BRVO.OB

[Terliso]

Unfortunately I didn't receive any BRVO products, but I've just changed address, maybe that's why  I guess I just have to go to the US to taste slammers ... or else, wait a couple of years 

The stock is coming back after the «sell the news» of the earnings report. As we've analyzed, news wasn't bad as it looked on the surface, and I expect good things for the 4th quarter and beyond. Not only because of the CCE master distribution agreement, but also because the company was already experiencing fast growth even without CCE.

Technically, a close above $0.80 would be heaven, as it would be a confirmation of the new higher highs, higher lows pattern.

I see a lot of transparency in the words and actions of BRVO's management. I'll continue holding for the long term.

David, I can send you slammers if you want... (for free 3 months membership of ur webite) ha ha ha...

[bw6458]

      MILK WITH AN ATTITUDE 
Tradeshow exposure will lift the convenience store interest in Slammers... once again production will be a key issue..   http://biz.yahoo.com/prnews/051118/flf007.html?.v=33

Racing community exposure will help once the kids catch onto the tastee treat in Slammers. http://www.slammersracing.com/

PPS Back up to before earnings release ... volume still extremely light.

Nothing but BLUE SKIES

[David Randolph]

David, I can send you slammers if you want... (for free 3 months membership of ur webite) ha ha ha... Cheesy Grin Cheesy Grin Cheesy Grin Cheesy Grin

Thanks but no thanks Terlisa, I prefer to use that as an excuse to travel to the USA 

Nice picture bw6458 

Yes, volume is on the light side, as BRVO has recovered from the post earnings release sell-off, as expected. The stock will probably continue trading between the ascending trendline and the $0.80 short term resistance level. For today support will be standing at $0.69.

I will continue holding whatever happens. Each quarter will bring higher revenues and probably profits.

[David Randolph]

It looks like the CEO Roy Warren gave 50,000 BRVO's shares to charity. Now he has "only"  3,281,765 shares.

And people in Europe say Americans are all about greed and wealth. If I gave about $35,000 to charity now probably I would be called insane by my family  Here, people who are poor expect help from the government, not from other individuals.

BRVO.OB declined about 5% yesterday, and it is building a bullish pattern. I see the stock trading between the ascending trendline and the horizontal resistance of $0.80.

The ascending trendline for today stands at $0.66 (new trendline after a chart clean-up - sometimes one should do this). After this consolidation phase and before the 4th quarter earnings release, I see BRVO breaking $0.80 on the upside and that would give us a technical target of $1.

So, my expectation is for BRVO to continue trading between $0.66 and $0.80 for some weeks to come and then break $0.80 towards $1. My expectation is based on technical and fundamental reasoning.

[don]

David I do not know how you do it! . I had found that this thread has narrowed in scope considerably. Recent weeks have seen it limited to posts of news releases and David explaining why it is a great hold. I missed the trading and technical banter that we had, because I am rubbish at technical stuff, but I can and do trade a few thousand here and there, based on my reading of what is happening to the fundamentals and market psychology. And there you go - all your posts are useful, but your latest is bang on the target - great, useful, solid, well thought out, informational post. Thanks a million, as the Dubs say.

At the risk of boring y'all, here is my BRVO history, maybe someone will  learn from my mistakes and good fortune! : I bought 10K at .35, 3 years ago. Added 20K this year. I traded in and out. Made about US10K. But, even though I read David's predictions, as a guest, I didn't buy it. So, with some subsequent averageing down, my average cost of my core (or investing) holding is 30,000 @ 89. In addition, I bought 10K for trading at 60. Sold at 78. Bought again at 67, which is where I sit right now with my trading holding. Unlike David,. I want to trade that 10K and add to my core holding with any trading profits I make. Consequently, with Davids portfolio strategy, he has to stay fully invested in his BRVO holding. My trading strategy will continue to be, trading in; then selling off 10K  every time I see a 10 cent profit (= US$900 net of commissions).
Totally unscientific!
Where I have made my most common mistake, is when any stock I own does take off, I do not have discipline to set a price target to sell at - and stick to it. I would like to use stop loss orders, to protect my profits...for my entire holdings - but I cannot do that with TDW, on OTC.  (My bank is Canadian, so I don't want the hassle of changing brokers).
My rule of thumb at taking profits: It does depend on the amount of capital you have invested. E.G. I drifted into the trading habit of buying in and out of 2K shares of BRVO at 90 to 1.15 range. I found myself taking individual profits of $200, less commissions of $85. So my net profit % was, like 5%...It was crazy - I was staying up way too late in to the night and taking on a lot of stress. Hence, I switched to a larger trading capital (10K shares) and an absolute dollar amount of profit, I need to see, before I will take it.  Call it $1,000. Which is working out at 10%.
The difference is that the commission 'bite' is a significantly lower %. 
Mistake: I had a book profit of 1,000, at 78 and I did not take it. Some friends coming by, some wine and I stayed off the computer. 
Then I forgot my trading plan. Did not correct the mistake.  Living in the SE Asia (12 hours ahead of NY) and wanting to have a home life; this was another one of those points in a life, where I  had to decide between quality of life and profit. Hell, it was a good mistake.
So -  let us see some ideas/opinions/trading of information, please. If I were David I'd get tired of being the only worker on this thread. Oppps, there, I've said too much! Good luck to all. Don.

[don]

close 2 real time quote:
latest   0.73    
+ 0.015     
vol. 312,305           
Bid Size    25    Ask Size    25    
Day High    0.75    Day Low    0.71    
Open    0.72
This looks like a decent opening.
The Trend Line, so I understand, is getting close to .66 and there is a 38.2% fib retracement at .67 so we at least have good support there. It appears that today activity, so far, indicates that there is good support at .71 which is just above yesterday's  low of .701. Hoping for everything, expecting nothing. Don.

[David Randolph]

Hello don 

Thanks for sharing your experience with BRVO.OB. I believe the stock will reward you for that 3 year wait.

Your commissions are pretty high, don't you think? But I understand that sometimes it is difficult to change brokers.

Considering BRVO, today was a day with no news and no new technical developments. Volume was on the light side. The ascending trendline now stands at $0.665 and the horizontal resistance  is at $0.80.

Penny stocks are completely out of favor now, I hope the market considers BRVO.OB as a «different» penny stock. At least in BRVO.OB we know there won't be much more dilution, since the number of authorized shares is 300 million.

I'll continue holding for the long term.

[fill_the_gap]

At least in BRVO.OB we know there won't be much more dilution, since the number of authorized shares is 300 million.

David,

Any idea of how they will structure the needed financing ?
From the conversation with IR:

BRVO has alot of expenses to consider.
The are responsible for advertising in the CCE deal.
And they are paying alot of money to ramp up the Missouri production facility.
Remember, the CCE money (warrants) are on the side lines indefinitely, so BRVO needs financing to move forward.

[don]

Reply #879. I neglected to give credit for quoting TA provided by Basonista. Thanks for sharing! Don.

[gmarc66]

So what will this do to the pps friday?

2005-11-23 16:53:16 
Bravo! Foods International Enters Into Agreements for $20.25 Million Private Placement of Common Stock 

NORTH PALM BEACH, Fla., Nov. 23 /PRNewswire-FirstCall/ -- Bravo! Foods
International Corp. (OTC Bulletin Board: BRVO), a brand development and
marketing company that manufactures, promotes and distributes fortified,
flavored milks, today announced that the Company has entered into definitive
agreements for $20.25 million in equity financing through the private
placement of 40,500,000 shares of common stock to a group of institutional and
accredited investors. The net proceeds to the Company after payment of
transaction expenses will be approximately $18.9 million. The Company also
issued to the investors warrants to purchase up to an additional 15,187,500
shares of common stock exercisable at $.80 per share. SG Cowen & Co., LLC
acted as the exclusive placement agent for the transaction. The closing and
funding is scheduled to occur early next week.
The proceeds from the financing will be used for increased production
capacity, the launch of marketing campaigns, redemption of 30.3 million
warrants, paying the finder's fee relating to the Coca-Cola Enterprises Inc.
Master Distribution Agreement and general working capital purposes.
The securities issued in the private placement have not been registered
under the Securities Act of 1933 and may not be offered or sold in the United
States in the absence of an effective registration statement or exemption from
such registration requirements. Pursuant to the terms of the purchase
agreement, Bravo! Foods International Corp. plans to file a registration
statement with the Securities and Exchange Commission on Form SB-2 within
45 days of the closing of the transaction, registering the common stock and
shares of common stock underlying the warrants for potential resale.
About Bravo! Foods
Bravo! Foods International Corp. (OTC Bulletin Board: BRVO) develops,
brands, markets, distributes and sells nutritious, flavored milk products
throughout the 50 United States, Great Britain and various Middle Eastern
countries. Bravo!'s products are available in the United States and
internationally through production agreements with regional aseptic milk
processors and are currently sold under the brand name Slammers(R).
Many of Bravo! Foods' Slammers(R) lines of shelf-stable, single-serve milk
drinks are co-branded through exclusive partnerships with Masterfoods, a
division of Mars Incorporated, Marvel Entertainment and MD Enterprises (Moon
Pie(R)), providing superior name recognition packaged with quality,
great-tasting drinks.
Slammers(R) are now available at more than 30,000 stores nationwide,
including such popular chains as: 7-Eleven, A&P, Associated Grocers, Bi-Lo,
Bruno's, C/S Metro, Dutch Farms, Giant Food Stores, Jewel, Mars, Pathmark,
Piggly Wiggly, Ralph's, Safeway, Sam's Club, Shaw's, ShopRite, Speedway,
SuperTarget, Unified, Waldbaums, Walgreens and White Rose.
For more information, visit: http://www.bravobrands.com or
http://www.otcfn.com/brvo.
Contact: Roy Warren, CEO Bravo! Foods, 561-625-1411 or James Dryer,
Investor Relations, 561-837-8057 or [email protected].

[rickjust]

hi david,
with regards to selling all the pennies , will brvo be another stock that could possibly drift down and change trend . it seems now the initial excitement has worn off this could drop below .60 again.
thanks
maxi

[fill_the_gap]

The price will gap down Friday AM as it did post earnings, imo.

The amount of shares is less than if CCE had taken 51%.  That said, it is worse for us shareholders for CCE not to have the shares.  Even though the number of shares are higher, We want CCE to have them because they will not sell them.

You see, CCE was not going to sell to the open market as these people will.
CCE would have held then Entire stake to make sure they had the 51%.

We now never know when shares will be dumped to market.

Most people who do this type of financing are not in the business of investing.
They already are in the money on the shares.  So selling gets an immediate return.
BRVO gets the financing, they get the money and all are happy. Right? Wrong.
The share price will suffer.  Any rally will be hit with a ceiling. Remind you of EYII and some others.
Advances are crushed creating more bagholders to sell again on any pop.

This cycle will end when the shares are all gone.  (but how can we be sure?)
And hopefully, the margin is great enough that BRVO will not need future financing.

Some have the opinion that private placements are not good.
It depends on who it is with.

Picture this scenario.
They can now leverage to make money by short selling shares.
A long position protects them.

When the price goes too high, they sell and vice versa.

Here is an explanation I recently came across.

This is all hypothetical.  I want BRVO to move up but am evaluating all scenarios.

* It still is a mystery why CCE did not take 51%
Perhaps, CCE knows the company is valuable but share price will be diluted.

====================================================

The copied post below about another company may have nothing to do with BRVO, but it sure got me thinking about how the big boys make money. 

A new range? I don't really think so. It is a positioning thing imo.

The bucket boys were short $2.23 when the was announced. They shorted into what was an advance to $2.23. They pounded it good and took it to $1.20. They kept the short and bought long $1.20.

The spread or difference between the two made $1.71 the mid point price. That is where they have set new shorts. If you look at the volume history at that price, you will see what I mean.

They have accumulated enough long to free wheel. In effect, the short is not dependent on the core position. That would be the Soros shares at $.73.

If you use that number in the computation, $2.23 best short, .73 best long, you arrive at $1.50. They buy below $1.50 and sell $1.50. The $1.40 you mentioned is where they want it. They can make a nickel or dime on all the trade. They can use the $.73 number for basis because they have insured themselves with long accumulation.

I place the new protected zone at $1.63 top for short. You might remember in the past I had said; buy $1.50,51,52,53,54, and stop. The stock was $1.70 or so at the time. It came down quick to that zone.

$1.40 represents the discount and profit. $1.50 is the more relevant price. They do not buy $1.50, they sell.

The price is contracting. The short position has been on and off of the reg sho list. However they have maintained that short. I believe they will hold it till the end.

Why not. Those shares never existed in the first place. If you can make 1.5 to 2.0 million on something that does not exist, well....

No cover. More short if they can manage it. If they can run the price down, they get richer. The divi pays in shares.

I expect a pump and a monster short attack. It hit $1.35 recently. They need to sell some before the dump. When they finish, I expect a plunge. They will accumulate the new low and improve the basis lower.

I doubt you will see anything converted. They have control through the preferred. They are better served by an instrument that represents the common. The common loses value. The preferred is protected by covenants. The lower the common goes, the better for them.

The company is valueable. The common is not. They want the company. I think it goes toxic and they win big.

All my opinion.

[la-onda]

Bravo! Foods International Enters Into Agreements for $20.25 Million Private Placement of Common Stock 
WEDNESDAY, NOVEMBER 23, 2005 4:53 PM
- PR Newswire
NORTH PALM BEACH, Fla., Nov 23, 2005 /PRNewswire-FirstCall via COMTEX/ -- Bravo! Foods International Corp. (BRVO) , a brand development and marketing company that manufactures, promotes and distributes fortified, flavored milks, today announced that the Company has entered into definitive agreements for $20.25 million in equity financing through the private placement of 40,500,000 shares of common stock to a group of institutional and accredited investors. The net proceeds to the Company after payment of transaction expenses will be approximately $18.9 million. The Company also issued to the investors warrants to purchase up to an additional 15,187,500 shares of common stock exercisable at $.80 per share. SG Cowen & Co., LLC acted as the exclusive placement agent for the transaction. The closing and funding is scheduled to occur early next week.

The proceeds from the financing will be used for increased production capacity, the launch of marketing campaigns, redemption of 30.3 million warrants, paying the finder's fee relating to the Coca-Cola Enterprises Inc. Master Distribution Agreement and general working capital purposes.

[boatguy]

On the surface it is dilutional but in the long run this may work in our favor.

Any other comments on this PP?

Good post from RB-

Forced converts, redemptions, and figures

It appears there are at least 30.3 million shares underlying convertibles/warrants that can be redeemed and that Bravo intends to redeem.

Given that the 30.3 mil callable warrants represent convert-notes in the sum of approx 3.2 mil, bravo could buy them back for under 4 mil. That would be a marvelous move given that they have just placed 40 mil shares at .5 and 15 mil warrants at .8 In effect they would have presold the 30 mil redeemable 10cent warrants for 50 cents for a nice 12 mil gain.

BUT. Can bravo really redeem them?

Looking at a couple of the warrant agreements- it appears
1. Bravo has to issue a Redemption notice.
2. Pay somewhere approx 125% of the note's value.
3. Allow 30 days during which the warrant holder can elect to convert.
4. Nothing stops the conversion except that the holder may not own more than 9.99% of the Outstanding shares at any time.

So, if any convert-holder wants to convert at the 10-20 cent price, and has problems because they are topped out at 9.99%, they will probably sell some at current prices (if they haven't already) so that they can convert the rest.

My guess is Bravo won't be able to redeem a single warrant.
However, they can force conversions now so that
1. We create maximal dilution at this price level, so that there isn't an overhang in the future.
2. We avoid paying interest on those convertibles.
3. We create a base of long-term holders and a solid price bottom since folks who convert but don't want their money locked in non-interest bearing stock will flip their shares.

We could see a few million shares coming to market.
Short-termers who don't want their capital locked up will add to the price pressure.
Real long term holders- those holding for a few years out- will buy.

As of aug 30, The Company reported 141,253,757 shares of common stock issued and outstanding and 270,384,233 shares of common stock on a fully diluted basis. Diluted share base using the treasury method is approximately 230,000,000.

Bravo has now sold shares and issued warrants for an additional 55 mil shares at a blended price of .58. Interest free as opposed to interest-bearing convertibles.

Presumably 285 of the 300 mil shares will be in the float within the next 30 days- except for around 10 mil perhaps.

Evidently all those broker meeting bore fruit- of course, one might look askance since Bravo did say it was going to pursue non-dilutive financing. I guess they meant 'after' they had completely diluted to the authorized limit.

Now, what's the bad news?
I can't see it. A lot of people here were unhappy that cce was going to get 80 mil shares at .17
They finally got 30 mil at .36
The other 55 mil has gone for a blended price of .58

Some say that CCE would have locked away those shares and so that would have been better. Less in the float. Artificially inflated eps. But really, fully diluted metrics are much better.

So now we have 290 mil shares out, 70-100 mil in revs for next year and 180 mil revs in 2007.
At this year's 13.2 mil revs, using a 6x multiple we have 80/290 or .27 pps. Yet the market is looking forward.... we just sold a sizeable block at .50, no?
At a 6x multiple of 2006 85 mil revs, we get 510/290 or 1.75pps.

Basic point, Bravo is in a very good position going forward. So are we.

[fill_the_gap]

IR threw out 4 million for last quarter, they came in 3.25.  Confidence in what they say is now suspect.  The company should do well, but the share price ?  Projections mean nothing if they overpromise and underdeliver.

Again, makes you wonder why CCE backed out of the initial 51% ownership ?