A common question about Blugrass Energy Inc.(PINK:BLUG) after yesterday – why 32, where did they come from? Well, the answer to that question is quite simple, and it is not so important as the one to what happens next?Now, in order to make even a vague prediction of the near future, you have to build on solid ground (information) about the past and present-day situation of the company. Starting with yesterday, when unprecedented activity was observed on the stock market. More than 32 million shares exchanged hands, which is a level never seen before in the history of Blugrass. The result, however, was not the same as the one from the previous days of the week. 
Yesterday’s session opened at $0.044 and closed at $0.033 per share, contrary to the positive daily sessions this week. Yet, one way to justify the current situation would be that nothing lasts forever, especially when promotions are the catalyst for things to happen. This is what actually happened – after the warm-up with one paid promotion on Wednesday, yesterday it was a team of promoters hitting mailboxes, paid to do so of course.
Promotions, however, are only one small part of the picture. Today, another important issue is at hand. Ten days ago, there was another announcement from Blugrass regarding a 5-to-1 reduction in the number of shares of the company`s authorized common stock and a corresponding decrease in the number of issued and outstanding shares of the company’s common stock. The record day for this is Friday April 1st. Whether it will be in the best interest of current shareholders remains to be seen, but it is possible that not all shareholders were happy with it, hence the immense trading activity and decrease in the stock price yesterday. [BANNER]
In the same announcement from Feb. 22nd, the company also mentions its plans to drill its first deep natural gas well this summer upon confirmation of funding. Now, funding and the overall financial condition of the company is another interesting topic. In terms of cash, for example, the company has indicated that there are $68 handy for the period ending Dec. 31, 2010. In fact, this number also sums up the total current assets of the company.
Nevertheless, there have been several announcements about properties since then, so the next SEC filings due could be a bit more optimistic. Furthermore, there are other companies with operations in the same area as Blugrass projects, which turn out successful.
It is yet to see, however, whether Blugrass could also turn out as a profitable enterprise, capable of providing value to shareholders. There is a high level of uncertainty, which only smart management moves can eventually overcome.
