BRVO.OB

[basonista]

I thought about speculating on why this is happening but I'll just post the news release and wait for more news.

DJ Coca-Cola Enterp No Longer Seeks Bravo Majority Holding

WASHINGTON (Dow Jones)--Coca-Cola Enterprises Inc. (CCE) Tuesday disclosed that it has ended talks to acquire a majority stake in Bravo! Foods International Corp. (BRVO).

Coca-Cola Enterprises, however, remains in talks with Bravo on an agreement regarding master distribution rights for Bravo products, according to a filing with the Securities and Exchange Commission.

Coca-Cola Enterprises had disclosed on Aug. 3 that it had entered into a letter of intent to buy 81.03 million Bravo shares from the company at $0.16245 per share. That purchase, together with the shares that could be acquired related to a deal with Bravo shareholders, would have given Coca-Cola Enterprises ownership of about 50.01% of Bravo's outstanding common stock, according to a regulatory disclosure.

Tuesday's filing, however, said that Coca-Cola Enterprises had notified Bravo stakeholders that it was terminating its option agreement with them because it had ended talks with Bravo to acquire a majority holding.

Soft drink distributor Coca-Cola Enterprises said it is still negotiating with Bravo for an agreement to get master distribution rights for Bravo's products. Coca-Cola Enterprises said that as part of that agreement, it expects to get an option to acquire a noncontrolling equity interest in Bravo.

Bravo produces and distributes branded, shelf-stable, flavored milk products, including Slammers Ultimate Milk, and cross-promotional brands with companies such as Masterfoods and Marvel Comics.

-By Tony Cooke, Dow Jones Newswires; 202-862-1347; [email protected]


(END) Dow Jones Newswires

[atalltexan]

I wonder if the opening will be a response to the above news item ?  I see an indication of .70 for the initial ASK.

[birdmsu]

any idea on how this thing might/ should react. i feel like it is good news since the original  announcement of the coke deal tanked the shares. Bravo is still getting the distribution, which is probably all they wanted anyway, and get to keep their shares from being sold at 25c a share. On the bad side, why wouldn't coke execute the loi? the only thing i can think of is that since bravo has done a lot of questionable financing deals, coke didn't want to pick up the risk. either that or coke found something else about the company that they don't agree with. anyway, your thoughts?

[David Randolph]

Considering my analysis made yesterday I'll buy BRVO.OB around today's open. I hope it is in the low 60's. What a magnificent buying opportunity this is.

This will be on the 3 Pennies on Fire Portfolio, since BRVO.OB is a stock traded on OTCBB and I'm only allowed to buy NYSE, Nasdaq or AMEX stocks for the 3 Stocks on Fire Portfolio.

I was reading the reports out of CCE and BRVO.OB may get interesting again. But not so fast, there are some issues we need to deal here:

1) We know now that CCE's options to purchase 68,990,244 shares of BRVO cost only $17,247. Just seventeen thousand dollars for the right to buy 68,990,244 shares of BRVO at $0.36 a share. No wonder they got out of the deal so easily, this is a negligible loss for CCE.

I wonder why Alpha Capital AG, AMRO International, S.A, Ellis International, Longview Equity Fund, L.P., Longview Fund, L.P., Longview International Equity Fund, L.P., Mid-Am Capital, LLC,  Osher Capital Inc. and Whalehaven Capital Fund Limited sold these options to CCE at such a low price (perhaps the reason was the deal was made 5 or 6 months ago, when BRVO was trading around $0.10 a share).

2) We don't know, the market doesn't know, why CCE is pulling off the intention to take the majority control of BRVO. This may bring negative rumors to BRVO.

3) BRVO now won't need to issue those 81,000,000 new shares to sell to CCE. CCE says it will take about a 10% interest in BRVO, and BRVO says it will sell some warrants to CCE that later will be converted to common shares, but 10% is just about 11,000,000 new shares, so the dilution effect will be much smaller. Plus, the price then paid for BRVO's shares will be $0.36, not $0.16 as it was on the previous deal.

4) «Pursuant to the contemplated transaction, as modified, the Company and CCE
anticipate entering into a Master Distribution Agreement, of the same
nature and scope as previously announced.»

This is a positive.

5) We need to remember that initially the deal with CCE was seen by investors as a positive, many people bought BRVO because of that news, or they would have never heard of the company. So, they will probably be scared and sell tomorrow, they will perceive this as bad news, as they did perceive the prior deal as good news.

6) Bottom line and conclusion, I'll be a buyer of BRVO in the near future. I don't know if the initial reaction to the news will be a fall or a rise (I suspect it will be a fall), and that would present a wonderful buying opportunity.

7) I'll be looking to buy BRVO tomorrow in the low 60's, but if I can't I'll just chase it higher with everybody else who is familiar with BRVO for a long time. One thing I won't do: I won't buy it on a higher open, the general public must perceive the end of this deal as bad and sell, that will clear the way, the bullish way, for BRVO going forward.

This is my first take on the news, I'll think it over during the night and design a course of action for tomorrow before the opening bell.

[David Randolph]

Just one correction, we'll open an exception on BRVO.OB and buy it for the 3 Stocks on Fire Portfolio, 6.66% of capital. You see, if it were for the 3 Pennies on Fire we would buy just $1,000, and that's ridiculous considering the stock we're talking about.

After all, BRVO.OB won't be traded on the OTCBB for long, I believe. As it happened with AOBO.OB that turned into AOB ...

Clarification made, it's time to get busy !

[David Randolph]

Ok, bought 25,000 shares at $0.60 a piece.

I guess we can wait for a new subscriber  :  (thanks Starfire)

"...................... the H&S formation on the chart (which is $0.20), I'm still convinced we'll see $0.60-$0.64, the 61.8% Fibonacci retracement level in the near term. I guess the stock will make a prolonged accumulation phase at that area and then, only then, will restart its long term ascending trend.

Though I wish good luck to all those holding, BRVO seems to be a good long term investment.
"
David,
If it does drop to 60 cents, my donation check will be in the mail.

Starfire

[Irishman]

FWIW-
  There is no way CCE backed away from their LOI. NONE! I believe that Bravo had no intention at all in going forward with that deal since it was extremely one-sided on CCE's behalf. I further believe that it was the superb management team at Bravo that backed away and now they will get their cake and eat it too. CCE will get a small stake in the Company (not controlling interest much to their dismay) and Bravo gets the massive distribution channel that they have been wanting. As I have posted several times on this thread, these guys are as sharp as they come. When the distribution deal is released in the next week or so, BRVO should pop big time. All the best.
Irish

[Amarens]

Ok, bought 25,000 shares at $0.60 a piece.

I guess we can wait for a new subscriber  :  (thanks Starfire)

"...................... the H&S formation on the chart (which is $0.20), I'm still convinced we'll see $0.60-$0.64, the 61.8% Fibonacci retracement level in the near term. I guess the stock will make a prolonged accumulation phase at that area and then, only then, will restart its long term ascending trend.

Though I wish good luck to all those holding, BRVO seems to be a good long term investment.
"
David,
If it does drop to 60 cents, my donation check will be in the mail.

Starfire

Does anybody know the isin code or nsin code? I have 105666101, but that is incomplete apperently...
Thnx in advanced

[Melf Elf]

I'm still convinced we'll see $0.60-$0.64, the 61.8% Fibonacci retracement level in the near term.

Good call, David.  Applause.

[starfire]

Ok, bought 25,000 shares at $0.60 a piece.

I guess we can wait for a new subscriber  :  (thanks Starfire)

"...................... the H&S formation on the chart (which is $0.20), I'm still convinced we'll see $0.60-$0.64, the 61.8% Fibonacci retracement level in the near term. I guess the stock will make a prolonged accumulation phase at that area and then, only then, will restart its long term ascending trend.

Though I wish good luck to all those holding, BRVO seems to be a good long term investment.
"
David,
If it does drop to 60 cents, my donation check will be in the mail.

Starfire

David, cheques's in the mail. It is my pleasure! Great call.

Starfire

[starfire]

David, glad I got up late this morning!! Any idea how long it will linger in the 60s?? What is your gut feel??

By the by the donation should be in the SOF account.

starfire

[basonista]

I agree with the Irishman (not because I'm half Irish myself ).  Everyone was asking why Bravo! would sell themselves so short with CCE considering the future potential of the company based on new accounts and product line.  I am betting that Bravo! "got smart" and saw they were getting the shaft on this deal and got out.  Can't wait to hear the PR from Bravo! on this.

Overweight in BRVO now and happy about it!

[David Randolph]

David, glad I got up late this morning!! Any idea how long it will linger in the 60s?? What is your gut feel??

By the by the donation should be in the SOF account.

starfire

Yes, we got it Starfire, thanks a lot  (now you are an Honours Member of the 3 SOF Community)

I don't think the stock will stay long in the $0.60's. You see, my previous call was based on the deal with CCE going ahead, this way the stock has a lot more potential. I believe it is possible for it to close higher today and never look back ...

Good luck for BRVO's investors 

[yuyjust]

Hi great call today David. Right on the spot 
well you make me a believer. I have a question, is there any other way to send the donation (or subscribtion) money other than paypal since a have a little problem with paypal (don't wanna get into that nasty dispute again) so I cannot use paypal now. Is there anyway other than paypal. I think wire transfer might cost too much (my bank charge $45 for outgoing wire transfer fee,  that my 2 months for 3stocksonfire subscription now) well I'm looking forward to join you and all the nice ppl here for year to come.
                                                   thank you

[don]

Nothing new, except it is always nice to get the news from the horse's mouth (excuse me, Roy, its just an expression!). I do like Roy's time completion estimate. Whoever said wild and woolly got it right today. Still, I sense that this was a day very carefully orchastrated by the MM's. Fox.
Bravo! Foods International Modifies Proposed Transaction With Coca-Cola Enterprises Inc.

Wednesday August 24, 2005, 9:30 am ET

-Files SEC Form 8-K-

NORTH PALM BEACH, Fla., Aug. 24 /PRNewswire-FirstCall/ -- Bravo! Foods International (OTC Bulletin Board: BRVO - News), a brand development and marketing company that manufactures, promotes and distributes vitamin-fortified, flavored milks, announced today that both parties have agreed to modify the Letter of Intent dated July 29, 2005.

Full details of the disclosed SEC Form 8-K Filing can be found at: http://www.sec.gov and http://www.bravobrands.com .

Pursuant to the contemplated transaction, as modified, Bravo! and CCE anticipate entering into a Master Distribution Agreement of the same nature and scope as previously announced. In addition, upon entering into the MDA, it is anticipated that the Company will issue warrants to CCE that, if exercised, will permit CCE to acquire approximately 10% of the authorized common stock of Bravo! as of the date of the issuance of the warrants. The exercise price of the warrants will be $0.36 per share.

Bravo! CEO Roy Warren said, "We are excited to continue working with Coca- Cola Enterprises toward a mutually beneficial Master Distribution Agreement, and to have CCE as a potential investor."

Bravo! Foods expects the Master Distribution Agreement to be executed by the Company and CCE by the end of August.