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Bloggerwave BLGW and its $1,000,000 Promotional Mailer

Updated: May 18 2010 2:30 AM EDT from TraderTV 

Bloggerwave Inc

Bloggerwave's business is to collect fees from companies and in turn pay bloggers to write endorsements of their products. This is an interesting business, but they do not seem to be a big player. Given the financials a $10M market cap is optimistic. With the stock at $0.57 the market cap is ~$50M. TraderTV currently has no position but plans to short.

In a press release, the company claims to be the #1 commercial blogging service in UK and #5 in US. They are #1 in the UK because they are the only one based there. According to the rankings they are actually #6 in the US:

Site Unique Visitors Per Month 55,678 38,931 27,578 13,090 10,810 6,394
Year Revenues Expenses Net Income
2009 $105,008 $205,854 -$115,874
2008 $3,670 $18,259 -$16,464
Cash as of December 31st, 2009: $115

Last but not least, the company spent $1,000,000 on a paid mailer below promoting the stock in addition to $500,000 to InvestorsHub. Why not spend that money promoting the product? 

Other Notes

As a first look at the product TraderTV created an account on Bloggerwave. There was 1 job that pays $4 available. 

At the bottom of is "powered by IQDivision." This website lists four links: BloggerWave, ReviewWave (similar service?), ExchangeWave (domain expired) and SemoWave (link dead). domain owned by:
Jesper Svane
Horsholmvej 32
Kvistgaard, NA 3490

Disclosure: Short BLGW

Disclosure: Short BLGW