Sunday, September 18, 2005
Bonus America (BAWC) Q2
Amount due from related party increased, but loan from a director was mostly paid down. Amount due to related party is up roughly as much as the amount due from related party.
AR increased about 30+% from Q1.
Total equity is up about $74K.
The advertising and list rental income, $623K is down about 5% from Q1.
Cost of sales is up to $166K from $47K.
SG&A is way down to $280K from $528K in Q1.
Net income of $71K
about 20 million shares diluted.
Cash flow from ops $401K (was $346K in Q1), mostly aided by deprec ($218K), decrease in inventory ($113K). Q1 was mostly aided by decrease in AR.
Estimate of real free cash flow is around $250K in first half or about 1.25 cents per share.
Recent stock price is 10 cents. So BonusAmerica is probably worth digging into. Let's see what we find...
There's this odd warning about the previous holding company which sold off Bonus America. Strange things are associated with www.nationalrewardcenter.com
same goes for iwatchclub.com which is also associated with Stanford International Holding Company. There's another one right on the www.bonusamerica.com domain.
This one doesn't pass the smell test, especially given their line of business. In Dec 2001, I learned the hard way about investing in something that I knew was shady but would clearly be profitable nonetheless. People unscrupulous to their customers can also be unscrupulous to their investors.