Broadcast International Secondary Offering (BCST-OTC)

Investors are always on the lookout for little tiny unknown companies either raising cash or with news.  There is a video compression company that is actually surprising it has received no realcoverage, but for no other fact than it has so many similarities to a formerly-public company.

Broadcast International, Inc. trades under the "BCST" stock ticker on NASDAQ-OTC.  This is in no way related to the old broadcast.com that shares the same ticker, as that was Mark Cuban’s company he took public and later sold to Yahoo! (YHOO) where he became an insta-Billionaire.  The company is also in the same related field if you think of video as the old audio, but the similarities end there.  This "BCST" is selling some $8.06 million in new stock and warrants in a new SEC filing, and about $6.66 million of the proceeds will be going to the company for working capital and general corporate purposes.

Broadcast International owns ‘proprietary video compression technology’ it calls “CodecSys” where content is converted into a digital data stream for transmission over satellite, cable, Internet or wireless networks; and video content may be transmitted over decreased bandwidth while maintaining media quality.  In short, the company’s goal is to allow organizations to transmit video quality streams with cost savings on bandwidth usage.

This is a Salt Lake City, Utah-based penny stock, and if you want to look up data you can find it under the www.brin.com website.  As of September 30, 2006, we had 34,586,609 shares of our common stock issued and outstanding, and there were approximately 1,300 shareholders of record.  For the 9-months ended September 30, 2006 the company shows sales of $10.97 million and a net loss from operations of $5.7 million and a net-net loss of $6.9 million.  The company also appears to have raised cash on 3 occasions this year before this offering.

Under no circumstances should this article be viewed as any endorsement.  This is just identifying the company as raising cash in the market via an SEC Filing.  I have seen the old "penny stock out of Utah raising cash time after time."  While the particulars of this company here are unknown, you better look long and hard into companies like these before venturing forth.

Jon C. Ogg
December 5, 2006