Monthly Archives: May 2012

Barfresh (BRFH): Deja Vu All Over Again

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Barfresh (BRFH): Deja Vu- All Over Again

On April 23rd I published my first edition on Luxeyard (LUXR)- The edition was titled “Still 50% Undervalued”. At the time, LUXR was $.80.

On May 8th, I published my last (not forever) edition on LUXR, where I disclosed I had sold my entire position in the stock - with the last trades being around the $2 level. The net gain for you over 2 weeks was about 150%. I wish they were all like that.

That’s all very nice- but here’s the point of today’s edition. During the course of that two weeks, there was one pullback in the stock. The April 19th edition had a section entitled LUXR- You’re Getting a Mulligan. The stock had abruptly traded down from $1.25 to about $.80. If you acted quickly, you had a second chance to jump in.

Here’s the chart:

Learn from the past to make money in the future. The back half of this week is your mulligan in my by far current favorite idea- Barfresh (BRFH). This is Deja Vu all over again.

The Barfresh (OTC: BRFH) Mulligan

While there’s no guarantee BRFH will be a perfect repeat of what happened last month with LUXR, I believe there’s a good chance we’ll see a repeat of the pattern. As I disclosed in my initial presentation, I am a very large shareholder of BRFH shares, but have not been paid in any way by the company.

I’m also plan to be very active both buying and selling in this security. Last week, I was a seller of a very small percentage of my position. Yesterday, I was buying it back, and will likely do so again today and/or later in the week if I am lucky enough to be able to acquire the shares in the $1 range.

Here’s a chart:

In my initial presentation on May 13th, I described Barfresh (OTC: BRFH) as representing the “Most Profitable 7 Square Inches on Earth”. I’m referring to the roughly 7 square inches a blender uses on the counter of a Quick Serve Restaurant.

Their product has taken Australia by storm.

Again, if nothing else, I strongly recommend you invest 5 minutes of your time to watch the video you can find at this web page:

www.gobarfresh.com

You’re getting a mulligan on this one. It’s one of the better ideas you will read about for this entire year in the high risk, high return microcap sector.

If you missed LUXR, use this shallow pullback to take advantage of this one. I was yesterday, and could very well do so again today.

A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.

Simply go to www.bigbizshow.com, and click on the “Watch Us Live” button. I’m the guest host on the show every Monday.

Home Page : www.otcjournal.com

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Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth

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OTC: BRFH The Health Food Smoothie Craze

Quietly and unnoticed there is a major stealth bull market going on in the health food sector. Here’s some examples:

  • Organic pasta, breakfast cereal, and frozen pizza company Annie’s (NYSE: BNNY) came public at $19 per share on March 28th. Within one month, the stock traded up to $44 per share, yielding a 131% return in 30 days for investors lucky enough to get the IPO shares.
  • Since the market low in 2009, nationwide organic super market chain Whole Foods Market (NYSE: WFM) has traded from $10 to $85, delivering a mere 750% to investors over a 3 year period as the company continues to deliver an annual growth rate in excess of 10%.
  • Organic Grocer Fresh Market (NYSE: TFM) – a competitor to Whole Foods, was a $32 stock in 2011- today the stock trades closer to $52 for a 62.5% gain over the past year. Fresh Market delivered 13.5% growth in 2011.
  • Hain Celestial Group (NASDAQ: HAIN), a natural and organic food manufacturer, was a $16 stock in early 2011. Today, HAIN trades for about $45, delivering a 182% return for those who have held the stock for the past 18 months.
  • Monster Beverage Corp (NASDAQ: MNST), formerly known as Hansen’s Natural Sodas, was a run of the mill Southern California beverage company for many years. Hansen’s introduced a line of natural sodas and bottled carbonated fruit juices, and sales exploded. In the past year, MNST has run from $20 to $64- yielding a whopping 220% to investors who chose to hold the stock the past 15 months.

Attention health food investors- there’s a new food specialist in town. This company’s products have been marketed in Australia, New Zealand, and the Middle East for the past seven years, and the same management team is now in the US and ready to penetrate the market. They have perfected the product Down Under, and are now introducing it to a market 30 times the size.

Their specialty beverages can be found in over 1100 locations Down Under, and is about to take the US QSR (Quick Serve Restaurant) market by storm in the US.

For your consideration:

Barfresh Food Group (OTC: BRFH): The Most Profitable 7 Square Inches in the World

McDonald’s put their smoothie program in last year, and same store sales went up 6%. For an established restaurant chain like McDonald’s, a 6% same store sales increase is a massive gain. Its unheard and drove McDonald’s stock to all time high of $100 per share.

Once behemoth McDonald’s gets a result like that, every other chain follows suit to take advantage of the new trend and remain competitive. So, naturally, Burger King has introduced their version this year, complete with a major advertising campaign starring David Beckham, Jay Leno, and Mary J. Blige. I guess a 6% revenue bump is worth a major advertising investment.

Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth

Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth

The key ingredients in a smoothie are ice cream (or sorbet), fruit, fruit juice, and ice. So, if you’re a quick serve restaurant with fairly limited space to prepare new menu items, how do you put together a Smoothie offering to your customers? The difficulty is by far the ice- most QSRs do not have ice behind the counter- the only ice in the store is on the other side of the counter, and comes out of the soft drink fountain machine.

Enter Barfresh with the perfect solution, and no other food provider on Planet Earth can provide this same solution. It is patented in many countries around the world, and patent pending in the US.

BRFH sells this product to all kinds of customers- but their largest category of customer is the QSR- Quick Serve Restaurant. This is the perfect solution for a QSR to get in the Smoothie business with a great deal of ease.

All the store needs 5.5 ounces of water, seven square inches on a counter for a blender, and some freezer space. These specially designed packages sell to restaurants for about $1 each.

A high quality Smoothie can be made in a blender is just 30 seconds and served to the customer. Restaurants charge anywhere from $2.50 to $4.50 for the finished product, making the Smoothie one of the highest margin products on the menu.

Hence- my belief the 7 square inches required for the blender might be the most profitable 7 square inches on Earth.

It’s extremely easy for any employee to prepare, and there is zero waste, and a great margin- QSRs love this.

BRFH Ready to Deliver

The packaging process is proprietary, and took many years to perfect. Their patented production lines can be added on to any ice cream factory, which will allow the company to expand rapidly in the US without huge capital investment.

No one else in the world has the capability to put ice, ice cream, frozen fruit, and fruit juice in the same frozen package.

BRFH has completed the installation of its first production in an ice cream factory in Salt Lake City, and is ready to begin accepting purchase orders in the near future.

This product was developed in Australia, and the Barfresh Smoothie is served in nearly every Subway store in Australia, New Zealand, and the Middle East. Krispy Kreme is a customer as well, along with many other names that aren’t familiar to US consumers.

One important note: Barfresh USA and Barfresh Australia are separate companies with the same ownership. Founder Riccardo Della Coste is the CEO of both companies, and is running the show on both sides of the oceans.

You can invest in the US version now under symbol BRFH. The company has just completed its first US production line. This line is capable of producing about 7 million units annually. The company has been showing product in the US for 3 years, and I believe its first major orders are just around the corner.

I suspect the stock will trade a lot higher when the company starts announcing its first orders. A close relationship with a major QSR chain like Taco Bell, Dunkin Donuts, or Quizno’s subs would like send the stock screaming up the charts.

Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth

Barfresh Food Group (OTC: BRFH) The Most Profitable 7 Square Inches on Earth

For risk oriented investors, this is the time to get involved- before the orders come.

Time to Invest Your 7 Minutes in BRFH

As I mentioned yesterday, all you need to do is commit 7 minutes of your time to watch a video on the company. I know everyone can afford to invest 7 minutes.

Click Here to watch the video and read a lot more about the company from another source.

Here’s the URL: http://www.gobarfresh.com/

Longer term, the QSR market in the US is 30 times that of Australia

There’s some other information you should have. For starters, I’ve purchased a lot of this stock through my company and my family account. I was instrumental in helping the company raise capital in the US to get the operations started.

I expect to be very active trading this stock- both buying and selling. I did both last week, and will continue to do so without any prior notification. I’m both hoping and expecting the company to start delivering its first purchase orders in the near future, and am hopeful these future events will have the stock trading much higher.

Much more on this company in the coming weeks. There’s a lot to know and understand.

I love this stock around the $1 level. I believe it could follow the same trajectory we saw with LUXR last month- trading to about $1.50, backing and filling, and eventually finding the $2 level over the next 4 weeks. Fundamental developments will have a lot do with the short term upside.

Longer term, the QSR market in the US is 30 times that of Australia, so the company has massive upside potential. QSRs are scrambling to put in a Smoothie program, driven by the need to catch up with McDonalds and Burger King.
Invest 7 minutes to watch the video- you can afford it, then own the stock if you are as compelled as I am.

A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.

Simply go to www.bigbizshow.com, and click on the “Watch Us Live” button. I’m the guest host on the show every Monday.

Home Page : www.otcjournal.com

Email Questions or Comments To: [email protected]

 

 

 

Plandai (PLPL) Gets $13 Million

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It’s Been Lots of Fun Lately

Winner #4 in the last 30 days should be dished up post open today, and I couldn’t be more excited about the way things are going. In case you haven’t been paying attention of late, here’s three stocks I’ve been covering that have dished you up monster profits if you invested recently:

  • Vringo (AMEX: VRNG): Introduced May 1st, 2011 at $1.50, closed Friday at $3.62 for a 141% gain.
  • Liberator (OTC: LUVU): Introduced January 8, 2012 at $.15, closed Friday at $.44 for a 193% gain.
  • Luxeyard (OTC: LUXR): Introduced April 11, 2012 at $.80, closed Friday at $1.70 for a 112.5% gain.

I know these gains seem extraordinary, and they are. I know there have also been a few losers sprinkled in over that time frame, and there have been. However, these are real returns, and you can just click on the dates, read the original editions, and look at where the stocks are now.

That’s really good news, but there’s great news today as well. I’m as near as certain as I can be that I’ll be adding a 4th recent idea to that extraordinary list based on the pre-open news from one of the other followings.

Please tell me you already own this one. If not, it’s probably not too late. I don’t know where the stock will open or even if it will open a lot higher than Friday’s close. However, today’s news turns the Plandai (OTC BB: PLPL) dream into a reality, and I suspect the stock is poised to rock.

Read on- only if you like making money….

Plandai (PLPL) Gets Its $13 Million; Game On

Lest you think the health food sector has not been hot of late, consider the following:

  • Annie’s (NYSE: BNNY); organic pasta maker- came public at $19 on March 28th- 30 days later the stock hit $44 for a 131% return
  • Whole Foods (NYSE: WFM): the best of breed organic grocery store chain has traded from $10 to $85 in the last 3 years- 750% return
  • Fresh Market (NYSE: TM): the second largest organic grocer- from $32 to $52 in the last year - 62% gain
  • Hain Celestial (NASDAQ: HAIN): natural and organic food manufacturer was $16 a year ago- $45 now - 182% in the last 18 months
  • Monster Beverage (NASDAQ: MNST): Formerly Hansen’s natural sodas- $20 to $64 in the past year- 220% in the last 15 month.

So, lest you think this sector is not smoking hot- just look at those numbers and I believe you’ll see it differently.

Identifying the up and coming small stocks in a hot sector can yield remarkable returns.

Today, before the market opened, Plandai Biotech (PLPL)- a stock I featured back on March 26th, announced a watershed event and one that I am very certain will add PLPL to the big winners list featured in the first section.

Rather than a full review of what the company does, I’ll simply reference my initial presentation if you want all the details. The March 26th edition tells you all you need to know. The stock was $.25 that day, and closed at $.28 on Friday- so there’s still plenty of upside.

The quick over view- Plandai (PLPL) is a combination agricultural/biotech technology company. The company’s founders have developed a revolutionary new technique for super charging Green Tea Extract- a food product in huge demand. Rather than license, they plan to grow tea, process extract, and sell it to major beverage companies to maximize their profit potential.

Today, before the market opened, the PLPL horses left the gate. The company has a 49 year lease on 8500 acres in prime South African tea growing country, but needed money to start growing and to build their processing plant.

Today, PLPL disclosed it had finally gotten the long awaited 100 million Rand ($13 Million US dollars) low cost loan from the South African Land Bank- an agency of the South African government.

The terms of the loan are remarkable- they pay .5% interest- yes, that’s 1/2 percent. They don’t have to make a payment for 25 months. It’s secured by the assets of the company and agricultural receivables. One subsidiary must share 15% of profits somewhere down the road.

At $.27, the stock reflected a company with interesting and exciting technology, but no money to implement its strategies.

This is a resounding endorsement of the company from the South African government. Land must be cleared, tea must be grown, and production equipment must be acquired, assembled, and producing.

Can you imagine owning this stock somewhere down the road when they start getting purchase orders from major international names in the healthy beverage industry?

You’re getting this information on PLPL before anyone. The company has filed this information with the SEC, but hasn’t put out a formal press release yet. I’m sure that’s to follow.

By the time you read this, I have no idea where the stock will be trading. If the market hasn’t jumped on it, you might be able to acquire shares at $.30 or under.

Here’s what I know. The company announced this funding from the South African government in January, and the stock ran up to $.60. Then there were complications, and it took 3 more months to close the transaction.

A return to $.60 would be a cool double from Friday’s levels. Regardless of what happens in reaction to the news in the short term, I am certain PLPL will now join the ranks of the big wins listed in the first section of today’s edition.

Much more to come on PLPL.

I’ll be featuring Plandai (PLPL) on today’s BigBizShow at about 12:30PM Eastern, 9:30 AM Pacific. Tune in.

Simply go to www.bigbizshow.com, and click on the “Watch Us Live” button. I’m the guest host on the show every Monday.

Home Page : www.otcjournal.com

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Liberator “LUVU”: Just Getting Started - Liberator (OTC BB: LUVU): Just Getting Started

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Liberator (OTC BB: LUVU): Just Getting Started

On January 15th I published my first coverage of Liberator (LUVU) when the stock was $.15. LUVU then proceeded to bore everyone to death by spending January, February, March, and April trading between $.15 and $.20 on fairly light volume.

However, when I saw the 2nd quarter numbers for the December ’11 quarter, I knew it was just a matter of time before the stock found an audience and its way to a valuation that is more reflective of the company’s achievements.

LUVU has tapped in to a growing segment of the economy that is widely followed by anyone but the retailers who want your business. Companies like Amazon, Drugstore.com, Walgreens, and CVS are all jumping on the bandwagon, and LUVU is the only pure play in the sector.

Since starting the company in 2002, LUVU has achieved over $60 million in revenues, and turned profitable for the first time in its history last quarter. Over $20 million is a real possibility this calender year- which is huge growth when one considers it took 10 years to get past the $60 million mark.

The stock has started trading beautifully. The audience is developing, and the next quarterly numbers will reflect LUVU’s best time of year- no wonder it’s trading so well out in front of the numbers.

Here’s a refresher edition for those who want to take another look- I believe there’s still tremendous upside from these levels.

Meet The Fockers Meets LUVU

Meet The Fockers is the 2004 comedic comic film starring Ben Stiller, Teri Polo, Dustin Hoffman, and Barbara Streisand. Greg Focker (Stiller’s character) is marrying Pam Byrnes (Polo’s Character). Her retired CIA agent dad (De Niro) wants to meet his quirky, hippy like parents- Hoffman and Streisand.

(OTC BB: LUVU) - Turns Profitable

It was the second movie in the franchise, and was wildly popular. The film cost $80 million to make, and ended up grossing over $500 million worldwide.

Roz Focker - Greg’s mother (played by Barbara Streisand), plays a sex therapist who specializes in senior sexuality. The plot line is hysterical, especially when Streisand interacts with uptight, ex CIA agent Robert Di Niro.

There’s plenty of sexual over tones in the movie, especially in light of Streisand’s character.

One of the unintended stars of the movie is some unique furniture displayed prominently in several of the scenes. This same furniture has been shown in several other Hollywood movies, and more recently on a very popular reality show- the Real Housewives of Atlanta.

Atlanta based Liberator, Inc (LUVU), a company that has generated over $60 million in revenues since its inception in 2002, came up with a very clever way to use left over foam scraps by turning it into portable furniture. The company is hitting new sales records every quarter, and is just starting to turn profitable for the first time in its history.

Liberator takes left over foam and cuts it into a variety of triangle and incline shapes to create specially shaped pillows and furniture. It’s primarily designed as bedroom accessories, but they make lines of bean bag chairs popular with college students and others.

While it doesn’t get a lot of attention, there is a whole new category of consumer products being categorized as Sexual Wellness or Sexual Well Being.

Visit the Web Site at www.soap.com. It’s a household and personal care site selling everything from discount diapers to toothpaste and hair products. There’s a category on the home page on the top menu bar for Sexual Wellness.

These products are getting main stream adoption rapidly. Liberator’s single biggest customer is Amazon.com. Amazon has a full product offering in a section known as “Sexual Wellness”. Click Here to visit Amazon’s product offerings in this category.

Drugstore.com, Vitaminshop.com, and Brookline are other retailers moving rapidly into the space. These products are no longer shopped for a seedy little specialty stores. It’s all behind closed doors, but it’s main stream now, and the market for these products is growing very rapidly.

Liberator (OTC BB: LUVU) Delivering the Numbers- Turns Profitable

This past December, LUVU delivered its best quarter ever. The companies top line came in at $4.3 million- a 17% increase from the same quarter in 2010. Gross profits were $1.25 million. For the first time in company history, LUVU reported a net profit of about $40k- this turn to profitability has investors taking a hard look at LUVU for the first time.

According to Business Week, the commercial sex industry is now ranked one of the “Top 5 Rising Industries for 2031″- expected to grow over 17% each ear. In 2006, this industry contributed $13.3 billion to the total US economy. You cannot afford to ignore this industry group- after all, It’s bigger than the NFL, NBA, and MLB combined.

At its current growth rate, this will be a $47 billion global industry by 2030. There are numerous research reports highlighted how the commercial sex industry has moved from underground, small scale operations to more normalized, main streamed companies.

For more information, read researcher Emily Empel’s on “The Future of the Commercial Sex Industry in 2030“. Click on the title to get there.

Conclusion- Your Upside

Lest you think there’s no money to be made in the few stocks in this sector, think again. Check out this chart.

This is Rick’s Cabaret. Yes- this was a reverse merger bulletin board stock many year’s ago. This $84 million per year company is been a smokin hot stock from time to time. As you can see from this weekly chart, RICK was $4 in 2009, and nearly $30 in 2010. Not bad if you owned it at $4.

LUVU is a story of clever American ingenuity. I love stories like this. Founder Lewis Friedman took discarded foam scraps and turned them into $60 million in revenues over 9 years.

Furthermore, in the Sexual Wellness category, LUVU is the only company that exists with a real brand. With customers like Amazon, Drugstore.com, Wallgreens, and VitaminShop.com, their products are easily attainable by Main Stream consumers.

Absolutely no one knows about this stock. I personally invested in the company about 3 years ago in a private placement priced at $.25 per share. The company was smaller than, but market valuations were richer. I had 100,000 shares- I now have nearly 90,00 shares left.

This chart tells the whole story. Even though it was only a $40,000 profit last quarter, it was a major turning point for the company. Once the profit corner is turned and growth continues, the bottom line can accelerate, and the market knows that.

I suspected this one will continue to trade up rather easily once investors start catching on to the growth in both their sector and their company.

There’s under 90 million shares I&O, so at $.385 the entire market cap is only $35 million-it’s trading at less than 2x annual sales, which is absurdly cheap.

I see no reason why this stock couldn’t trade into the $.75 to $1.00 range over the next 30 to 45 days as more investor get exposed to the story. From today’s close, this would represent 100% to 150% return on investment.

If you like this idea, I would act right at the open tomorrow, and of course use a limit order- I wouldn’t pick it up any higher than $.40 to $.45 on the first day. It’s important to own this stock before the March quarterly numbers are released as it’s generally their best quarter thanks to Valentine’s Day sales.

However, I do plan to cover every development out of this company for the next 30 days, or longer. Use $.30 as your SSL. Risk 10 cents to double your money or more.

Consider Rick’s Cabaret (RICK)- had you bought it at the absolute bottom at $4- you could have ridden it to $30. The move from $10 to $30 was still a triple, so there was plenty of upside after the initial surge.

Catch Liberator on The Real Housewives of Atlanta:

This company was recently featured on the Bravo Show the Real Housewifes of Atlanta. They make a visit to the Liberator retail store. WWW.Liberator.com is their retail web site.

Click Here to check it the Real Housewives of Atlanta show. Of course, I had never watched the show, but I have to admit this is pretty entertaining. This is the kind of publicity that makes shareholders a lot of money.

Home Page : www.otcjournal.com

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