BELL BUCKLE HOLDIN (OTCMKTS:BLLB) Working On A Turnaround

BELL BUCKLE HOLDIN (OTCMKTS:BLLB) has drawn the attention of the market with its recent price jump, but the company, in reality, has been priming for a rise for several years.

Company Logo - BELL BUCKLE HOLDIN OTCMKTS:BLLB

Taking into account the number of trading volume spikes seen in the last ten years, the most recent stock price action was poised to happen for a long time. Check the following stock chart, and also keep in mind that the recent trading volume is the highest in the last ten years:

1 decade chart for BLLBPaying closer attention to the most recent price action, we discovered the following. After jumping from $.0003 to $.0037, the stock retraced to $.0010, as market participants reduced their position on the stock. With the stock currently trading at the $.0010-$.0015 price range, the upside is more significant than the downside. Closing above $.0020 could be a beneficial alert for longs, as the price could go back to the 52-week highs of $.0037. On the downside, a close below the $.0010 could send the price back to the lows of $.0005. Given the current market conditions, we would not expect such a downward movement, but nothing is 100% certain in the microcap space.Here is the stock’s price action over the last two months: 2 months chart for BLLBWhile the chart indicates that the upside is significant, in our view, the relation of the company with the market regulators doesn't benefit the stock. Read the whole article to regurgitate the entire information about this name, as there are very interesting points besides the unpleasant details.BusinessBell Buckle Holdings Inc. is a very old entity headquartered in Farmington, Tennessee. It was founded in 1995 as Belle Buckle Country Store, Inc., a family owned and operated business dedicated to producing the finest all natural gourmet food products in the market. Products featured in the website - BELL BUCKLE HOLDIN OTCMKTS:BLLBIn these years, the company has accumulated recognition throughout the industry and has grown to include 5 brands, 239 products, being sold in all 50 states and overseas through grocery stores, specialty gourmet & gift shops, and big-box retailers. For those old enough to remember, the following are the name of the brands; Captain Rodney's, Simplify, Bell Buckle Country Store, Rose & Ivy, and Bainbridge Festive Foods. All the products can be reviewed on their website.The company is changing the managementOn February 28, 2018, the market got to know that the previous CEO had finally decided to step down, and Andre Jaberian had been appointed as CEO and Directing Board Member. The announcement is beneficial for the stock for two reasons. Firstly, he brings his expertise of 35 years in export and import business, which positions BLLB very well to expand into US Import/ Export Market:

"The majority of the imports and exports were in Bulk Leather Sales, primarily to the Ports of Salerno, Italy and Izmir, Turkey; with products used in the production of Car Seat Covers for Ferrari, Porsche, and Mercedes; as well as, Pierotucci Luxury Hand Bags and Clothing for other Manufacturers." Source

Also, please have a look at the optimism that is exhibiting the new CEO:

"I am looking forward to expanding into the United States Import/ Export Market. This is the final piece of the puzzle for us! Most people underestimate the demand for Salambour, a step in processing leather, even though it is a $500 million dollar a year industry." Source

In addition, the change shows that the company is restructuring and transforming, which is usually very beneficial for stock intending a turn around in the share price. In the future months, we will see whether the strategy works out. Taking into account the reaction of the market, the new changes, for the moment, have been appreciated.Finally, in the same press release, the market also got to know that the company updated the Florida Sunbiz Directory to reinstate the company's inactive status and updated the corporate officers' information. Furthermore, all fees have been paid up to date and in full. This information is even more beneficial than the change of the CEO, as it shows that BLLB is working towards becoming more transparent with shareholders. The next step should be uploading the financial statements so that the market can assess the value of the company. Stay tuned to BLLB, since the stock can run if this thesis is confirmed.The Caveat Emptor SymbolWhile the prospects of BLLB may look good, readers need to be aware of the Caveat Emptor symbol by the OTC Markets: Caveat Emptor Symbol - BELL BUCKLE HOLDIN OTCMKTS:BLLBIn our view, the bad note is due to the fact that BLLB is not uploading its financial information. We believe that if BLLB continues to upload its new statements and holds a conversation with the OTC Markets, the symbol will be removed. While this process may be short and can make the stock run, we should note that this name is quite risky. Stay tuned, but forget about the shares for the moment.ConclusionCurrently trading with a market cap of $0.035 million, BLLB is an exciting story among micro small caps. With approximately 35 million shares outstanding and a float of only 8 million shares, a lot of volatility can be expected. That's another good reason to leave this ticker to vol lovers and risk specialists. Keep in mind that profits can be large as well as trading losses on this name.To sum up, stay around this ticker, as it will teach us something, that's for sure!Disclosure: We have no position in BLLB and have not been compensated for this article.Image courtesy of MISCHELLE via Flickr.