BCGI

[David Randolph]

That news isn't new, everybody in the stock already knows that. That's the reason why BCGI came down from $5 to $1.5. You can't let a profit turn into a loss. My advice is for you to sell BCGI at the open and forget about it. Soon you'll replace BCGI with a stock on fire and make a lot more than you've lost on BCGI. Sell the losers so you can buy winners. Fear your losses grow more, not hope they will disappear. Only you can stop you from losing more.

[puerz]

bcgi is up right now, trading at 1.90 in early morning action. only up 1 cent, but on the news things look better for the open. i bought yesterday at 1.80 but i must hold until Monday, i bought with unsettled funds. hope it stays up.  good luck today all

[puerz]

bcgi is back on the move. climbing nicely

[puerz]

bcgi is up about 30% since Thursday. should i sell or hold. i see it is not on your list anymore. i got in at 1.82

[David Randolph]

I would try to sell around $2.50. That was my initial price target but I was shacked out of the stock.

Good trade, let me congratulate you 

[puerz]

Thank you for the pick, you have a great system. I am doing better with your info than anything I have ever paid for. I was almost done with the market. I have had huge gains with your info. You are doing a great job.

Thank You

[David Randolph]

Thanks puerz, but it's not me, it's you. You're thinking right now, letting your profits run and cutting losses short.

[eagerlearner]

update on the trial
http://biz.yahoo.com/prnews/050620/nym243.html?.v=7

any comments?

thanks!

[kkunitak]

Seems like it would be a positive b/c we all know a settlement will cause a huge jump in bcgi stock price, and now they have another 3 weeks to reach a settlement before the judge decides. Should be interesting tomorrow.

[eagerlearner]

thought it might be interesting to bring this back up as the settlement deadline is Jul 14.
news from yesterday says BCGI stages European and Asian expansiton
http://biz.yahoo.com/bizj/050711/1131772.html?.v=1

it looks like a hint that there will be a settlement. but is it too big a hint?  what do u think?
it has been on slow climbup since last friday, but no explosive volume. guess the market is still not sure where its going.
i got stopped out at 2.05 when it went below 2 last week.
within 2 days it will be a big mover, who knows up or down ,lol.
any speculation anyone?

good luck to you

[Michael]

Hi Eagerlearner,

There might be a settlement. My problem is however that BCGI seems to head for bankruptcy with or without a settlement. All their big clients are in the process of moving to in house solutions (operators don't want like uncertainty and to be charge for violating patents!!!). BCGI will have to expand outside US but what are the odds? They will be stripped of money and all foreign operators already have in house solutions (outsourcing of prepaid billing is a US idea)

So if there is a settlement you will have a nice spike in the share price and.....

I would use that spike to sell if I had any shares....

[eliteG]

totally agree with Michael... I think this one needs to be observed, there are many plays out there. 

[eagerlearner]

wish i held on to my shares a little bit longer. 
company potential went down, but looks like the market is giving positive reaction from any news from the courtroom.

[David Randolph]

BCGI is much lower now than when I've traded it the last time. I see a technical bullish signal on the chart, looking like a double bottom in the making.

We must remember insiders were heavy buyers in June, about 100% higher than where the stock is trading now. And they persist on buying, not just 1 or 2, but I get a list of more than 20 different insider buying stocks at a price which is higher than the current market price. They bought just before these news hit the wires:

«Boston Communications' shares plunge on judge's ruling (BCGI) By Michael Baron
NEW YORK (MarketWatch) -- Shares of Boston Communications (BCGI) plummeted 45% to 94 cents on Friday after a federal judge upheld a $128 million judgment against the Bedford, Mass., provider of wireless communications-related products and services in a patent infringement lawsuit with Freedom Wireless. The company said it plans to appeal the judge's ruling.»

It seems all the bad news is out. We also have this info from the company:

«Today's judgment by U.S. District Court Judge Edward Harrington leaves standing a $128 million verdict against bcgi and a number of its current or former carrier customers (Cingular Wireless LLC, AT&T Wireless Services, CMT Partners and Western Wireless Corp.) rendered by a jury on May 20, 2005. Today's rulings also included the Court's denial of the Company's motion urging the Court to reduce the amount of damages the jury awarded, or to grant a new trial on damages based on newly discovered evidence. The size of the judgment is more than bcgi's total current assets, and more than all of the revenue bcgi has ever received from providing the alleged infringing services to the defendant carriers in the case.

"We are disappointed by the judge's decisions to allow the verdict to stand and not to reduce the damages," said E.Y. Snowden, President and CEO of bcgi. "Our fight is far from over, and we look forward to bringing our appeal to the U.S. Court of Appeals for the Federal Circuit, which has nationwide jurisdiction over patent issues and is especially skilled at reviewing complex patent cases. We do not believe that we infringed Freedom Wireless' patents or that $128 million bears any relationship to a reasonable royalty that bcgi would have paid for a license to the patent rights. We hope the decision on appeal will be favorable, and we will continue to vigorously defend our technology."

While the appeal is pending, bcgi will be required to provide adequate security, via an appeal bond or otherwise. Cingular, bcgi's customer and largest co-defendant, has contractually agreed to provide security toward the amount of any appeal bond that is in excess of $41 million and for which bcgi and Cingular are jointly liable. Under that agreement, announced on July 27, 2005, bcgi has placed $41 million in escrow to be used for security, and in exchange, Cingular has agreed to provide sufficient additional funds to stay the execution of the judgment. This agreement is expected to allow bcgi to proceed with an appeal without forcing the Company to seek protection in bankruptcy while the appeal is pending but does not alter bcgi's obligation to indemnify Cingular. The agreement specifies that Cingular is required to post a bond only for the portion of the judgment exceeding $41 million that is for joint infringement. If the Court enhances the damages against bcgi for willfulness, Cingular would not be liable for such enhanced damages and therefore that amount would not be secured by Cingular.»

Also this: bcgi Introduces Comprehensive Suite of Services for MVNOs; Offers Complementary Suite of Products, Consulting and Alliances in a Single Package Optimized for Emerging Mobile Virtual Network Operators

The company is fighting with all it can to prevent bankruptcy and the market cap is just $19.58M. Who am I to judge, but $128M seems to be very exaggerated considering what this company has sold of its products.

Well, I don't know much about the court outcome or if the company will survive this, what I know is this:

1) Insiders have been buying, they bought shares much higher than the current price and they continue to buy.
2) I see a bullish technical signal on the chart.

That's enough for a speculative buy for the 3 Stocks on Fire Portfolio.

Here are the charts:

[David Randolph]

I'm backing off, it's too risky. I will look for some other opportunities the following trading days, I don't need to be active everyday and bottom fishing isn't my style.

But I'm finding it harder to get nice technical setups, stocks are generally turning bearish.