Readers Respond: BLLN

In "Readers Respond" I do my best to answer readers' questions, but keep in mind that my responses to these questions are my opinions and personal speculation that I have based on my own research and DD.

Also, I will try to respond to a number of requests that I've received via email or comments to the board asking for 'VFC's Take' on stocks that readers have found. While I'll do my best to address as many as I can, please take a few things into into consideration while reading:

- I have not thoroughly researched all of the stocks that I'm about to comment on. I've done the initial DD but my opinions are mostly based on my first impressions of the stock. I'm merely providing VFC's Take, as requested. Use that as a starting point to do your own DD.

- Don't get testy if I don't like your stock. Remember, this is just my initial impression and I take into consideration some variables that other people don't, that's why 'VFC's Take' is not always the mainstream impression.

- I appreciate all the recent feedback, and keep the stock tips coming; this is a great forum for all investors of all levels to share tips and insights. There's a whole lot of stocks out there, but there's only a few gems. Let's keep trying to find those gems.



BLLN.pk: A comment from Noah regarding Brilliant Technologies Corporation:

Hi VFC,
What are your thoughts on BLLN.PK?

Thanks,
Noah

VFC's Take: The real life behind Brilliant Technologies is Qtrax, a first of its kind digital music download service that is both FREE and LEGAL. Right off the bat I can say that the concept behind the business passes my smell test and therefor I believe that BLLN is worth a little bit of 'night on the town' money.

I am, however, a little sceptical of whether the concept can be turned into a highly profitable reality - it's a novel idea, but the reality is that I have to wonder if advertising alone will be able to support the business model. I have to believe that at some point - if Qtrax catches on - the company will have to start charging for some material in order to satisfy shareholders. Additionally, in the US market especially, it's going to be tough to compete with the likes of Apple's iTunes and Amazon's music download service. I'd also be concerned about copycat services competing with Qtrax should the service become successful and profitable; Qtrax will have to try and stay ahead of the curve. All of that being said, let's concentrate on the here and now.

According to the company's press releases, Qtrax is able to provide the downloads for free based on an "innovative ad-supported downloading model that easily directs revenue back to artists and rights holders." Sounds great and I think it is worth being in the stock now because the launch of the service throughout Asia is pending and the recently announced Baidu partnership in China is sure to draw a lot of traffic to the Qtrax site, which will translate into advertising dollars.

There is reason for concern, however. The most recent share count, as presented on the Pink Sheet site, lists BLLN as having over 600 million shares outstanding with 800 million authorized. Those numbers are over two years old, so it's difficult to accurately estimate where the market cap is today. Because of that fact, a buy now is a semi-blind buy - but that also means that some less-risk-tolerant investors will be scared away, meaning those who are in now could see some very significant gains down the road if the company becoms successful and real investors start buying in. Those who bought CSUH for less than five cents know what I'm talking about - with great risk can come great reward. Before that happens, however, BLLN must become current in filings and financials if credibility is to be had and any money other than speculative money is to enter the picture.

As is true with all speculative plays - especially those on the pinks where it's tough to judge the true number of shares - BLLN.pk is a risky play and should not be bought with anything except 'night on the town' money. The concept is sound and if Qtrax catches on, then the advertising dough should start rolling in and this stock could become a big winner.

To reach a dollar the company would need a market cap of about one billion, a number that I can't yet entertain, but I could see a push to about twenty or thirty cents over the short to mid term if the Asian launches take place as scheduled.

Any short term moves will be based on pure speculation, in my opinion, anything more won't come until investors have had a chance to look at financials once Qtrax starts bringing in some revenue.

If you're a speculator who likes this stock, it would be best to get in now while

As always, this is all just my opinion, do your own DD before buying.

Disclosure: No position.