BRVO.OB

[don]

applaud! Good digging. Nothing new, technically nor in fundamentals. But a nice 'window' to look at how management is planning to control the risks of expansion. Overexpansion has killed many a company. I like what I am reading here;  clear, concise plans, no bs (with buzz words like paradigms and the hyperbole of the pump and dump brigade)... Don.

[David Randolph]

Today I don't have much time to do these updates, so I welcome very much the research boatguy posted  (applaud)

I'll continue holding BRVO.OB for the long term.

[David Randolph]

I read some of research piece boatguy left and was very pleased to see that BRVO.OB expects to deliver a profit in 2006, and that it expects the 4 quarters of 2006 to be profitable.

This is a big relief for me, since until now I only saw revenue projections and no profits talk.

The comparison with HANS leaves me a bit worried, it looks like BRVO in 2006 will be like HANS in 1999, and it still took 6 years for HANS to really take off. But the revenue growth at BRVO is much faster than the one HANS experienced, so hopefully we won't have to wait that long.

In the past I said:

For me to keep on holding BRVO.OB for the long term I need three things:

1) The company doesn't ask shareholders to increase the number of authorized shares;
2) Sequential quarter on quarter revenue growth of at least 10%;
3) The expectation of a profitable year in 2007.

It looks like the expectation for a profitable year came from 2007 to 2006. I welcome that 

I'm patiently waiting for the 4th quarter results and the guidance the company promised for January. I'll continue holding BRVO.OB for the long term.

[David Randolph]

Reading some more of the research report from Catalyst Research, we get this revenue projection for 2006:

«For 2006, they forecast domestic revenues of $50 to $55 million, and total revenues of $70 to $100 million which includes international sales and new products.»

International sales will be key. On the last conference call Roy said he would have the new CFO of the company update guidance for 2006, and if they move internationally or not in 2006 is still under study and discussion within management.

BRVO is a fantastic growth story, but growth takes time. I have the time and patience to wait for 16 bags, even if it takes several years. Now I know the company well enough to know if everything is on track to meet this goal. At this point it is, so I'll continue holding BRVO.OB for the long term.

[David Randolph]

I wish I had one of these for breakfast now:



I love this Breakfast Blenders product:

«New product line addresses "breakfast-on-the-go" market segment:

BRVO plans to provide additional "good for you products" with its latest Bravo! Breakfast Blenders™ product line. These were developed in collaboration with 7-Eleven, Inc. (NYSE: SE) and are to be introduced exclusively at 7-Eleven® stores nationwide. The products are designed to provide nutritional benefits for consumers who skip breakfast. They boast the nutritional claims of being lactose free, low in sugar and having 50% more protein. Varieties include Bravo! Breakfast Blenders™ Chocolate Raspberry fortified with antioxidants naturally found in raspberries and chocolate, Vanilla Peach Blenders™ containing fiber naturally found
in peaches, and Double French Vanilla and Double Chocolate varieties both rich in calcium.»

Nothing changed from a technical or fundamental perspective yesterday, here's the updated chart:

[David Randolph]

Investors seem to be waiting for the guidance the company promised for January or the next quarterly earnings release.

If BRVO delivers 6 to $7M in revenues for the 4th quarter we'll read:

«Revenues were as expected».

But potential buyers will read:

«Sequential revenue growth of 91%». If we consider the year ago levels, where BRVO got $639,000 in revenues for the quarter, they will read: «Revenues increased ten fold» 

That will boost the share price without a doubt.

I'll continue holding BRVO.OB for the long term.

[fill_the_gap]

David is correct in the correlation of pennies with the general market.  The market has been on a run and pennies become temporarily out of favor.

This presents an opportunity for the patient.

I added to BRVO this week making it the largest holding in the portfolio.

Buying ahead of forecast is the plan.  Any forecast is going to be a double digit increase quarter on quarter.

Willing to hold for the long term.  BRVO moves quickly towards 72 and 80 when a call is coming.  Maybe it will move up before the January guidance call.

We will see.  At the minimum it has unlimited potential with CCE and a Real Product.

-Jeff-

[puenthouse]

Gap, this is also one of my largest stocks by far.  I am putting alot of faith and have committed in my head that I will go long (3 years if need be) for this stock.  I am willing and have for that matter bet that no matter what, this stock will see at least .80 again.   And of course still hoping to see this at 5 +. 
I am just hoping all these small loses im encountering are just a small blip on my lifes timeline, and that this stock helps counter all of the past mistakes and poor judgment.  Sometimes its just safe to long.  LONGER IS BETTER

[fill_the_gap]

Agreed,

We all have learned many lessons as members of this forum.
Personally, I have traded too often.  Commissions and rolling the dice for a quick pop has hurt.  In 2006, I will hold longer on the companies that the range, history and information are known.  Of course, nothing is ever for sure. 

One thing is for sure.  Every time BRVO goes towards 80 I kick myself.
The last time I made a promise to myself that I would buy more than the normal % and hold it if the lower 60's came again.  Here it is.  It runs towards 80 on news of a call.  We already know this.  And selling volume has dried up.

And I feel comfortable with the hours of research David, Frederick and others have placed into BRVO. 

Following a stock long term allows comfort to know the ranges and projections.  This eliminates panic selling and compulsive buying.  The next filing should show some significant growth.

I called BRVO today and asked alot of questions.  Roy is going to get back with me on some answers and I will post them here.

They were confident in the fact that BRVO now has better exposure with CCE.  For instance, shelf space and location has improved dramatically.  Now eye level above Hersheys in the milk section here.

Most pennies are not long term holds.  BRVO is the exception, imho.

[Fré]

I read in a dutch wallstreet mailng that the best to time to play pennystocks is between the december expiration day (tomorrow) and the middle/end of january. Can someone confirm this?
Let's hope we'll experience the same thing this year .

Good luck everybody!

[fill_the_gap]

My Father is a foodservice broker and represents Hansen and others.  He gave a report from his opinion of the Breakfast Blenders.  He went to 7/11 today to pick some up for his ride to work.  There were only 2 left.  Raspberry-Chocolate and Vanilla Flavor.  They were eye level.  He likes the packaging, taste and location in the refrigeration unit.  The pricing seemed in line.  It may take awhile but he said the relationships and product make the difference.  He does not see many with the Breakfast Blender concept and can see this as a nice seller.  The Slammers are too sweet in his opinion and he wondered which product they would try to place in schools.  This guy is very critical.  It was nice to get his opinion as there are not any 7/11's where I live.

[David Randolph]

I read in a dutch wallstreet mailng that the best to time to play pennystocks is between the december expiration day (tomorrow) and the middle/end of january. Can someone confirm this?
Let's hope we'll experience the same thing this year .

Good luck everybody!

Hello Fré, I can't confirm that idea, it would be nice if we had an OTCBB index or something. I talked to Ramsburg about building one of those for 3 Stocks but he said it was impossible with our technological resources. But I bet there are penny stock indices outthere.

There are two types of market tops: a speculative top, when everybody falls in love with the stock market and get greedy. That's the best environment for penny stock trading, at the end of a speculative bubble.

The second type happens with the available pool of investors getting out of more money to buy. The weaker stocks (penny stocks) go down first, second the small and medium caps and finally large caps dive. This in general terms, of course, there are always stocks that go up.

Unfortunately it seems we're evolving to make this second type of market top and it may take a long time for pennies to get generally get back in favor.

But BRVO is different, as fill_the_gap says, I'm very glad that we have him on board again, because he works hard for information, and then shares it with us  Thanks a lot fill 

We've been talking about revenue growth on BRVO for a long time, so let me give you a chart with revenues since BRVO began trading as a public company:



The 2005 bar has $6.5M in revenues for the 4th quarter, since management estimates are of $6M to $7M. The 2006 bar is the current midpoint of the estimate from the company, expecting $70M to $100M in revenues for 2006.

This revenue expectation for 2006 can be revised lower, say to $60M. Still it would be outrageous growth.

BRVO has entered a growth path in 2004 and 2005 that won't stop. As a long term investor I hope BRVO's management can really achieve this and know how to manage growth in terms of its margins. Growth is not so good if net margins decrease. We'll talk more about that over next updates.

As for the stock price, it went down a bit yesterday and is near support levels.

[fill_the_gap]

Buying now when it is under the radar is the plan.

I will hold BRVO barring any major event.
A few quarters of results and 60 cents will look like $ 1 did with HANS.
This time I will not try to time BRVO.  The tick down is on light volume.
Next quarter should bring some interest as the revenue will no doubt me more than 3.25 million as we already know they were close to this number in a months time based on the PR.

The exponential growth story and picture are the focus.

And they are already partnered with the right people.
Test market results and public acceptance of the product is key.

But getting into more schools would be great to be first to establish a market.

Long term hold.

[fill_the_gap]

I have a call scheduled with the CFO Jeff Kaplan Tuesday.
Post any questions that you would like me to ask for you and I will post replies here.
======================================================

A reply to me from Roy the CEO about BRVO profitability is below:

QUESTIONS FOR ROY

Per our conversation:

-  During the earnings call, Management cited a call update in January to discuss the future.  When is the call date ?  What will be addressed on the call ?  Will a PR come out announcing a call ?

-  Amount of current Insider shares owned ?
   Have any sold or purchased in last 6 months ?
   Why do the insiders not purchase if undervalued at this time ?

-  How long do they project the current financing to last before another round ?

-  What is your best guess on when Bravo will be profitable ?

Thank you in advance. 

-Jeff-

ANSWERS FROM ROY

HI, I will answer what I can.  First of all, we will do an update in January due to the issues regarding CCE business growth and the capacity issue. We will announce this when we know the facts and announce the date then.


Insider shares can be found on our financials.  I think we are around 10% beneficial interest including the board.  Insider sales and purchases are listed under insider transactions under BRVO on Yahoo Finance.  Insiders are not traders.  We work for the company and part of our compensation is stock options.  Our goal is to build shareholder value, not really to trade the shares. We have a 6 month swing rule which means if we buy, we can not sell for 6 months.  Management will buy when they feel appropriate but you must realize that Bravo is already a very disproportionately high piece of our net worth.


We would only raise additional money in 2006 for some extraordinary deal ( acquisition or such which we have no current plans to do).  We have plenty of cash now to carry out our plan as we see it now.  I believe we will reach cash flow break even during Q2 but time will tell.  We don't have a good handle on the costs of the ramp up in sales with CCE and the costs of the new marketing and capacity due to some unknowns but I am comfortable that we get there in Q2 as indicated in our last call.


Hope this helps. rgW

[echo]

fill_the_gap,

thank you very much for all the work you've done here. Its great that your posting these answers from the CEO. Where els would get info like that if it weren't for you! Thanks again.

It seems that 2006 will be a good year for us BRVO holders. We should start seeing the stock move in January when this news the CEO said will be coming out. We shall see if the market agrees.