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BRVO.OB

Started by David Randolph, May 30, 2005, 08:01:38 PM

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bigdogs99999

Another amazing pick that I am so happy to have bought.  The fundamentals (I am not a technical indicator purchaser) are great.  CCE will make us owners rich or no one can.  Additional impetus for the stock and CCE is likely the recent interest of Congress in healthier foods in schools.  Coke machines are a huge business, and a product that passes on the nutrition front (as opposed to Coke ... one of my favorites) could explain CCE's interest.  Notes from a recent press release are below.  Dave

WASHINGTON - Candy, soda, pizza and other snacks compete with nutritious meals in nine out of 10 schools, a government survey found.

Already plentiful in high schools, junk food has become more available in middle schools over the past five years, according to the Government Accounting Office, the investigative arm of Congress.

"Parents should know that our schools are now one of the largest sources of unhealthy food for their kids," Sen. Tom Harkin (news, bio, voting record), who asked for the study, said in an interview.

"Would anyone advocate that we take the fences off the playground for elementary schools and just let kids run around in the streets?" Harkin, D-Iowa, said. "By the same token, why would we allow schools to sort of poison our kids with junk food?"

Obesity among children and teenagers more than doubled in the past three decades, according to the government-chartered Institute of Medicine. Obese kids will become adults with chronic health problems, said Harkin, the senior Democrat on the Senate Agriculture, Nutrition and Forestry Committee.

He and other lawmakers want the government to set nutrition standards for food throughout schools and not just in the cafeteria.

Giving kids healthier options "should not be a suggestion, it should be a requirement," said Sen. Patrick Leahy (news, bio, voting record), D-Vt., another committee member. Kids are suffering from higher rates of diabetes, high blood pressure and other illnesses normally associated with adults, said Rep. George Miller (news, bio, voting record), D-Calif.

At issue are so-called competitive foods — snacks such as candy, soda, pizza and popcorn available in a la carte lines in cafeterias, in vending machines and in school stores. Apples and milk are also competitive foods, but the GAO said candy and other junk food crowds out healthier stuff in vending machines and school stores. Competitive foods are largely unregulated.

The Agriculture Department had restricted sales of competitive foods until a 1983 federal court ruling, in a lawsuit by the National Soft Drink Association, limited its regulation to food service areas such as cafeterias during mealtime.

Schools raise substantial dollars from selling competitive foods; 30 percent of high schools raised more than $125,000 annually. The GAO said it was unclear how much competitive food sales benefited school groups and how much benefited school food service.

Advocacy groups point to a government study of 17 schools and districts that improved the nutrition value of their foods. Revenue increased in 12 schools and did not change in four others, the study by the Agriculture Department and Centers for Disease Control and Prevention found.

"Schools can make money without selling junk food," said Margo G. Wootan, director of nutrition policy for the Center for Science in the Public Interest.

The GAO sampled schools that participate in the Agriculture Department's federal school lunch program, which subsidizes school meals and regulates their nutritional content. Those meals have to follow the government's dietary guidelines, which call for eating more fruits, vegetables and whole grains and less calories, fat, added sugars and sodium.

The GAO reported that of 656 schools in its sample, 51 percent of principals and school food directors responded to a Web-based survey. Investigators also traveled to six school districts that have tried to substitute healthier choices for less nutritious foods. The survey's margin of error was plus or minus 15 percentage points.

The GAO report, scheduled for release Wednesday, found:

• Nine in 10 schools sell competitive foods from vending machines, cafeteria a la carte (snack) lines and school stores.

• Vending machines were available in almost all high schools and middle schools but in less than half of elementary schools.

• In one-third of schools, sweet baked goods, salty snacks and other less-nutritious foods were available in cafeteria snack lines.

• Schools often sold competitive foods at lunchtime, in the cafeteria or nearby, allowing kids to buy them for lunch or to supplement their lunches.

• Three-quarters of high schools have exclusive soft drink contracts. Sixty-five percent of middle schools have exclusive beverage contracts, up from 26 percent five years ago.
"Men make counterfeit money; in many more cases, money makes counterfeit men."

ABEX_TRADER

#541
One of the things I looked at is the aspect of the School kids being a great source of promotion. As they get to try the drinks and pick their favorite and have their parents try them that brings in Advertising and product awareness for nothing!

The generations that coming up spend their parents $$ as anyone that has kids knows. Once the kids  activate their parents awareness that will lead to heightened sales over time.

Their was a segment done by 60mins about the effects of the newer generations like GenerationX and so forth and they are the ones that you want to reach!

I forget what tag they have put to the new generation.You can be sure once they endorse it too their parents that it will bring in big sales numbers over time.

Then there is the 7-Eleven stuff that will bring in more Biz.

aitech61

For me it is just a timing issue. This stock will appreciate in a major way from our current levels. Will it be 1, 2, weeks or a matter of days. This management team is constantly working and putting deals together. With Coke in the mix I can see new products in the works as well. You just never know when we will get that PR that will set this puppy running. This stock definetly is a $1 wanna be. It will leave the penney ranks for good IMHO soon!!! Sellers still existed through the end of the week, but buyers are grabbing up those shares.

My gut feel is many are hopping on for the long haul. Management is hitting on all cylilnders once again and with everything in the works to me it is not worth being out of the stock to get in for a few cents cheaper.  I am in for the long haul and I believe it will be fun. We will  see Slammers everywhere this time next year....

poorman1

Picked up a couple Slammers at the local SuperTarget in Fricso, Tx today.  Reasonably priced at $1.19.  Grabbed both the Milky Way and the Starburst strawberry.  Very eye catching marketing.  For small children there is Pediasure, for seniors there is Ensure and for Teens and everybody else there is "Slammers"!  :D

My only short-term concern is the steep market cap of $73MM for BRVO, but I do believe they will grow into that market cap and double from here, once they post positive cash flows between $2-4MM on high growth.

I bought HANS at $4.10/share in 2003 and more recently SNAK at $3.25 and NFLX at $11 all based on consumer perception and improving cash flows.

It appears that the BRVO 52-week high will be difficult to surpass soon, however with such a rapid nationwide distribution of it's product, it may be another Snapple in the making (a similar beverage success story).  Cash flow projections are the key.

Of course this has nothing to do with TA, which I sorely need and is the reason I love 3StocksOnFire.org.

poorman1


ABEX_TRADER

#545
It is early for the issue to make a big move,but it has had previous days of High Vol. and has moved up.

Any downward move would create a buying oppurtunity for people to get more shares for cheap. I'd be one to buy more and it might be what will happen,.

I love to see sure things in the markets and with the recent CCE agreement this is as sure as it gets. The issue will move up in time as it is just to early for a hugh move up.

The Nov.-March time frame is best for issues like this and any move before  then is just icing on the cake. Hopefully I can profit by some of the wild swings it will have like on the last runup.Any news will spark a rally up also.

Good luck! 

Prfsr Hal

I haven't read every post and someone may have mentioned this already, but Bravo does not anticipate any increased revenues this year as a result of CCE agreement and will not increase production levels until April 2006.

Prfsr Hal

robt

Quote from: Prfsr Hal on September 11, 2005, 08:10:21 PM
I haven't read every post and someone may have mentioned this already, but Bravo does not anticipate any increased revenues this year as a result of CCE agreement and will not increase production levels until April 2006.

Prfsr Hal

Even if mentioned, it is worth keeping in mind.

Their revenue growth without CCE is nevertheless signiificant: "Revenues for the period ended June 30, 2005 from unit sales in the United States increased from $1,489,185 for the same period in 2004 to $3,313,038 in 2005, a 122.47% increase."

The April commitment, it should be noted, will triple production, from 2.5m/month to 7.5m. Tripling of production, even though seven months away, is going to be significant to today's market.

If you must smite, post why so I can improve myself.

ABEX_TRADER

#548
There is a saying that "the markets look 6mos. ahead" and this issue should get some interest soon to drive it above the $1 mark and on to the $3-$5 range in anticipation of next years Revs..

Patience is the key and to remember that you are holding a sure thing which to me is everything.

HOLD & Buy on any weakness is the way to play!

Technically it is close to the bottom in all indies and there is only a slight downward risk compared to a major upside return risk.

Resistance stays at .72 at present.Let's hope we crack it to .80 soon! CCE also has strong ties in the markets and I'll bet word will spread about BRVO.

David Randolph

#549
Thanks for your posts on BRVO :)

We've had some developments on Friday during the session but that didn't materialize on the market action. Some things we already knew, like «1. A Form 3 had been filed by Coca-Cola Enterprises Inc. on July 25, 2005 to report the ownership as of July 13, 2005 of options to acquire 68,990,244 shares of Common Stock. Those options terminated without being exercised on August 23, 2005.»

A bit of a surprise was that CCE has warrants to buy 18.65% of the company at $0.36 a share, not 10% as we were expecting (don't forget that initially CCE was set to buy 81,000,000 shares issued by BRVO at $0.16 a share. Actually, 81,000,000*$0.16 = $12,960,000 invested by CCE in BRVO. Now it is 30,000,000*$0.36=$10,800,000, not a big difference after all). If 30,000,000 shares represent 18.65% of the company, this means the number of shares outstanding will be, after dilution, 160,857,909 shares. If this is the case the market cap at this price is/will be 160,857,909*$0.67 = $107,774,798.

The expected revenue for 2006 is $80M, more than 500% revenue growth year over year.

We can see by the market action that BRVO is no fast speculation story. But it is as close to a sure thing as it gets in the stock market.

Technically, the guys that were set to sell those 68,990,244 shares to CCE at $0.36 seem to be still selling on the open market. But I don't think they're selling the whole 69 million shares, I bet they were pretty sad when they saw the stock above $1 and they could not sell a single share. They could not sell, and they could not hold, they were obliged to sell at $0.36 to CCE.

Now they are free to reconsider their options. Of course, with a 400% plus profit on their investment they are naturally taking some profits, hence the selling pressure. But with the recent developments around the company (last 2 to 3 months) I think they won't sell the 69 million, they will keep some for the long term.

Technically we can have a reversal island, but since BRVO seems to like the H&S pattern, perhaps that's what will happen (you can speculate with technical analysis too  ;D). If that's to be the case we're now developing the second shoulder of the pattern.

Either way, you know it, I will continue holding BRVO, time is on my side.

ABEX_TRADER

On short term traders I see that Stochastics works really well as it's the only Indie that I had that showed that the small term rally had meet it's weakness. .72 I knew was the price point of resistnce ,but did not know weather it would breakdown to former levels below .65 .When I saw the Stochastics Oscillator as being high I thought it might happen.

There was a good piece written about it on a site recently that I think will help me to understand how it works and to tweek it better.

Have not thought about trading In & Out of BRVO ,but if I can take advantage of the Pullbacks being safe enough not to miss any major moves I'd be happy.

Holding it long term is usually my strategy anyway until 14day RSI goes well above 90 on a major rally then buy in lower.

Another thing is that the Moving Averages need to Crossover for this to start it's momentum up I thought.It will probably go sideways for sometime with little fluctuations. 

I will check tonight to see weather it is a good time to pickup more at this price point or weather I think it will break further before I pick up more shares.

Penny issues were not doing well today from the ones I track. Oil's retreat which weighed everything down.

JMO


aitech61

It is tough seeing the stock go down but and I may not be making the best move, but I just dont see this stock going below the low .50 cent range. I took the opportunity today to add to my position at the .605 range...

I know you should never try and catch a falling knife, but I think this stock has far more upside potential than further downside......

We shall see!!!!!!!

Terliso

Quote from: don on September 12, 2005, 10:30:57 PM
Form 3 url at Post 553..please see David's excellent precis of this filing, at post 551. Don.

What do you mean Don?

David Randolph

QuoteTechnically we can have a reversal island, but since BRVO seems to like the H&S pattern, perhaps that's what will happen (you can speculate with technical analysis too  ;D). If that's to be the case we're now developing the second shoulder of the pattern.

It is still too early to know if BRVO is developing the second shoulder of an inverted H&S pattern or just entering a decline phase.

Considering fundamentals I believe the first assessment is the right one, now we must let time and the market tell us his judgment.

For BRVO to be building the inverted H&S pattern it should not close below $0.565, which was the low of S1 (shoulder 1 on the chart). It is a positive thing that the volume on this second shoulder is lower than on S1, it means the selling pressure is now smaller.

Time will tell, either way I will continue holding BRVO.