BRVO.OB

[Fré]

Bizarre trading on Level 2 to say the least.   

Can you explain what happened?

[fill_the_gap]

Fre,

I have no idea which way it is headed.  The trading has been unpredictable.

Guess is the same as before.  The people that did the funding can play with the price.  They can make money selling short and going long with BRVO shares.  All the while they are hedged with the initial purchase at 50 cents.  This is how they make alot of money.  And this is why the public is hesitant on private placements.  The PIPE article explains what kind of players are in this arena.  No restrictions are on the shares for selling and/or shorting.

Many questions that still may not be answered after tomorrow.  We need to see the results because they can say whatever on a call.  And they missed the past 2 quarters so trusting the management is also an issue.

[don]

asked Jeff K for info about shareholders like Alpha Capital, are they still there: his answer was,
we do not comment on our shareholders except as required in SEC filings..
I accept that position. But, I would sure like to know who they did the Dec 2005 PIPE with. Why are there no details  disclosed, at Yahoo Finance, re: Major Holders? Is there not some legal obligation to disclose to whom you have sold such a large % of shares to? Don.

[don]

I would appreciate if someone would post what the stock 's technicals indicate....that is why I am here!! It is all very well for fellow 3SOFclulbbers  to posit - which way will it go? What I want are TA opinions.
As a fundamentalist: here is my take on the CC.
Remember to do your own DD!!
As a fundamentalist, I liked what this call told me. Quick recap as to why I am buying, if I can get it at bargin (my spellchecker needs to be replaced?) prices (remember, I value it at .6o cents, since it was PIPE'd at .50 and it was warranted  at .80).
its midnight, so I have to be brief:
listened to the cc: very impressed with the candor displayed in the responses. No flimflam noted.
New news:
1. Capacity will continue to be,probably, their biggest restricting factor to growth
2. talking to Hood, nothing firm but 'we are moving on down this road'.
3. new Federal approved dairy filling plants will be coming on stream in early 2007 (= new sources of production) ;
4. BIG news is a new license to use the Snickers franchise. As Cliff put it, this is one of the most recognized major taste franchises in NA.
5. Revenue guidance for Q4 2005 , not discussed, yet I noted, according to my notes a remark that stated:
that Q4 2005 should be $6-7 mill.
6. Revenue guidance for 2006:  now refined, at 70-80mill.
May lay off international (UK/Mex/Arab) sales expansion efforts. Why? no capacity, so why waste resources.
If Domestic (US + Can) do not top out, revenues could reach 70mill. 
If do top out, 100mill.
7. End of Feb, 2006 we will  get more accurate/BOD approved revenue guidance for 2006 plus early estimates for 2007.
8. to discover a discussion of what appears to be impressive (within 60-day results) store penetration levels, in Florida by CCE, listen to the cc. Don.

[fill_the_gap]

I listened live and something to note was in the question and answer portion.  Someone asked if Hood was factored in to the narrowed guidance.  And Roy said it is sort of factored in or something along those lines. 

He did not say how much of the guidance factors in Hood helping with capacity.

Roy is the king of overpromising and underdelivering.  In this case, if they factor alot of hypothetical revenue in a Hood deal and it does not come to fruition, then the forecast is again too high.  I would rather them be realistic and then come in in line or better than expected. 

I am not in BRVO at this time and will not buy until they prove the talk with real numbers.

Plus, they will need future financing as all of the shares have been used in current deals.

[David Randolph]

Technically BRVO.OB has an important support at $0.52 and an important resistance at $0.73.

I didn't listen to the conference call but I'll do it by night. Then I'll decide to buy at support or not.

I'm glad that apparently they didn't discuss the number of authorized shares and that they kept the revenue guidance at about the same place. Any talk about profits?

Thanks !

[don]

Technically BRVO.OB has an important support at $0.52 and an important resistance at $0.73.
David, Thanks for that - very, very useful.
Any talk about profits?
My notes show Jeff Kaplan commenting that:
2nd half of 2006 will be cash flow positive;
Q4 2006 is forecast at $25mill. (his words: Q4 2006 annualized will show revenues at $100 mill.)
In an earlier conversation, he commented that, since the companys financial presentation shows some of what could be classified as direct costs below the gross margin line, it would make sense to value the company on a stock price/sales multiple. I know, you get the same net, regardless of where you put the direct costs. But for my own reasoning, I do anticipate the company will be valued on this same basis by the market. Don.

[don]

After reviewing 3 pages of notes I made on the conference call, I have updated my valuation work.
OVERVIEW:   I value this stock at a range of $1.00-1.20 call it $1.10
This is an unscientific mixing of my  2006 and discounted 2007 stock valuations,where I used  2 valuation methods, PER and P/S.

                                                                           12mos 2006 new  12 MOS 2007
                                                                              LO      HI              LO              HI
SALES                                                                    $70      80            100            170
GP % 27
GP $                                                                     18.9      21.6           27.0           45.90
SGA                                                                      14.0     16.0           18.0             20.0
EARNS                                                                  4.9        5.6            9.0              25.9
EPS*                                                                  $0.0179  $0.0224    $0.036         $0.10
PER 40 implies a stock price of                              $0.72   $0.89          $1.46           $4.00

I do not like doing a valuation using PER.
It looks awfully high.
I would rather use PEG.
Which, I suspect, because of the extraordinary growth which I am estimating, would probably give a similar stock value to the ones above. But I still do not have the time, right now to do a PEG based valuation for the 4 revenue scenarios.
Assumed: share cap issued is 250million
P/S method:
If sales in 2006 are 70 mill, price to sales is 3.5 stock value is 245 mill /250mill shares =  $0.98 per share.
If sales in 2006 are 80 mill, price to sales is 3.5 stock value is 280 mill /250mill shares = $1.12 per share.


Incidentally, Bravo says that they will complete their updated 2006 operating budgets and their preliminary updated 2007 revenue forecasts within the next month. Consequently, when that information is published, if it bears out what I am forecasting, I would imagine the stock price will rise to reflect it. Of course, who knows what valuation base the market will give to those 2006 and 2007 revenue and profit numbers! Don.

[don]

I just received Roy Warrens answer to my question;

the Snickers deal with Mars/Masterfoods in in process, the flavour developed by Bravo has been approved by Mars, but the paperwork will not be  completed for a while. As a consequence, they are being cautious about issuing a NR until the t's are crossed, etc. I regard this as a major deal to have been landed. Can you imagine what would have happened if Nestle had grabbed this taste franchise first??...and I anticipate that once the NR is released, it should attract a lot of (good) publicity. The key area which is unresolved, continues to be plant filling capacity. Don

[la-onda]

www.streetinvesting.com: Begins Research on Bravo! Foods International Corp.
Friday , January 27, 2006 03:28 ET

Jan 27, 2006 (M2 PRESSWIRE via COMTEX) -- Streetinvesting.com has recently placed Bravo! Foods International Corp.(OTCBB:BRVO) into our, "Stock of Interest" portfolio; after taking note of recent elevated corporate activity this week despite share prices falling over 5% Thursday. After taking note of this and reviewing the explosion that share prices exhibited at the beginning of summer in 2005, our research team has begun phase one of its examination and have decided, to follow the Company's progress through the summer of '06. Streetinvesting.com strives to bring true growth opportunities directly to its valued subscribers. Our strength lies in finding these undervalued and under-marketed companies and delivering our research in a timely manner. Streetinvesting.com will be tracking this company attentively for the subsequent weeks and keep interested investors and shareholders posted on any new findings and behind-the-scenes update. For a complimentary and comprehensive report on our current analysis and opinions, please visit www.streetinvesting.com for a free membership subscription.

Bravo! Foods International Corp. has become a leading brand development company by bringing to market products that are a surprising, nourishing experience. The Company currently licenses, markets and distributes products throughout the United States, Puerto Rico, the U.S. Virgin Islands, Mexico, Canada, Great Britain, and the Middle East.

Bravo! is expecting to secure a primary position in the $2 billion single-serve flavored milk industry with its, "Slammers" brand. One of the Company's key strategies is to lock licensing agreements with established food sector giants including; Masterfoods USA, the confectionery and the snack food division of Mars Incorporated. Once, and if this is achieved, the Company hopes to produce, market, and sell Slammers, Milky Way reduced fat chocolate milk, Slammers 3 Musketeers low fat chocolate milk, and four flavors of Slammers Starburst fruit & crme smoothies.

In addition, the Company has a licensing agreement with Marvel Enterprises Inc., to utilize its world-famous Super Heroes as product ambassadors for its Ultimate Milk Slammers. Some of these characters include the widely known Spider-Man, Wolverine, Incredible Hulk, Daredevil, Electra and Captain America. Bravo! is also building its Slammers brand with non-licensed products, including Pro Slammers flavored milk, "slammed" with double shots of protein and Slim Slammers with 1/2 the fat, carbs and calories of other flavored milks.

Bravo! has also been successful in securing a licensing agreement with MD Enterprises to produce Moon Pie flavored milk.

Currently Slammers can be found at 30,000 retail and convenience store outlets nationwide. Some of these chains include the popular; 7-Eleven, A&P, Associated Grocers, Bi-Lo, Bruno's, C/S Metro, Dutch Farms, Giant Food Stores, Jewel, Mars, Pathmark, Piggly Wiggly, Ralphs, Safeway, Sam's Club, Shaw's, ShopRite, Speedway SuperAmerica, SuperTarget, Unified, Waldbaums, Walgreens and White Rose chains.

The company feels its future opportunities have been....
To continue with the more in-depth analysis, please visit www.streetinvesting.com for a complimentary subscription to access this report and other related articles.


anybody is a subscriber?

nice rebound today!

[bw6458]

Thanks for this little infomercial on BRVO.     The pop in the stock is probably coming after this announcement was released... I hope they have a loyal base    that can trigger some movement and excitement for Slammers... 
I am in at $.52 in one account and .65 in another.  I got caught up in the October excitement... I will hold for now.

Let the dice roll

[boatguy]

I went to our local BI- LO store in Charleston and discovered they have stopped selling Slammers. They used to take up more space than any other flavored milk and sold all flavors. Couldn't find out any info as it is Sunday.

Not in now but watching.

[irod]

Same here. Gone at my local Safeway. Used to have tons of 3-packs and singles but now everytime I go, there's nothing. Same thing at my neighborhood gas station. It might be due to their supply problems.

[stocky]

I could not find any at Ralph and walgreen at my local stores. I dont buy that there is so much demand that they can't meet that. Infact there are lot of other products. I am curious just whats going on.

[fill_the_gap]

I checked all of middle Tennessee for the product.
The only place that has it is Walgreens.
All they have had for months are the Starburst Slammers on the 2nd from bottom shelf.

These Slammers are too sweet for me and not healthy enough for my kids.

I e-mailed Roy and he said that Kroger carries the product.  I asked him where and he could not tell me which stores.  But he said my city has it for sure.  I checked 13 Krogers in my city and the surrounding cities and None have it.  The managers also do not know of it   

This bothers me that they advertise it being here and it is not. 

The guy on the conference call expressed the same concern in California.