BRVO.OB

[Romantic_lead]

So let me get this straight.  After the news of coca cola this is what you stated:
"Thanks for your comments

Like I said I think we'll see $5 in BRVO before this year ends, but I wouldn't be a fresh new buyer on a big news day like today. It just doesn't fit my strategy.

I hold my position since $0.26 (well, I took profits at $0.69 and was lucky to have the chance to get back in at $0.67) and I'm not selling today. But I won't buy more (the stock is already my biggest holding in $ terms).

Look to buy on pullbacks in bullish trends, not when we get a big gap up because of news.

That said, I maintain my $5 dollar target.

Good luck !"

Yesterday it was a $5 stock but today you are out ?

[Irishman]

FWIW-
I think fill-the-gap's analysis is bang on. Let me point out a few things while the dust begins to settle.
1) There is no way- let me repeat that- NO WAY that CCE's initial offer will be the final offer. Management did the smart thing ( which is exctly what you would expect from this group) and brought in the pros (Bankers) to advise them on this deal. I would not be surprised if their next step would be to bring in some Wall Street folks. That would be the REALLY smart thing to do.
2) Management owns 6 million plus shares. How do they benefit if the share value hovers around
$1? Is not their greatest incintive to grow the share price?
3) CCE needs this deal as much as BRVO does. Pepsi is already in this market in a big way, and CCE needs BRVO and it's products to stay competitive.
4) The bottom line is, was, and always will be what are the sales and growth forecasts. The answer to that  seems fairly obvious to me.
This is a long term play, but as good a one as I have seen for quite some time.  All the best.
Irish

[David Randolph]

Fundamentals changed, I changed my opinion. The stock market is dynamic and I have to change with it to keep performance rising.

Yesterday I wasn't fast enough to perceive all implications of this deal with CCE. Yet, I started buying this stock at $0.26, so I got an handsome profit.

Anyway, I was very sad to sell BRVO, but I can't keep a stock when there is the possibility of a 30 or 40% fall from current levels. It doesn't mean, in the future, it won't be a $5 stock. But it will be much more difficult due to this deal, in my humble opinion, it will take a lot more time, because $5 with the number of shares outstanding that's coming will be a much bigger company than it would be in the past ...

I don't know if I can make myself clear, but I had to sell and I don't tell anyone to follow my analysis, I just do this: analyze, buy, explain why, sell, explain why, so you people can learn the game, from my successes and mistakes. I'm no pool manager, for that, sometime in the future, perhaps, I will create an hedge fund or something like that.

Good luck !

[starfire]

I am still long on BRVO, at least till the deal is closed or 2Q CC! of course that means I am not following any trading rules of thumb or for that matter of fact I will have cash for future trading. How ever my position can change anytime.

David, you are right in saying that with 300M outstanding and 150M in float, the company has to become that much larger to attain $5 per share value which could take time.

However keep in mind the following:
1. CCE's clout can make Branding of Slammers more broad and deep.
2.CCE's distribution can enable RAPID market penetration i.e the company can grow rapidly. The market size is 2B and BRVO has less than 1%. Besides CCE services 2.4 million vending machines
3.CCE's majority participation can enable BRVO to access NASDAQ quicker
4.The investment bankers analysis could attract a lot of instutional investors. I bet they come out with some price range for BRVO. And finally
5. Slammers could become a household brand just like Coke!

Bottom line, it appears fundamentals has changed but it has not changed drastically. JMO

[boatguy]

Just dumb luck!!

I set my stop price this morning at .83

Only thing was I set it as a LIMIT order without realizing it, out at 1.05 by accident.

Waiting for things to shake out before re buying.

Dumb mistake, lucky outcome. Wish it happened yesterday!! LOL

[netfishmademerich]

7) BRVO will issue a lot of new shares to make this deal. The number of shares outstanding will grow from 63.49 million to 213.49 million shares.


So the outstanding shares will increase by a factor of 3.36, but what will the growth rate increase by?

[spalooky]

I called the company and talked to the CEO. I told him I was confused and didn't understand the market reaction.

He said the market doesn't understand what an opportunity this is for brvo and its shareholders. He said to get Coke's distribution channel and marketing muscle, we had to give them some cheap shares. He said if it was a buyout at this price that would be different, but shareholders get to go along for the ride with CCE doing a lot of the work.

He said they weren't going to build up the company only to see it get sold to Pepsi.

We'll see how this shakes out, but as for me, I added shares today.

[aitech61]

spalooky, I also communicated with the CEO as well. I honestly think this deal will be a win win situation for both Bravo and Coke. Like I mentioned on the Raging bull. I believe this could be the making of a perfect storm in stock investments. We are at the bottom of something huge in the making... We are at the bottom in shareprice, the bottom in market share, the bottom in product market. What I mean by bottom in product market relates to milk. I think flavored milk today is what energy drinks were several years ago. Now look at energy drinks... I believe milk will become more and more popular going forward with the awarness and more health conscience our society becomes...

I agree with your sentiment. The CEO's main priority is to grow the company and improve shareholder value. That is where his fortune is to be made I might add. He doesn't command a high salary... I have communicated with Mr. Warren several times and he has always been quite informative..

I added today in the first dip at 84 cents. I have a growing position and plan to add in the future........

[David Randolph]

I'm not long term bearish on BRVO, just short to medium term. The stock has less potential now in my opinion, and market reaction to the news is telling that.

If you go read this thread, the entire thread, you'll see my reasoning for buying was that the company would sell it's products worldwide. This news doesn't add nothing new, just a lot of dilution, to my expectation (and probably many other investors expectations - that's why the stock came from a low of $0.10 to a high of $1.42 in 4 months).

I thought BRVO could do it alone, without this major sale at very cheap prices compared to the market price.

I don't know about you, but I never saw a CEO not telling bullish things about his company.

I have no interest in this stock now, I guess if it breaks badly a lot of people will panic and there will be a gap down to the $0.50's or something ... then the stock will probably bounce, but there will be a cloud of bagholders around $1 and it will be difficult to rise above that level without major fundamental changes and big institutional buying.

With 213.49M shares outstanding, at $2 the company would be worth about $427M. They sell their product at 1$ with about 24% margin, so they profit about $0.24 per unit sold. For BRVO to have a multiple of, say, 15, it would have to profit $28.46M a year. So it must sell $28.46M/$0.24= 118,611,112 slammers a year.

What do you think, is this a lot, is this a few?

I have no interest in talking bearish about this company since I love the product and I believe in the future growth of the company ... but what management did to shareholders with this business with CCE ... was not pretty in my opinion. I see a cloud of bagholders above current prices, I believe panic will come before any meaningful advance.

I'll shut up about this stock now, I hope I'm wrong and wish the best luck to the people owning BRVO !

[ehos]

Only in penny stocks would Coke's involvment with BRVO cause it to tumble.

The owners, the guys that founded the company, watched it, made it grow.  And put WAY more blood sweat and tears into it than any of us.  IF THEY are willing to sell their shares to Coke, then I'm 100% sure it's a good move.

I'm putting my faith in them, just like I did when I bought the shares.  Now, I'm sure they know what they're doing (before and now).   On top of that, Coke, THE large cap gets involved, I'm sure they know what they are doing.

Combine the two, and it's a major good news for BRVO.  Like I said, only in the penny world would people dump on this news.

Maybe it is profit taking, because Coke's involvement is still uncertain.  But this deal gives BRVO much more legitamacy than they had when they went from pennies to 1.20

People can sell for their own reasons.  I respect David for saying he made 55% and he's taking that off the table.   Make up your own minds and don't contribute to the panic.

If you feel BRVO treated you well before and believed in the owners, keep the faith and look at the numbers.  Coke just pumped 38 million into this penny.

[stocky]

Warren Buffet is fond of quoting his mentor Bill Graham [right, or seems like I forgot his name  ]  as follows:

"Market is a voting machine in the short run and weighing machine in the long run"

I hope this may explain something about the current BRVO situation.

[goformoney]

This is what I understand after reading the press release many times

1) 12 shareholders sold their options and warrants to CCE. CCE can exercise at a price of 0.36/share but it doesn't mean the 12 shareholders sold it at that price

2) If CCE doesn't exercise the options and warrants, it won't affect the number of outstanding shares.

3) Since CCE doen't want to take over the company, they want to use the 23% stakes to help negotiate the master distribution agreement.

4) In light of the 80 millions share of direct purhcases, it is still under negotiation. This is not a done deal or may not happen. It all depends on how generous an offer CCE is going to offer.

So In fact, after August 31, the valuation of the stock may remain the same but it may expedite the growth of this comapny. I would definitely hold it and ignore this short-term pullback.

[starfire]

The key point made by David is that in the short term the PPS may see 60 cents before $2 and there are a lot of unknowns prior to the deal close. I agree about the unknowns. I am not sure about the 60 as I am not a short term trading guru. 60 may happen. But if it has a great longterm value ( I am still long), then I rather buy on the dips. I wish had some cash!

[ehos]

When a poor man (BRVO) sells to a rich man (CCE), he doesn't sell cheap.

It's a psychological tennant of capitalism.  BRVO owners aren't fools.  If they know Coke is interested, they won't just give away BRVO.

[goformoney]

Dave actually made a good point in an earlier post. If BRVO can do it themselves to market slammer worldwide, it is not necessary to have CCE in the picture. Since CCE is the one that pursuing this idea, they need to pay a reasonable price. Of course, it won't be  36 cents

I find that the press release is very confusing. But there is nothing written in stone yet. So stay tuned for the new round of news.

Good Luck!