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Not surprisingly, the FED raised
interest rates another 1/4 point today. Despite the rhetoric suggesting
a "Katrina Pause" was appropriate, the FED continues on it's relentless
march to keep inflation under control. Fueling perceptions of future inflation
are energy prices (how can the price of gas not be inflationary?) and the
soaring prices of other commodities. Gold hit a 17 year high this week.
A greater cause for future inflation
pressure is the Bush's administration's policies on taxes and spending.
This past week, the Bush administration re-asserted it's game plan to continue
cutting taxes. This - in the face of paying for the War in Iraq and the
Katrina Disaster.
This policy will result in major
fiscal stimulus- after all, the US Government is literally printing money
to finance it's cash short fall. It's as if someone gave you a handful
of money you didn't earn and told you to spend it. According to the theory
of Multiplier Effect, any money spent equates to more in GDP than the amount
of money you spent. If you buy a home, the builder has more money to spend.
The real estate agent makes a commission and buys a new car. The new car
salesman buys a new home, and on and on. It is money in motion.
All this is still setting us up for
the standard 4th quarter rally, and I am like a kid in a candy shop when
I look at some of the current prices of stocks. If it's not energy, it's
not trading very well. Just like the quick 33% rally we got in DSEN,
several others are poised to rebound off oversold levels. HESG should
follow suit tomorrow. Jump in early if you want to get on board. I'll post
a BLOG on the trading activity in the morning.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG will scroll down automatically on the right side of your
screen. The most current journal entries appear in the middle of your screen.
Check back frequently for updates particularly when stocks are moving to
overbought or oversold levels or in volatile markets. Your questions and
postings do not automatically appear, so don't bother posting the same
question multiple times. I personally go through to moderate and respond
to every question.
If you've been waiting for my previously
announced new idea in the biotech arena, there has been a temporary delay,
but it's coming.
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Health Sciences
Group (OTC BB: HESG): Order Flow For SHUGR™ Picking Up |
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I haven't written any follow up on
Health
Sciences Group since the end of July when I first introduced the company.
Sales of the best sugar substitute in the world are starting to take off,
and the stock, like so many of it's non energy brethren, is cheap and poised
to rebound.
As a refresher course, HESG
is just getting started marketing the world's best sugar substitute, Shugr™.
Zero calories, zero carbs, tastes exactly like sugar, bakes and mixes exactly
like sugar, and is made from 99.5% natural ingredients.
Shugr™ is derived from a blend
of erythritol and tagatose which occurs naturally in many fruits and vegetables.
Shugr™
has a patent pending and its ingredients have a GRAS (Generally Recognized
as Safe) designation for food safety as determined by the FDA.
The product is currently being sold
through several national chains including the Vitamin Shoppe and
GNC.
At present, it is only available in 1.3 lb jars, but packaging is expanding.
The larger quantities will come in bags for baking just like regular sugar,
and packets will be offered as well for individual servings.
If you participated in the free sample
program, you can expect your free sample in the mail either late this week
or sometime next week. The company had a temporary delay from the fulfillment
house, but the samples are on their wait out now. Please try the product
and decide for yourself.
Recent press releases provide evidence
that Shugr™ is starting to get traction in the market. In a September
7th press release, HESG disclosed it was beginning to get solid
order flow from mega food ingredient distributor DNP International.
In today's press release, HESG
disclosed
order flow from GNC was accelerating. The first reorders of the
product are now coming in, and GNC is expanding the number of stores
within its 5700 store international network. GNC's VP of sales believes
orders will continue to accelerate for the product.
One of the things I like about this
company is their willingness to listen to both the public and shareholders.
Recently, I participated in a survey concerning packaging, and many of
you who requested the free sample might have done so as well. In case you
are interested, the coffee cup packaging won hands down vs the packaging
you see above. Many simply disliked the "sugar lips" image. Packaging will
be coming with a coffee cup. I'll have the image for the next edition.
After first introducing HESG
in the $.92 range, the stock spiked to $1.25 with 2 trading days. Since
then it's been all downhill. The market's obsession with rising energy
costs have taken the luster out of nearly every other group.
However, once we get past hurricane
season, the market will turn its attention back to other growth arenas.
The raging diabetes epidemic in the United States will once again come
back to the forefront.
HESG is close to a 52 week
low, and history tells us the stock has always rebounded from these oversold
levels. I believe this stock is poised for a rebound just like the 33%
rebound we enjoyed in DSEN.
The recent sell off has been on very
low volume, and I am concerned the stock will move up too quickly off current
levels. As of market close today, there were only a couple of offers in
between $.70 and $.75, and then nearly none for sale to about $.90.
Look for HESG to begin it's
rebound phase right now as sales of Shugr™ gain traction. A
high profile customer looking to include Shugr™ in a well known
food or beverage product would be heaven sent for shareholders.
Bottom line: Place a limit order
for HESG up to $.75 first thing tomorrow as the stock should
trade up quite easily. When you get your sample, try it yourself. I have,
and I love this product. It has enormous upside.
If you want to order a free sample,
simply click
here and fill out the form.
Here is the complete text of today's
press release for your review:
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Brisk Shugr Sales
at GNC -- Places New Order
Business Wire via COMTEX
Sep 20, 2005 4:01:11
PM
LOS ANGELES, Sep 20,
2005 (BUSINESS WIRE) --
Health Sciences Group,
Inc. (OTCBB: HESG), provider of innovative nutraceutical products and functional
food ingredients derived from natural sources, announced today that sales
of Shugr at GNC have been brisk with GNC placing new order for more stores.
With more than 5,700 doors worldwide, GNC is the nation's largest specialty
retailer of nutritional supplements.
"We are excited to see
that sales of Shugr have exceeded our expectations at GNC," said Fred E.
Tannous, co-Chairman and Chief Executive Officer of Health Sciences Group.
"With this new order from GNC, we expect to see Shugr sold in more of their
retail stores nationwide. We are working with GNC to develop various in-store
marketing and advertising initiatives to promote Shugr, including offering
coupons for discounts on purchases of Shugr. We expect these marketing
programs will further increase Shugr sales at GNC."
"As a result of the increasing
demand for Shugr at GNC, we have received numerous inquiries from other
retailers seeking to sell Shugr in their stores," commented Loren Miles,
VP Marketing. "We expect to progressively expand distribution of Shugr
in the coming months."
Shugr is the first natural,
zero-calorie sweetener made from sugars that occur naturally in such good-tasting,
healthy foods such as fruits, vegetables, corn and dairy products. Erythritol
is a naturally-occurring sugar commonly found in melon, grapes, mushrooms
and soy. Tagatose comes from dairy products, but does not affect people
who are lactose intolerant. Tagatose also provides an added health benefit
-- prebiotic fiber that promotes intestinal health, much the way yogurt
does. Maltodextrin is derived from corn sugar, which is non-GMO and gluten-free.
A trace amount of sucralose is added to give Shugr its "high note." All
of these ingredients carry a GRAS (Generally Recognized As Safe) designation
for food safety from the US Food & Drug Administration.
About Health Sciences
Group, Inc.
Health Sciences Group
identifies, develops and commercializes innovative nutritional products
derived from natural sources to provide consumers and medical professionals
with preventative healthcare alternatives. The company markets its own
line of proprietary products based on novel technologies with clinically-supported,
GRAS-certified ingredients under its Swiss Research(TM) and Swiss Diet(TM)
brand names. For more information, visit www.HSciences.com.
About GNC Corporation
GNC, headquartered in
Pittsburgh, Pennsylvania, operates 2,644 company-owned stores in the U.S.
and Canada and has 1,261 domestic franchised locations, 1,043 Rite Aid
"store-within-a-store" locations and 773 international franchised locations.
GNC is the largest global specialty retailer of nutritional supplements,
which includes vitamin, mineral and herbal supplements (VMHS), sports nutrition
products, diet and energy products and specialty supplements. For more
information and to order products, including Shugr(TM), visit www.GNC.com.
This release contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Act of 1934 that are based
upon current expectations or beliefs, as well as a number of assumptions
about future events. Although the Company believes that the expectations
reflected in the forward-looking statements and the assumptions upon which
they are based are reasonable, it can give no assurance that such expectations
and assumptions will prove to have been correct. The reader is cautioned
not to put undue reliance on these forward-looking statements, as these
statements are subject to numerous factors and uncertainties, including
without limitation, the independent authority of the special committee
to act on the matters discussed, the successful negotiation of the potential
acquisition and disposal of transactions described above, successful implementation
of the company's business strategy and competition, any of which may cause
actual results to differ materially from those described in the statements.
In addition, other factors that could cause actual results to differ materially
are discussed in the Company's most recent Form 10-QSB and Form 10-KSB
filings with the Securities and Exchange Commission.
SOURCE: Health Sciences
Group, Inc.
Health Sciences Group,
Inc. Bill Glaser, President, or Fred E. Tannous, CEO 310-242-6700
Copyright Business Wire
2005 |
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