3SOF

BRVO.OB rose 9% with low volume. Everything is going as expected. I'm waiting for a breakout of the $0.72 resistance level with volume above average.

I bought back BRVO yesterday. What may drive this stock higher is the appearance of Slammer Vending Machines as part of Coke distribution network. Seems like its pretty near. I'll be keeping an eye on it.

Coke earnings in:

Coca-Cola 3Q Earnings Soar to $1.28B
Thursday October 20, 7:36 am ET
By Harry R. Weber, AP Business Writer
Coca-Cola Third-Quarter Earnings Advance 37 Percent to $1.28 Billion on Strong Sales

ATLANTA (AP) -- The Coca-Cola Co., the world's largest beverage maker, reported a 37 percent increase in third-quarter profit on strong sales especially in certain international markets.

The results, announced Thursday before the market opened, beat Wall Street expectations.

ADVERTISEMENT
The Atlanta-based company said it earned $1.28 billion, or 54 cents a share, for the three months ending Sept. 30, compared to a profit of $935 million, or 39 cents a share, for the same period a year ago.

Excluding one-time items, Coke said it earned $1.36 billion, or 57 cents a share, in the third quarter. On that basis, analysts surveyed by Thomson Financial were expecting earnings of 53 cents a share in the third quarter.

Revenue in the July-September period rose 8 percent to $6.04 billion, compared to revenue of $5.60 billion in the same period a year ago.

"This quarter demonstrates early progress in our efforts to achieve sustainable growth for the future," the company's chief executive, Neville Isdell, said in a statement. "We continue to see good results in many markets, including Latin America, Africa, Russia, Turkey, central Europe, Japan and China, and stabilization in an increasingly focused North America."

However, Isdell said Coke still has a lot of work to do in other markets such as the Philippines, India and Germany, as well as to address certain trends in northwest Europe. The company also said it is monitoring energy prices to determine the potential effect on future results.

Overall, unit case volume increased 5 percent in the third quarter. The company said it saw strong sales of its water brands, but unit case sales volume of carbonated soft drinks slipped 1 percent.

In North America, sales volume grew 3 percent. Unit case volume declined 1 percent in Germany, but increased 4 percent in Japan. Coke's unit case volume was especially strong in China, where it grew 23 percent in the third quarter, but especially weak in India, where it dropped 22 percent in the quarter due to raw material and distribution cost increases as well as the lingering effect of pesticide allegations, which Coke says are false.

For the first nine months of the year, Coca-Cola said it earned $4.01 billion, or $1.67 a share, compared to a profit of $3.65 billion, or $1.50 a share, for the same period a year ago. Nine-month revenue was $17.55 billion, a 6 percent increase compared to the $16.54 billion recorded a year ago.

The Coca-Cola Co.: http://www.coca-cola.com



Carbonated sales slipped 1 percent - this is where Bravo comes in to Cokes plan!

Before breaching the $0.72 resistance level BRVO.OB needs to take out another developing technical pattern: a descending channel.

You can check this formation on the chart below.

My reasoning for owning BRVO.OB is much more fundamental than technical, and you know how the technical picture can change on a dime. For a short term bullish technical signal I would like to see a close above the upper limit of the descending channel, which for tomorrow will be standing at $0.615.

After this a bullish breakout of $0.72 would be heaven for BRVO.OB.

On the fundamental side I can only see revenues and earnings growing in the years to come and a very cheap stock. Patience will certainly pay on this one. I'll be patient.

(I called and spoke with James Dryer, Investor Relations, 561-837-8057 or [email protected]) and confirmed the copied post below.

A few more points to add from the conversation:

-  Jasper Products (Missouri) is ramping up for production and BRVO shares some cost
-  He feels they will be cash flow positive by January
-  4 million for the quarter to be filed November 15th is the estimate
-  Walgreens and some International sales will be in the quarter
-  The margin may go down a bit with CCE, but costs also go down
-  110 million shares outstanding and he cannot confirm how the financing will work
-  They are aware of Cornell toxic financing and will not ever get in with them for financing
-  In November, the ' Breakfast Blenders ' begin
-  They are hoping for more schools to take off in using the products
-  They project 70-100 million next year in revenues
-  James believes that at 2-3 times value, the cap would rise to 300 million
-  James believes the price should refect $ 3.00
-  He also said it all will take a year to really see the results

The post below is copied:
By: jbg96 
21 Oct 2005, 02:20 PM EDT
Msg. 21546 of 21560
Jump to msg. #   
I attended the Bravo meeting in BOston today. Itw as held in a top hotel in the financial area.The room had 8 tables and all were filled to capacity of 5 each for 40 attendees. Roy and the Legal Council (Who lives in Boston) and the MArketing VP were there. When asked who were investors only 4 of us raised hands. The rest were stock brokerage firms. The food was first class a full dinner, I had baby lamb cops others had Salmon fillet. The presentation lasted 45 minutes with 15 minutes of questions. Everyone stayed, sample chilled products were available on the table in a large ice filled tub. Roy and his Marketing guy had to leave at 1 PM to meet with a large local milk processor.

News to me : 4th QUarter 05 will not break even because of ramp up for the CCE deal and promotions. 1 St Quarter in 05 will have earning. New "non-dilutional" financing with a major institution close to being signed. CCE will test market the new single serve bottle of slammers in 13,000 machines. CCE ordered a huge amount of product (he didnt give numbers)for their MDA kick off. Four football teams will carry the Pro Slammer logos. One basketball team and a hockey team next year. TV ads are being planned for Nickalodian channel for next year. Erica and Slammers received one and a half free hours of air time this last quarter. More this weekend. They have a deal with her for the next two years.

Everyone in that room took samples to taste. I heard one lady say she loved the Vanilla Slim Slammer. The four people at my table will be buying stock and getting some more questions to Roy.

I think this meeting was very successful.

thanks for this update fill the gap (applaud).
holding more than 6.66% of your portfolio?
cheers
O.

Great work fill the gap.Thanks for posting and good job getting this info.

Sounds all good

6.66 % and will increase on a breakout.  This is a nice long term position.  The best part is that you can drive near your home (globally in some cases) and sample the product.  Coke involvement as the largest distribution channel in the world is very strong.  And if all goes well this year, the price will absolutely reflect.

The main concern I have is that BRVO said they did not know why did CCE not take 51 % ownership.  It was CCE's decision and not BRVO's according to the call.  So why would Coke not want to go ahead and get majority now before it takes off ?  The only speculation from IR was that CCE wants to see how it goes and then evaluate in a year.  He thought perhaps it had to do with liability ?   

You would think that Coke would want to pay much less now for control ?  And Coke also is not financially marketing BRVO.  This rests on BRVO for the time being.  Of course being associated with them is huge marketing, but commercials, ads, etc. all BRVO's responsibility at this time.  But I want to know more about the plan of action.  BRVO will need financing to do most of this as the CCE money is not being exercised at this time according to the call.  And they were unaware of any analysts picking up coverage at this time.  But interest may generate in the current meetings.  The legislation for healthier schools will help BRVO.  Coke wanted in the game and BRVO was the ticket.

Fill the Gap:

Just a thought on my part but it seems that Bravo is in its early stages and just as you mentioned, CCE wants to wait and see if its gonna take off. I think thats a very logical and prudent move by CCE. I don't see a necessary negative there. As far as analysts go, its very hard to get analysts when  the share price is so small. No analyst is gonna stick out his neck on something thats just starting. We'll have to see results in terms of $$$ before any analyst come on board.

jmo,

Ultra (still holding BRVO and will continue to do so)

I E-mailed Roy Warren, CEO of Bravo Foods, just to send an encouraging word and to let him know I was an optimistic stock holder. He sent an optimistic E-mail in return Friday evening 10-21-05, short but positive.


   
"Thanks very much. I also hope to see it at Walmart still working on
that. We do quire well at Sams.

We will see our distribution grow substantiall when CCE begins to
deliver in November. Thanks." Rgw

I hope that CEO Roy or whoever writes his emails learns how to spell.

Quote from: johnbmcginnis on October 22, 2005, 11:56:44 AM
   
"Thanks very much. I also hope to see it at Walmart still working on
that. We do quire well at Sams.

We will see our distribution grow substantiall when CCE begins to
deliver in November. Thanks." Rgw

Perhaps he is testing out the newest 100-proof vodka-enhanced Slammers...

Thanks for the excellent info fill_the_gap 

We had estimates for $80M in revenues for 2006, now they give us a $70M to $100M range. The midpoint is $85M.

I think their words raise some doubts about CCE exercising the right to buy 30 million shares at $0.36 each (an investment of $10.8M). This is a negative and a positive: a negative because CCE seems to lack conviction in investing in BRVO.OB. A positive because this way we won't have the dilution of 30 million shares.

We still don't know what the outcome will be regarding this issue, but I don't think that's crucial.

We have a current market cap of $62.85M and about $85M estimate in sales for 2006. This will be a revenue growth of about 600% YoY. We don't have an estimate for profits, it would be interesting to have one. I think there were some margin calculations way back on this thread but I can't find them now.

I see BRVO as an exponential growth story in terms of revenues and profits. The whole thing is just starting. We know the product exists and is selling well (we don't know this for many OTCBB stocks with similar market caps).

As a shareholder I have to be in through 2006 to see if the company delivers. If that happens I believe the share price will be at $3 or more by the end of 2006. And the growth won't stop there, if the product is competitive it won't stop before it's selling worldwide. When I see Slammers being sold at the supermarket near my house in Portugal, that's when I plan to sell this investment, maybe 2 or 3 years from now, perhaps at $30 a share.

From a short term technical point of view, the stock is trading on a downtrending channel. The upper limit of that channel is $0.61 and the lower limit is $0.45. I think the stock will never touch the lower limit again and that it will make a bullish breakout of the descending channel soon.

David,

The terms of new financing will also be a factor.
BRVO does not have the CCE money and BRVO is not profitable yet.

I am hoping for a non dilution based deal for the sake of the shareholders.

They would not comment on terms of any deal.  But BRVO certainly needs financing.

Let's say they just meet 4 million in revenue in November 15th filing.  Will the market begin to reflect future value at that time ?  The filing will show a base without CCE.  So CCE should only improve the forecast.  Just not sure if another quarter will need to pass.  I certainly will add on the lower end of the descending channel. 

The focus is on the long term.  And being that we can already go down the street in the US and purchase the product, I am with David long term with BRVO.  The largest distribution channel in the world (Coke) can only help.

Thanks for your comments fill_the_gap 

BRVO.OB still couldn't make it, breaking out of that descending channel. But it's closer now.

There was no new fundamental information the last couple of days (as a matter of fact, since October 5th the company didn't issue any press release or SEC filing). Technically I would welcome a close above $0.60 this week.