BRVO.OB

[robt]

Good, I think they'll be able to clarify why this deal is a good one!

The market seems to think Coke getting cheap shares devalues BRVO.  Or maybe just bored by this deal, and run off to find something with more 'mo.'

If the cc doesn't jumpstart things, we'll be waiting for Coke's distro muscle to raise the top line.  

[snowcat]

Got this emailed to me

Bravo announced this morning that they have completed an exclusive,
multi-year distribution agreement with Coca-Cola Enterprises. The
stock opened at $.69 and immediately dropped to $.64 and is currently
getting certain funds out of the stock. When that selling dries up,
which should be very soon today, the stock should rise well above
$.70 and is looking excellent for the long term. I am projecting a
$2.00 stock within 6 months.
GE
--

____________________________
Geoffrey J. Eiten, Publisher
OTC Special Situations Report
300 Chestnut St, Suite 200
Needham, MA 02492
781-444-6100 ext 613
781-444-6101 fax

website: www.otcgsw.com

[Michael]

Technically David has ensured us that this is a safe bet (if such a thing exist!) but how does it look fundamentally.

Imagine if they following players teamed up:

• The owner of the world's strongest chocolate brands
• The owner of the world's largest distribution network of soft drinks
• The world largest dairy cooperative

And they came up with a unique concept for a flavored milk drink, which gives large distribution savings, and significant advantages for the retailer.

Well if you are holding shares in Bravo Food international you are now part of that Joint Venture.

One of the main shareholders in BRVO is Mid-Am Capital, The finance arm of the world's largest dairy cooperative. BRVO has today signed a long-term distribution agreement with CCE who owns the world largest distribution network for soft drinks and they produce flavored milk drinks under a co-branding agreement with Masterfoods USA the confectionary and snack food division of Mars Incorporated, with world famous brands like Milky way, Starburst and 3 Musketers.

The product they produce can be distributed without refrigeration and have a long shelf life and therefore give unique advantages for the distributor and retailer.
Coca Cola Enterprises are probably the most professional and experienced company in the soft drink universe and the agreement today probably better than anything express the long-term potential for this company.

There have been some discussions about the warrants issued to Coca Cola enterprises. The price was most likely agreed when the share price was at a lower level but even with todays POS I think it is a small price to pay for getting access to Coca Cola's distribution network. It is also important to remember that Coca Cola has already required options from existing shareholders to buy 69 million shares. Giving them options and warrant for 33% of the share capital. Enough to make sure that they will make the corporation work.

My interpretation of the changes in the distribution agreement is that Bravo refused to accept the price offered by Coca Cola for the additional 81 million shares. You could say Bravo Food actually managed to bully Coca Cola into accepting a less favorable deal. I am not sure I understand why the stock didn't increase on this background but instead dropped. But as said before you don't have to understand it to profit from it

Let me finally show the picture that convinced me that this was a unique investment opportunity:

[gromitron]

Michael,

I'm glad you liked the picture I took.  I had to drive 45 minutes on a rumor from my uncle that the vending machine existed at all.   But it was worth it!!  My sense of whether CCE was for real with BRVO  disappeared when I saw them.  I usually wont quote someone else but in relation to the sell off today, this may shed a bit more light on who was doing it.  This quote is from RB forum, after someone spoke with Investor Relations.

"Just spoke to investor relations. They're very excited by the CCE deal. A CC will be done next week, an announcement of such will be made later today or tomorrow. The downside today is the final clearing out of the Convertibles, i.e., the 12 investor funds that financed Bravo's operations previously and that were a part of the original CCE deal (they also had 20M shares issued to them). They wanted to lock in their profits (cost bases were .12-.15/share) and they're just about finished doing that. This is the LAST bottom we'll probably see in Bravo. We'll see a rise in the PPS soon, but with a broader base without the dominance of these funds. They want to cash in their profits (for all sorts of reasons)."

[Michael]

Dear Gromitron, Raymat and Basonista,

Thanks a lot for all your efforts. Imagine what a forum we have here:

One member drives 45 minutes to take a picture and share it with the rest of us. Another member calls the IR and take the time to inform all of us and finally Basonista use a small fortune to buy Slammers for the whole family and not only make them happy but also contribute to the EPS to the benefit of all BRVO share holders!

One question for Basonista - how do you think the 3 Musketeers Slammer will taste with a sip of Cognac? (trying to do some Business development here  )

Mike

[snowcat]

I guess with a little alcohol, it would be like a Kaluah Mudslide (which they sell, cold, in Slammer type bottles, in several liquor stores in the NE).  It would surely generate some more interest:

"Get Slammed with Slammers"

SWTS.pk, btw are planning to go national.

[basonista]

Hmmm, Cognac..... <--- doing my best Homer Simpson impression.

Actually, I'm more of a tequila man although I have enjoyed a Grand Marnier, Cognac and Sambuco or two.  Cognac plus a Slammer sounds like a winning combination to me!

What would go good with tequila...  Let's see.  A Tequila Sunrise could become a Tequilla SunBurst (using Orange Starburst).  A Strawberry Marguerita could become a Strawberry Slamarita (Strawberry Starburst).  You could mix one of the Slim Slammers and call it a Slim Mexican.

For other drinks you could add a chocolate Slammer with any of the coffee drinks and come up with a Dirty Irish Coffee or Black and Slam Russian!  Wow, the possibilities are endless!!!  I think you guys are onto something!

[valueseeker]

I was in the run up of BRVO from low $0.6 to $1.2. I remembered listening to the CC and the CEO was doing the following calculation of the company's valuation.

He was assuming $50M sales (not sure if it's going to next year or 2007), and 100M shares. He used 3x of sales to come at $150M valuation, which gives the share value $1.5.

The 1st deal from CCE sounded like massive dilution and the uncertainy was a bit too much so I sold at $1.1 when I had the chance.

Today, we are still at ~100M shares oustanding (although the shares authorized is probably 2.5x). We have the greatest brand name on the earth and the largest soda distributor in the world as the partner/share holder. I bought some of my shares back last week at the dip and doubled my shares today.

The flavored milk market that BRVO is at is $2B. You have to think BRVO can legitimatlly capture, say 10% of the market with CCE. This puts sales at $200M/yr and market cap at $600M+ (assuming 3x of sales). This gives $6/share assuming 100M O/S shares, or $2.5/share assuming 250M authorized shares (if all authorized shares are issued, which is probably unlikley). Either way, the uncerainty is gone and we will be able to particpate a great run up.

[David Randolph]

It's great that Michael joined us on this BRVO venture. I'm sure this thread will get even more interesting now (it is already the most read thread on 3 Stocks on Fire).

Also great posts from other members ... it's a pity I have just a few minutes to dedicate to each update today.

I can't find the post now, but I've read what can be a very plausible explanation for why BRVO doesn't zoom up immediately. Remember the 12 shareholders that sold options to CCE for CCE to buy about 69 million BRVO's shares at $0.36? They were not mentioned on this update on the deal. Probably CCE isn't going to buy those shares from them anymore, just the 81 million issued from BRVO, at the same $0.36 it was going to pay to those 12 existing shareholders.

Perhaps some of them are selling shares in the open market, hence the selling pressure and that's why the stock isn't rising as we thought.

Anyway, this selling pressure is temporary and as soon as it ends fundamentals will drive BRVO's shares higher. I will continue holding the stock, no matter what happens in the short term.

[Michael]

David,

I think you are wrong here. In the 10Q it is stated:

On July 13, 2005, Coca-Cola Enterprises, Inc. acquired options to purchase shares of common stock, convertible securities and warrants, entitling Coca-Cola Enterprises to purchase approximately 69,000,000 shares of common stock from 9 non-affiliated shareholders of the Company (the "Options"). The common stock and other securities underlying the Options represent approximately 23% of the authorized shares of the
Company's common stock. The exercise of the Options by Coca-Cola Enterprises is contingent on the completion of due diligence and the execution of a mutually satisfactory definitive master distribution agreement.

It seems to me that this is a done deal as we most assume the DD was successful. This has nothing to do with the company they would therefore not necessarily provide any further updates.

If I am right they will have options and warrants for 99 million shares which effectively could give them control over the company. I think this in addition to an disagreement on the price for the additional shares is the reason why the agreement was changed and I consider this very bullish. It would be a good question for the conference call though!

[don]

The stock opened at $.69 and immediately dropped to $.64 and is currently
getting certain funds out of the stock. When that selling dries up,
which should be very soon today, the stock should rise well above
This was a quote from an OTC newsletter service, posted by Snocat (tks!).
I have heard ( second hand and not corraborated) that Longview was the big seller.I guess they were unable to avoid the temptation of making a 5 bagger (their converted cost was 12/15cents).The size of their holding was in a SEC filing, but I can't find it right now. I suspect that there may be other large sell offs as the stock advances from these levels. But it will advance, in time, no doubt in my mind. Holding my core investment.
Michael, you have a different interpretation of whether there are any such large non-affiliated shareholders. As you suggest, the CC will be the place to clear this. Don.

[Michael]

Michael, you have a different interpretation of whether there are any such large non-affiliated shareholders. As you suggest, the CC will be the place to clear this. Don.

Nope. I agree that there are a large number of shareholders with shares, options and warrants even after the CCE deal, who are setting on a +500% profit and I can understand if they decide to take some money of the table now when the deal is signed.

What I said was that Coca Cola acquired 69 million shares on July 13. The only condition was that they concluded a successful Due Diligence and that the distribution agreement was signed. As fare as we know both these conditions were fulfilled. I am therefore convinced that CCE has acquired the shares. After all why would CCE cancel an agreement, which would give them a 100% profit?

The difference between the shares CCE acquired from existing shareholders and the 81 million shares that they initially was offered by the company is that here the agreement was not signed and I believe that Bravo simply told CCE that they were not ready to give them 81 million shares at a huge discount and the compromise was that CCE got 10 million in order to sign the distribution agreement.

I might be wrong and it certainly would be nice to get it clarified.

Mike

[don]

Understood, Michael;  and yes, agreed that we do need clearance on the total numbers (a) issued and (b) held by CCE.
I understand that Longview converted 1.6 million shares whose cost was only .125/share.
Rather than act responsibly on the nice gap up on the MDA news, and releasing the shares into the buying pressure, they just dumped them.
I understand also,that they have 3-4 million more "convertibility", but were not intending to sell at this time. Don.

[shawFund]

The management gave CCE too much discount for the shares and current shareholders are not happy with it.

If I am a shareholder and saw the company gave almost 50% discount to another company even a partner, I will not hold my shares.

The stock may drop to $0.26-$0.36 level.

Just my opinion.

[gromitron]

hey guys,

I enclosed a link showing the letter cce sent to each one of the 12 terminating the option to take their shares.  When they stopped trying to get 50.1% they terminated the options to take their shares.


http://edgar.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=3873389&Type=HTML