BGNN (B GREEN INNOVATIONS INC) .0011 - Next Big Gainer?
BGNN (B Green Innovations Inc)- This stock has been on the move since we recently alerted it last week to our VIP members at .0007 cents. The stock is garnering major interest among traders in the investment community and we expect a breakout shortly. There has been strong bid support as of late and we expect the stock to trend higher. This is a company which has real products sold across stores across Usa, Canada and Hawaii.
BGNN Due Diligence Report
Company Contact
Headquarters:750 HIGHWAY 34
MATAWAN, NJ 7747
Web Address: http://www.bgreeninnovations.com
B Green Innovations, Inc. is focused on becoming a green technology company, focused on acquiring and identifying promising technologies that address environmental issues. The Company operates in two segments: green technology products, and support of Interactive Voice Response (IVR) software. As of December 31, 2010, it released its new 100% Degradable / Biodegradable Compactor Bags. These bags include oxo-biodegradable additive using the technology that supports the 3 R's of Packaging Reduce, Reuse, Recycle and provides a fourth R, Remove. It continues to support the interactive voice response (IVR) software. Its Interactive Voice Response line was designed to read information from and write information to, databases, as well as to query databases and return information.
Why we like this stock
This reason I like this stock is that its a revenue producing triple zero stock that is very undervalued for the last couple of months this stock has slowly been garnering interest from the chartit shows a slow and steady growth and yesterday the stock gave a minor pull back for entry. The company is an OTCQB stock which is current tier with its filings. In the last 10Q, This is how the revenues looked:
Results of Operations
Total sales increased $67,114 (161.3%) for the three months ended March 31, 2012 to $108,735 as compared to $41,621 for the same periods in the prior year. This increase is due to the increase in sales of our "green" products as a result of an increase in volume from new customers.
Gross profit increased
B Green Innovations May 15, 2012 Quarterly Report
Total Sales Increase 161%, Gross profit increased 184.3%
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8508472
This number is huge for a stock trading at these levels. With that said there was also an article which caught my eye. This article put shed some light on the potential of this company that is already over achieving with its revenue. This is an article written on May 21, 2012 not too long ago by alphaseek a well know financial newsletter.
Alpha seek Article:
B Green Innovations: Tremendous Growth Platform Setting
There are over 5,000 stocks listed on just the NYSE and Nasdaq making it easy for analysts and investors to overlook a few. It is even easier to overlook stocks trading on the OTCBB as some investors just simply stay away from them because of their bulletin board status. This leaves a lot of undiscovered gems for investors willing to do the careful research needed to scour the OTCBB. B Green Innovations (BGNN.OB), a green company starting to get noticed in the marketplace, is one of those gems.
The B Green Innovations "Go Green" mission from its inception is to create a "Green" company for the development of solutions to eliminate waste from the world's environment. B Green offers consumers a realistic and necessary solution to the problem of waste around the world. BGNN's first technology was to create new products from recycled tire rubber. Recently, the company released its new 100% Degradable/Biodegradable Compactor Bags as the demand for biodegradable bags is on a growth trajectory.
In the recent months, more retailers have been switching to biodegradable plastic bags in their stores, and many manufacturers are packaging their products using degradable / biodegradable plastics. The cost of changing from regular plastic bags to B Green oxo-biodegradable plastic bags is negligible, and depending on the type of packaging application, can cost considerably less than non-degradable / biodegradable plastics. Many large companies are incorporating degradable plastic packaging including the Body Shop, Coca-Cola, Quantis and Butchart Gardens.
The company's financials are proof of the pick-up in product traction. Just this week, B Green released strong Q1 results. Sales increased a whopping 161.3% y/y to $108,735 year due to the increase in sales of its "green" products as a result of an increase in volume from new customers. Gross profit jumped 184.3% y/y to $85,172 as a result the increased volume of the "green" products and the cost savings by changing its out-sourced manufacturer. The top line growth was met by margin expansion as gross margin came in at 78% compared to 72% a year ago. The bottom lined improved significantly as the compared reported a loss of just $15k versus a loss of $128k a year ago.
Opportunity In Tires
According to the EPA's Scrap Tire Cleanup Guidebook, released June 8, 2006, large scrap tire stockpiles present a risk to human health and the environment for several reasons. They provide an ideal breeding ground for disease-carrying mosquitoes and rodents. Stockpiles can also catch on fire as a result of lightning strikes, equipment malfunctions or arson. State, federal and local agencies have spent tens of millions of dollars over the past few decades responding to tire fires. Approximately 290 million automobile and truck used tires are discarded by Americans every year.
Since 1989, when only 10% of scrap tires were recycled or reused, the United States significantly increased its tire reclamation efforts to slightly more than 80%. However, the 55 million tires (19 percent) not reclaimed are being thrown into landfills or, even worse, disposed of illegally on roadsides and properties around the country.
What is the economic opportunity? It's significant. According to the report, "State, federal and local agencies have spent tens of millions of dollars over the past several decades in responding to tire fires and as a general rule it is five to ten times more expensive to remediate a fire site than it is to remove the tires before they catch fire."
Opportunity in Plastics
Plastics play an important role in almost every aspect of our lives. Plastics are used to manufacture everyday products such as beverage containers, cleaning product and other household items, and water bottles. The widespread use of this valuable material demands proper management of used plastics, as they have become a larger part of the municipal solid waste (MSW) stream in recent decades.
According to the EPA In 2007, the United States generated almost 14 million tons of plastics in the MSW stream as containers and packaging, almost 7 million tons as nondurable goods, and about 10 million tons as durable goods. The total amount of plastics in MSW-almost 31 million tons-represented 12.1 percent of total MSW generation in 2007. The amount of plastics generation in MSW has increased from less than 1% in 1960 to 12.1% in 2007. Plastics are a rapidly growing segment of the MSW stream. The largest category of plastics are found in containers and packaging (e.g., soft drink bottles, lids, shampoo bottles), but they also are found in durable (e.g., appliances, furniture) and nondurable goods (e.g., diapers, trash bags, cups and utensils, medical devices).
Consumers' Appetite For Green Products
The number of Americans seeking green products stands at approximately 30 million today and that number is increasing. U.S. consumers continue to demonstrate a growing appetite for natural and organic products, as manufacturers and retailers expand into new and nontraditional areas and increase their offerings. Total sales for the natural and organic industry increased by 56% percent between 2002 and 2006. The opportunity exists to boldly mass market biodegradable plastic products to the consumers seeking green products.
Todd Woody of the Green Wombat reported, since April 2007, Wal-Mart has tracked purchases of five eco-oriented products to measure its 180 million customers' attitudes toward buying green products. The products were compact fluorescent light bulbs, organic milk, concentrated or reduced-packaging liquid laundry detergents, extended-life paper products and organic baby food. Wal-Mart found approximately 18% of its customers are making green purchases at its stores.
According to the AARP, 40 million baby boomers have gone green. A study by Accenture done in October 2007 found that two-thirds of consumers would pay a premium for green products.
Innovative Products
B Green's first technology was to create new products from recycled tire rubber. EcoPod and VibeAway address important environmental concerns and problems facing the planet today. EcoPod and VibeAway are 100% recycled rubber-based products that can be utilized as support pads under any units that vibrate and make noise, including washing machines, dryers, compressors, commercial condensers, and many other units that advantageously benefit from sound and vibration control.
Recently, the company released its new 100% degradable/biodegradable compactor bags. These bags include oxo-biodegradable additive using the latest technology that supports the 3 R's of Packaging: "Reduce", "Reuse", "Recycle" and provides a fourth R, "Remove". Independent Scientific Testing show that plastics incorporated with an additive called Renatura will degrade and then fully biodegrade, without leaving behind harmful residues in the soil.
These oxo-biodegradable plastic products are scientifically proven to be non-toxic and are FDA compliant, meaning they are safe for food packaging applications and have been awarded approved food film contact 'no migration' status. Regular plastic bags can take up to 100 years to break down causing plastic pollution and harm to both domestic and wild life. Standard plastics are filling our landfills and greatly impacting our planet. Plastics incorporating this additive in the presence of oxygen disappear when exposed to UV light or thermal heat. Our product is designed to allow plastics to degrade like a leaf, slowly yielding CO2 (which through photosynthesis becomes oxygen), water, bio-waste, and mineral salts that condition the soil in the process.
The company will also continue to support the Interactive Voice Response ("IVR"), software that was developed by iVoice, a predecessor company. The company's Interactive Voice Response line was designed to read information from and write information to, databases, as well as to query databases and return information. B Green currently has no plans to engage in future research and development, to launch any additional versions of the IVR software or other products, or to continue to market this product.
http://seekingalpha.com/instablog/114325-alex-shadunsky/644831-b-green-innovations-tremendous-growth-platform-setting-company-on-course-towards-profitability
Key Points
-Increased revenue and assets as per last 10Q
-Leading seller of Tire products , products found in Walmart
WMT (Walmart) 68.39 the strongest retail company in North America
- Low share structure and thin Level 2, potential of a slow and steady chart passed its 52 week high of just .0014 once this passes could see a target .0055-.01 cents
Share Structure
Market Value1
$419,072
a/o Jun 20, 2012
Shares Outstanding
698,452,726
a/o May 10, 2012
