BRVO.OB

[robt]

Roy Warren opened the CC for the distro agreement with forward guidance of $3.6 to 4 million for this Q, 6 to 7 million for next, and for 2006
70 to 100 million dollars in gross revs
According to the guy who handles the education market, the numbers for that channel were "astronomical...numbers that we never dared think about," with a promise of specifics at end of Q.

Warren was also very clear in stating that he does not expect to take any financing option that will affect the float or the share price in the near term, and that details of financing will be provided during the next cc.

I doubt that the forward numbers are yet familiar and accepted to investors; now that the distro deal is in effect, IF the above is all confirmed, and IF the hedgies are really done with selling, I think we may now see the real effect of such guidance.

I don't doubt that we'll see some "selling on the news." Taking some profit does seem the safest thing to do.

But I think trading out entirely may prove to be short-sighted.

BRVO may move well "ahead of itself" before it again becomes cheaper.

[David Randolph]

I also think there can be a sell the news effect after the conference call, but I'm not such a fast trader and BRVO is a long term holding of the 3 Stocks on Fire Portfolio.

For people selling, remember $0.72 was a resistance level, and now it will probably act as support.

My fundamental reasoning tells me BRVO has a lot more potential with this second version of the deal with CCE than with the first where CCE would take control of 51% of the company (without buying any stock from us, public and small shareholders). The second and probably final version of the deal with CCE is much more «shareholder friendly».

But the market still doesn't reflect that. The stock must trade above $1.42 to show all people interested that this second version is better than the first.

Since I see BRVO above $1.42 in the not so distant future, how could I sell at $0.76 and try to buy back at $0.72, putting my position in risk? I can't.

But I wish good luck to people selling, I wouldn't mind to see a pullback followed by a new and reinforced leg up.

[john b mcginnis]

David, If I could physically applaud you, I would. I'm not nearly as confident and experienced in Stock analysis and forcasting as you. But, learning a lot here. I agree with your thoughts and insights on the future of BRVO.
It's possible that I could hold this one for a year or more. Only time will tell. I hope you can find more BRVO type stocks for 3Stocks. Thanks for finding this one.

Maybe think of creating a "long holdings 3 Stocks portfolio" for BRVO type stocks.

[snowcat]

Revenues up 293%

Bravo! Foods International Reports Record Third Quarter Revenues
Monday November 14, 4:01 pm ET


NORTH PALM BEACH, Fla., Nov. 14 /PRNewswire-FirstCall/ -- Bravo! Foods International Corp. (OTC Bulletin Board: BRVO - News), a brand development and marketing company that manufactures, promotes and distributes vitamin- fortified, flavored milks, is pleased to announce results for the three and nine-month periods ended September 30, 2005.
ADVERTISEMENT


For the third quarter, total revenue grew sharply to $3,245,305, up 293% over $825,430 reported for the same period in 2004. Loss from operations for the quarter was $(1,833,287).

Bravo! reported a net loss applicable to common shareholders for the third quarter 2005 of $(4,994,496) or $(.04) per diluted share, versus a reported loss applicable to common shareholders of $(1,218,164) or $(.03) per share reported for the third quarter of 2004. The Company's reported net loss was substantially impacted by a one-time non-recurring finder's fee, relating to the Company's Master Distribution Agreement with Coca-Cola Enterprises, in the amount of $3,000,000, incurred during the period ended September 30, 2005.

Bravo! CEO Roy Warren said, "We are pleased with the results of operations for the third quarter of 2005, with substantial growth in revenue recognized during the period prior to our first shipments under the Master Distribution Agreement with the nation's leading beverage distributor, Coca-Cola Enterprises (CCE)."

Warren continued, "Our outlook remains positive for the full year 2005, as we benefit from full-scale, nationwide distribution and realize sales growth as a result of the Master Distribution Agreement with CCE and launch of our new Breakfast Blenders(TM) at 7-Elevens nationwide. We are aggressively pursuing the necessary drivers to sustain momentum over the next few months, including enhanced production capabilities to meet expected demand, and nationwide sales and marketing efforts."

For the nine-month period ended September 30, 2005, total revenue grew to $6,591,693, up from $2,704,992 for the same period last year, an increase of 144%. Net losses applicable to common shareholders for the nine-month period increased from $(3,173,591), or $(.08) per diluted share, reported in 2004 to $(7,748,732), or $(.09) per diluted share, for the nine months ended September 30, 2005.

Full text of the Company's 10-Q filing can be found at: http://www.bravobrands.com or http://www.otcfn.com/brvo .

Bravo! invites interested parties to discuss results of operations and recent developments, via conference call today at 4:00 p.m. EST.

To participate in the conference call, dial 877-407-8035. International callers, please dial: 201-689-8035.

[robt]

$3.25 m is a huge shortfall from Warren's recent guidance. Warren's explanation that orders were pushed back to favor CCE orders is satisfactory enough, but it still offers the question of how accurately Warren estimates the ability to execute, the production capacity bottleneck should have been better anticipated.

Still, it's great growth, and they're standing by Warren's previous q4 and 2007 numbers.

Tomorrow should be interesting. Luck to all.

[KCScott]

$3.25 m is a huge shortfall from Warren's recent guidance. Warren's explanation that orders were pushed back to favor CCE orders is satisfactory enough, but it still offers the question of how accurately Warren estimates the ability to execute, the production capacity bottleneck should have been better anticipated.

Agreed - My thoughts as well.

While it's a good problem to have, the production capacity is going to have to be increased in short term. Pushing back orders for Sam's and the other customers is not going to build the brand.

Notes from the questions:

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273,250,000 Shares outstanding with convertibles - the balance sheet has cleaned up with most of these conversions

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Announced they now have agreement to sell the Army commisaries

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Trying to get additional dairies to produce - nothing confirmed - mentioned Hood as only potential

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Concerns from one caller over competition - Nestle running as a loss leader in MN market
Reply - Not seeing as national trend / immediate consumption (7-11, C Store will offset)
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BRVO retrofitting bottle size (will have a 10 oz) to accomodate Coke vending machines
Still compiling numbers for potential sales to schools in CCE network - will have in January

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The Marvel branded slammers did not sell well in the immediate consumption space

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End of questions


This Management group seems very open and trustworthy and I beleive this to be a long term winner. In the short term the capacity issue may hinder their ability to grow.

[nberski]

HecK!

I kinda hope there is some pullback - I just collected on a load of chickens and skins - so I have some paper money to buy more stock.

The problem is that if a investinado such as myself is looken for more then that means that all the other high level thinkers have the same idea.

Babe Yocom at Babes General Store Barber College and World Discount-A-Rama sayes I should stay with chickens - but he is not my broker any more - Babe got his license taken away for brokering spoiled meat -   Heck  - David is better at this anyhow.

Most say the meat was good  and not spoiled - Babe says  just aged and not horse meat either.   

[coolwood]

 Looking solid to me.  He even addressed the stock split issue. No bad news here.

[David Randolph]

Good morning !

I agree with robt and KCscott comments.

I also think we'll have the pullback nberski is looking for 

On a superficial analysis results were below expectations. Revenues for the quarter came in at $3,245,305 instead of the $4M we were expecting.

Management gave a good reason for this: they were afraid they would not be able to meet orders coming from CCE in October, so they were building inventory and delayed some other clients orders for the 4th quarter. For the 4th quarter if I listened correctly management is expecting something like $7 to $8M in revenues, so more than double from the third quarter.

Also, there was a big net loss on the 3rd quarter, of $4,994,496, but again, $3,000,000 of these were because of a non-recurring finder's fee related to the Master Distribution Agreement the company made with CCE.

They maintained the $70 to $100M revenue projection for 2006, but they say they will update shareholders next January.

The company's biggest problem now seems to be production capacity, since there's demand for everything they can produce. They're working on increasing production capacity, talking with HB Hood that has a big plant in Virginia.

BRVO's management is not considering a reverse stock split to reduce the number of shares outstanding and get the price up, so they can go to a national exchange instead of the OTCBB. Roy says he wants to just grow revenues and obtain profits for the stock price to rise without a reverse stock split. I agree with this idea. Later, when the company gets profitable, they can reduce their share count by a stock repurchase program.

The other day I was reading that Warren Buffet doesn't have a computer in his office, or even a calculator. He says that he doesn't judge a business just by math, but mostly by thinking about the future for the company.

That's what I think on BRVO.OB. I believe one should not go deep into quarterly numbers, and realize that there's little risk with this investment, and huge potential.

Revenues will just continue to increase quarter on quarter and profits will emerge and grow.

I have a dream vision for BRVO.OB. One day I will get out of my house in Ericeira, Portugal, and I will go to the gas station to drink some breakfast blenders or a slammer. On that day BRVO.OB will be a world class corporation with several billions in market cap. That will be day where I will take my profits in BRVO.OB.

Technically the stock has supports at $0.72 and $0.66 (ascending trendline). If BRVO.OB can close above $0.80 with volume above average then I can only see resistance at $1.04, at the neckline of the H&S pattern the stock made.

Good luck to all BRVO.OB holders and others trying to get back in, this is a long term investment of the 3 Stocks on Fire Portfolio.

[JKN]

I sold most of my position in BRVO yesterday at .775, in from .63, 22% profit.  Still holding a core set of shares, I will buy back on a pullback if it comes. 

[fill_the_gap]

I plan to buy back in at the support levels on the way down.  It should get a pop each time for a near term trade.  Then the plan is to go long again before the next call.  We will see.  But heading up from here is not likely at this time.  Even at 4 million, it would have a similiar trading pattern, imho.  Great company prospect long term.  Also a nice trading stock for the bulletins. 

[joozt]

hellow,

i am looking to get in - but dont know @ which level? Any suggestions? Waiting a little more for high fifties. Or is the current level a good support...
thanks,
gtz

[don]

David posted that technically the stock has supports at $0.72 and $0.66 (ascending trendline).
Since the stock has breached both of these levels (it touched .62 today) I am hoping David will post some updated guidance. I am rubbish at TA - my own instincts told me to sell my non-core holding at .78.
So I too am waiting. Good luck! Don.

[netfishmademerich]

$0.72 and $0.66 support should be applied only to the closing price I believe.

[don]

Thanks, Fish.
I for one would appreciate someone posting what the next support levels are, on the way down.
I don't want to wait to closing to find what I should have bought back in at - if you know what I mean TIA. Don.