To OTC Journal Members: 
 

eFoodSafety (OTC BB: EFSF) Dishes The Goods Tomorrow

Tomorrow at 9AM Eastern time the new CEO of eFoodSafety will be hosting a conference call to bring shareholders up to date on the pending transaction with Freedom2 and update the current status.

For those who are following the story, you now know the management of eFood is being ejected and the principals of Freedom2 are taking over. Tomorrow, Martin Schmieg will be hosting the call, and he will take your questions as well. This conference will represent exactly one more conference call than the company has held in the 2 years I have been following their total lack of progress and complete ineptitude.

I had the chance to discuss the future of eFood with Mr. Schmieg one on one, and came away with a very favorable impression. Mr. Schmieg has a long history of success in the biotech world, and perhaps he can move the company forward.

He recognizes he is inheriting a toxic capital structure. After all, EFSF has been burning cash since 2004 with no commercial success. Therefore, they have had to issue a lot of shares to keep the bank account from registering zero.

I'm not going to share what I learned in my conversation. I don't want to steal the new CEO's thunder in tomorrow's call. I strongly recommend you listen in if you have an interest in the future of this company. There's a replay available if you can't make it.

Here's what I'll share. Freedom2 has developed a very interesting product. I first thought they had a tatoo removal product. It's not. It's a new tatoo ink that is far more easily removed should you decide you want to be rid of it in the future. I've seen some aging tatoos that no one should have to look at.

I like the possibilities here. Freedom2 is engaged in a commercial launch right now. They don't have to target the consumers as EFSF has done in the past. You only have to identify the artists in the tatoo parlors who use the ink. This has to be a pretty easy market to target and pitch.

It's the kind of product that could become viral within a tight community of potential users. If this becomes the "hot ink" to use in this world, sales could spike rather dramatically. Their sales forecast for 2009 is moderate, but would represent dramatic percentage increases over EFSF's failed efforts throughout the course of 2007 and 2008.

They have the infrastructure to evaluate the eFood portfolio, and determine if there are products worth commercializing. I'm sure Mr. Schmeig will cover their approach to that issue in tomorrow's call.

The chart is interesting. Clearly, there is some anticipation of improvement at EFSF. Note the stock appreciated to a triple top near today's close. If there's a break through above the line you see in the chart, it would suggest we might see a real breakout in the stock.

If you've followed my coverage of this company over the past two years, you know I stated emphatically I would drop coverage if they weren't generating $10 million in annual revenues by year's end. They aren't. 

I'm not going to formally drop it. I'll leave it up on the web site for the time being. A few of you have suggested I am negative on this transaction. That's simply not true. I believe it's the only direction the company could go. 

Much like Barrack Obama- a change should be a positive here. For the time being I am neutral on the stock. I intend to keep a few shares for the long term, but want to see how things develop. You never know. If this tatoo ink becomes viral in the Pop culture community, who knows what might happen with the stock.

In the interim, I'll be commiting my attention to companies with better growth rates and stronger balance sheets for the time being. There's more China Energy like companies to come down the pike.

Here is the press release concerning the conference call. I strongly recommend you listen in if you have an interest if the future of EFSF.
 

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com