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BRLC - Will go bankrupt or have a large run up very soon

I swore off this company, but they are so cheap that I could not help buy snap up a few shares.

First, BRLC have a long history of troubles.  Their lender could force them into bankruptcy in the upcoming weeks, or they could continue to work with BRLC to save the company.  The company is a billion dollar company that actually makes a profit selling lcd tv's.  They're marketed under the name "Olevia". 

Well, this is a very dangerous situation.  But if you feel like sinking $70 in a dangerous situation, you could be looking at a 100%+ return or a bankruptcy within a week or two. The stock is trading at around 70 cents right now. 

Historically, I have ABSOLUTELY NO REASON to trust these guys.  But still, if the news is good, we will be looking at an easy double (I think...these guys always manage to screw things up somehow, trust me, ask any one who has owned BRLC stock, and they will vouch for that.)

The "easy double" or "100% run up" is pure speculation on my part. 

Edited by DannyUpshaw at 10/07/08 at 03:20 PM
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Posted by DannyUpshaw on 02/27/08 at 07:41 AM

Tag It | 1 user tagged it: BRLC

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Haymore

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Haymore

Danny, you should read your post carefully BEFORE you pull the trigger.  Which ever way it goes you are going to have more emotional strain than a possible double is worth.  For 70 bucks you could have a nice dinner date with your wife and pleasant memories for a long time.

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DannyUpshaw

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Haymore, good point, but I don't feel much strain in this trade.  I've got sub-$200 in BRLC, which isn't much money, and I made a small investment in them after doing much research.  My post is over simplified.  I've studied this company for months and months.  Their main problem is that they were having trouble keeping up with demand and went into debt to finance growth.  Now, the loan is due, and they haven't paid.  They had trouble collecting their accounts receivable from China, and that hurt their ability to pay back the loan.  But their lender has a history of helping companies in need, so I figured the small risk was worth it.  They may not survive this situation, but don't think that I went into this one blind or overly emotional. 

Thanks for the advice though.  This is a situation where being more prudent would be the most wise course of action...but I just have trouble believing that a billion dollar company with huge demand for product, that actually makes money, is going to go belly up.  I think they will survive (famous last words...eh?)

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WallStreetKing

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WallStreetKing

Looked at BRLC isn't all bad. might take a few quarters to straighten out. good luck

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DannyUpshaw

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I've bought a couple of options for January 2010 at a $2.50 strike price.  Maybe by then things will be better.