Over the month of April I bought 50,000 shares at an average cost of .576 a share.
Bravo has a distribution agreement with CCE, CocaCola Enterprises, that runs to 2012.
They have a brand licensing agreement with Masterfoods, Mars Candy names, that runs through 2012 as well. They just added Dove and Snickers to Milky Way, Starburst and others.
They signed a similar licensing deal with General Mills to produce Cocoa Puffs milk and others.
They have diluted the stock to fund operations so far. They have a "hard rollout" starting with CCE to an expanded list of outlets in early June.
The big thing holding them back is limited aseptic production although they will generate over 5 million bottles this month going up to over 7 million in July.
I really like their being first to market with an 8oz. bottle and a formulation at 180 calories that meets the guidelines set by Clinton's foundation, Americans for a Healthier Generation.
I am not seeking to pump this as I truly believe they don't need it. I would welcome any other sets of eyes looking into to either confirm or lead me to stuff my DD didn't catch.
This is my first OTC stock pick. I have 40% in bonds, 35% in blue chips and 10% in cash at this time, and Bravo for the excitement. I think it will be over a dollar after the 3Q report including school sales numbers and confirmation of their first to market advantage.
Any thoughts appreciated, glta
D

Dolphp,  I believe that the company needs to concentrate on cutting their costs.  Even though BRVO had revenues of nearly four times that of the corresponding quarter of last year the losses have nearly tripled during that same quarter ending on 3-31-06.  BRVO has a very weak balance sheet but that can be helped by more dilution.  

I forgot to mention that there were two categories that I would watch in the future, "cost of sales" and "selling expenses".  Each by themselves were nearly as much as the total revenues.

I hear you Popeye, I think those costs were associated with the ramp up to the big nationwide rollout with Coke. They will be in 55,000 outlets, about 5%, of the Coke universe. 55,000 promotional displays and the extra sales staff, gonna cost you.
I agree that with any company selling, the management of costs, marketing and production are key. I can accept the rise in costs now as they are starting a major undertaking. I will grow less comfortable if it continues.
One of the guys from here, Cesar, running otcbbcoverage.com, mentioned the same thing and thinks it will be hard for them to generate truly healthy margins given their payments to bottlers and distributors.
Valid concerns as well. Again, we will see. They give product to Coke at a lower price than others because Coke is buying in such volume. Their agreement however does call for Coke to cover all slotting fees and other costs they would be paying in other contracts.
In the end, my analysis is that they will be profitable and this stock will appreciate greatly over the next 6 months to a year.

This article lays out the story of the company pretty clearly, it was the cover story and a picture of the Bravo team holding product was featured on the cover as well.
Goes to their rationale and thinking.

http://www.bevindustry.com/content.php?s=BI/2006/04&p=9

Stock is popping around a little today. Up about .03 so far.

Looking at BRVO. What is the PE if any? JSDA has a PE of 174, HANS has one at 58. Both of these stocks have approximately 22 million shares OS. BRVO has 167 million shares OS. Any clue?
Thanks,
Stockjocky.

Stockjocky, BRVO had a net loss of nearly $4,000,000 last quarter so they have no P/E ratio.

Quoted from popeye

Stockjocky, BRVO had a net loss of nearly $4,000,000 last quarter so they have no P/E ratio.

Thank you Jerry for answering this,


johann67

They have stated they will be EBITA positive in the 3Q this year. Hope so. They diluted the stock in a major way last year to sign the CCE distribution deal and fund the company. CCE is a major stockholder like 30% or more.
CCE is Coca Cola Enterprises.
The stock has been channeling recently. Should have some PR's coming soon with the hard rollout with CCE. CCE will apparently also be issuing some PR on it as well. Apparently, Bravo is their only milk beverage going into schools this year.

Here is a link to a recent story on the move to milk in schools. Includes Bravo.....
Got milk?

http://www.jsonline.com/story/index.aspx?id=431811

• The nearly $1 billion flavored milk-based category (according to Beverage Industry magazine) is gaining momentum in schools. Bravo! Foods last year signed an exclusive 10-year distribution agreement for Coca-Cola to distribute its Slammers 2% flavored milks nationwide in 3 Musketeers, Starburst and Milky Way flavors. Snickers will launch this summer. Suggested retail price is $1.19 to $1.69.

Bravo! Blenders is the latest product in the company line, aimed at working moms on the go, with a suggested retail price of $1.49. These low-fat milk beverages come in vanilla peach, chocolate raspberry, double French vanilla and double chocolate.

Everybody is talking about food and beverage stocks being good in down or recession markets. If major money starts flowing in after the coming PRs on Bravo's hard launch with Coke in June, I think this thing could really rock.
The fundamentals dont really support a high price for this stock at all, but when this one is found, it could get pretty frothy. JMHO, do your DD.
D

Thanks dolphp59. I'd really like to know what their PE is.
Stockjocky.