you&#8217;ll see that the company is burdened with quite a lot of <strong>toxic debt<\/strong> and this, in turn, is starting to put pressure on the share structure. If you read through the latest 10-K, you&#8217;ll see that between December 2012 and December 2013, the company was forced to issue <strong>more than 17 million shares as a conversion of notes at rates ranging from $0.005 to $0.07 per share<\/strong>. That, however, is nothing compared to the exuberant printing after the end of last year. Between November 2013 and August 2014, the O\/S count grew <strong>from under 67 million to over 181 million<\/strong>. Due to the discounts in the convertible notes&#8217; terms, the conversion rates are getting lower and lower. The subsequent events section of the latest 10-Q, for example, tells us that between June 30 and August 11, the company issued a whopping <strong>24,537,990 shares of common stock at less than $0.002 per share<\/strong>.<\/p>\n<p>If the dilution continues, <strong><a href=\"http:\/\/www.thehotpennystocks.com\/Stock-Quotes\/?stock=BFRE\">BFRE<\/a><\/strong> will be put under a lot of strain in the future. You need to decide for yourself whether the financing deal is enough to help the stock withstand it.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Between October 3, 2013 and October 8, 2014, BlueFire Renewables Inc (OTCMKTS:BFRE) issued no press releases whatsoever. Generally speaking, penny stock investors don&#8217;t like companies that keep things quiet for so long and, not&#46;&#46;&#46;<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1473],"class_list":["post-5002","post","type-post","status-publish","format-standard","hentry","category-news","tag-bfre"],"_links":{"self":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/comments?post=5002"}],"version-history":[{"count":0,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/posts\/5002\/revisions"}],"wp:attachment":[{"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/media?parent=5002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/categories?post=5002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/articles.thehotpennystocks.com\/articles\/wp-json\/wp\/v2\/tags?post=5002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}