After a slow month, some more great News

A slow and uneventful month as we hold the line at the .65-.75 support level. Not A whole lot going on with the stock. However I did want to update everyone while I had the chance on some recent developments on the company.

Recently Jim Collas stopped by at a small private function; without shareholders to impress, that I was attending. Speaking and listening to him only confirmed my suspicion that the company is in the perfect position despite what we see in the stock price. Jim remains extremely optimistic despite the lull in the stock because he knows what is happening behind the scenes with regards to the company.
Im sure many of you understand that on the small caps (penny stocks), share price has little to do with how the company is performing. In most cases a run up in share price can make one think that the company is doing well, when the company hasnt done anything (in some cases the only thing they have done is fraudulent). What we saw last summer with SCLW was true in the regard that the company hadnt launched its product, yet the stock went from .70 to $2.75+. They hadnt done anything. It was running on anticipation OF Anticipation! Others run on a "PUMP AND DUMP". (If your not familiar with this term, please click on it.) Just to reiterate if SCLW was a pump and dump....we would be sitting under .05 right now....

However this also can be true in the opposite sense, as we have this summer where the company is hitting major accomplishments, yet the stock hasnt caught up. This has to do with many factors, one of the main ones being investors unwillingness to take as many chances in this environment. (The media/Wall Street is telling us how great the stocks are doing, knowing that most of the fundamentals havent changed for the better. Its a false rally. Possibly a "Dead cat bounce" type move.) This would be true of Hedge funds as well. They would rather make another "hot play" than sit on a stock that hasnt started a run yet.

Talking with Jim I got a feeling that something major is just on the horizon. One of the main underwriters was also at the gathering , whom I know, was saying the same thing about the share price, that positive things are happening. I think as the company begins to perform , we are going to see the strong buying come on in force that has been waiting for the right moment. This will spur the run as regular investors clamor in to avoid "missing out". Of Course the short sellers will also show betting on a drop, but that is to be expected....its still a "market". Think of it as Poker game. Big buying doesnt want to show its hand to early and risk loosing ground (on the stock price). As far as time line that I can gather... it still remains end of the year. But I had one individual tell me "it could happen at any time".
Jim is careful not to "cross the line" in information he disseminates however from the buzz I hear outside the company is that big retailers are lining up VERY excited about what BMP offers.
It is my understanding is that the only "hold up" when it comes to major retailers like Amazon signing, is that they want to know the bugs are worked out before going "all in" with time and money. This will open the door to smaller retailers testing the waters (so to speak) as the first full service line comes on. This is happening now with the likes of Artix (not really a small company). I think we will encounter a snow ball effect when this starts to roll. Once one major name comes on, you will see many others lining up. Keep in mind, the company is finally making money (small amount, but now producing revenue).

Every company that has seen how BMP works has been excited. No one has thought it was a waste or wouldnt work! Sure there has been a few negative blogs, but if you read the complaints (especially from parents) they have little idea on how this works and will work for them. They still think it just "allows kids to bombard parents with request".... this could happen if they raise spoiled kids and dont use the resources and parameters put in place, but couldnt be farther from the truth. Once parents understand how to use it, it becomes a tool they can use....even if it is only to let junior pick a gift out for his father on his fathers birthday using a limited budget. I could not tell you how many people I heard 5-6 years ago saying they would "NEVER allow their kids to have a cell phone"...yet due to convenience of calling home or a parent checking in with their teenager, they have changed their mind and now love it. I guarantee this will happen with BMP for the small amount of doubters (who raise the biggest stink.) I have yet to hear a parent, investor, or friend doubt that this is a GREAT product when they fully understand how it works. Not one.

Hope everyone had a great 4th...as things pick up, so will my blog posts. Again let me know if you have any questions.

News on Yahoo Tech

BillMyParents lets kids and parents bond over shopping

I've yet to determine if this idea is genius or nightmare, but I have to give it credit for trying something new.

Put simply, BillMyParents is a startup with the goal of making it easier to let your kids beg you to buy them stuff.

With BillMyParents, little Teddy doesn't need to copy the URL of a product he wants and email it to you, he can virtually purchase the item himself -- contingent on your approval.

The idea: Teddy goes to a website that has BillMyParents enabled, and instead of completing the shopping process normally, he hits a button that sends the item straight to mom or dad. Teddy can offer a justification for why he needs the product, alongside information (automatically filled in) about the price of the item and the store that's selling it.

If the parent approves, the transaction continues. Otherwise, the deal is canceled and the kid gets grounded for wasting dad's time.

I like the idea for two big reasons: It creates a paper trail for the things you buy your children -- so you'll know pretty quickly how much you're really spending on their "needs" -- and it forces the child to justify what he wants, in writing. Rather than letting your kids just whine in a personal audience in front of you, BillMyParents gives you a legitimate outlet to tell them to use to send you a formal request for whatever it is they want, and you'll be able to consider it on your own time. Whining averted.

BillMyParents hopes to partner with merchants to add its button to their shopping sites. But for now, the only place you can use BillMyParents is on the company's own website, where it operates an Amazon affiliate store.

Is this something you would use in your family? Check it out here.

SCLW- Penny Stocks - Reuters Blog

May 18th, 2009

“Don’t look at me, I’m just a kid — bill my parents!”

Posted by: Alexandria Sage

Tags: Shop Talk, Amazon.com, artix, billmyparents, google checkout, payments, paypal, teens, video games

Ah, youth. How free and easy it all seems. Especially after the launch of a new payments system, BillMyParents.

The system geared to teens and tweens — who ideally have good relationships with their hopefully indulgent parents — allows parents to approve purchases coveted by their kids and foot the bill.

The idea of the youth payment system is to capture some of the $40 billion spent by kids who end up shopping at traditional retailers only because without a credit card, they have no way to pay for stuff online, says the company’s chief executive, Jim Collas. Collas is the former chief technology officer for PC maker Gateway.

Whereas consumers have a host of options in online payments systems, including eBay’s PayPal, Google Checkout and Checkout with Amazon, Collas says his system is the most convenient for parents and teens.

Parents pay 50 cents per total transaction after they approve and pay for their kids’ shopping lists that are automatically sent to them via email or text, and merchants pay a percentage to BillMyParents.

Currently, BillMyParents is powered by Amazon.com with Amazon’s shopping cart integrated into the website. Kids can access the entire inventory of the global online retailer.

BillMyParents, which is owned by Socialwise Inc, plans to have up to a dozen more retailers participating within nine months and the ultimate goal is for the BillMyParents payment button to be integrated into the online retailers’ websites.

Besides the retail angle, Collas sees a huge opportunity in the gaming world, which allows kids to buy virtual goods online — a market estimated at over $1 billion — as they play their favorite video games.

Facebook a threat to Google

Socialwise is depending a lot on social networking. The good news is that it is a huge market.

Here is a great article about how: Facebook Can drive more traffic than Google

Here is a part of the article:
Facebook gets over a third of the number of unique visitors that Google does according to comScore. And it continues to grow. Compete shows the lines between Google and Facebook getting closer together: "It seems inevitable that, given Facebook's sheer scale (180 million registered users and counting), it would at some point start referring a lot of users to some sites, but the development is surprising," says AdAge's Michael Learmonth.

If Facebook's growth continues the way it has been, perhaps it should be considered Google's greatest threat (when I say threat, I mean competition) - maybe not in general search, but in terms of where advertisers are spending their money. Certainly in the foreseeable future, people will continue using Google to search, and advertisers will continue to spend money advertising with them (probably even more now that they are doing more targeting), but Facebook also targets, and it's not going to be overlooked. It could put a dent into AdWords revenue.


If Socialwise is the company monetizing Facebook, what do you think that will mean? Simply that Socialwise could be the tip of the advertising spear that starts the revenue motor for social networking. I think this could also paint them as a aquisition target for Google as well. By the way, as of their last filing Google is sitting on $8.5 Billion in cash. Aquiring a company like socialwise would be a cake walk, unless they had to bid against others like Amazon (1.7Billion in cash), or Yahoo ($1.8 Billion) or maybe even because of Maynard Webb...Ebay ($2.8Billion) . Keep in mind, these companies also have credit lines in the billions, so it wouldnt be risking their cash flow.... this is hopefully what would happen.

Feel free to post any questions.