Barfresh (BRFH): Deja Vu All Over Again

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.

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

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

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.

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Luxeyard (OTC BB: LUXR) Still 50% Undervalued

Luxeyard (OTC BB: LUXR) Still 50% Undervalued Today

Yes, it’s still shameless to put up a picture of this beautiful woman in a skin tight dress to get your attention. After all, most guys want to meet her, and most woman want to look like her in this dress.

Luxeyard (OTC BB: LUXR) Still 50% UndervaluedThe name of this designer line is Stretta Apparel, and I count about 50 retailers around the globe carrying the line. While many are small boutiques, Nordstrom is included on their customer list, and the line is available in N. America, the Carribean, Hawaii, Europe, Asia, and Australia. It might not be a household name to us stock market nuts, but it’s a hot line in the designer world.

As I pointed out yesterday, this dress (the Charlotte) sells for $498 on the Stretta web site. You can find it online and on sale at a few outlets for $262.

However, if you are a member at Luxeyard (www.luxeyard.com), you can purchase this dress for the lowest price you will find it anywhere- $228- as long as you buy it by Friday.

American consumers have an insatiable appetite for luxury goods. Americans also have a keen eye for a bargain, and are willing to act when motivated by a deep discount combined with a limited time frame. The explosion of highly successful flash sites proves the point.

Moreover, the Flash Sale Site space is the beneficiary of a gold rush like mentality of Silicon Valley venture capital money, and the funding is just pouring into this new generation retailer segment.

As of right now, there are about 500,00 registered users on the Luxeyard site.

Luxeyard (OTC BB: LUXR) is one of the newer kids on the block, but is gaining market share and popularity very rapidly.

As I stated yesterday, based on the valuations awarded to these companies as sophisticated VCs pour money into the space, LUXR should be worth $100 million today. Instead, at about $.80 with 65 million shares I&O, the market is valuing the company at $52 million.

Here are the LUXR facts- plow on………..

$192 Per Registered User

VCs have been pouring money into the new breed of Flash Sale sites. Here’s a couple of recent examples:

  • iDeeli raised $70 million from Kodiak Ventures, Constellation Ventures, and StarVest
  • Fab.com received $40 million from Andressen Horowitz as a start up
  • Zuliiy received $43 million from Meritech Capital Partners
  • One Kings Lane received $23 million from Kleiner Perkins and $40 million from Tiger Global

Based on the valuations these sophisticated investors paid, one can easily argue LUXR is 50% undervalued. Luxeyard (OTC BB: LUXR) Still 50% Undervalued

This table shows a list of Flash Sale sites that have received financings from sophisticated Venture Capital investors in the last 18 months.

When one looks at the valuations of the fundings, and compares those valuations to the amount awarded per registered user at the time of investment, the valuations have come in at $197 per registered user.

Fab.com is probably the best comparison to LUXR as the user base is at the 1 million level.

LUXR, after many months of development, officially opened for business on January 24. According to a recent press release, LUXR has already eclipsed the 400,000 registered member mark, and at the present pace, should reach 1 million members by the end of June.

Fab.com, with its 1 million members, was financed at a $200 million valuation.

If we’re lucky enough to have LUXR trade to the $200 million mark by the end of June, the stock would hit the $3.07 level.

That would represent a 315% gain above the current trading range of the stock.

The Market Is Starting to Catch On to LUXR

I suspect millions of investors will be learning about this stock over the coming weeks and months. The action has started already. I have a lot more data on both the sector and this company in particular, but I can save it for some follow ups next week.

Luxeyard (OTC BB: LUXR) Still 50% Undervalued

Luxeyard (OTC BB: LUXR) Still 50% Undervalued

There’s lots more for you to learn about the TrendSetter Celebrities endorsing the products- led by world famous designer Daniella Clark (married to the guitarist from Guns ‘N Roses) who was responsible for designing the current low cut, high priced jeans. Their management team includes top executives formerly with names like Pottery Barn, Willams Sonoma, Ray Ban, Nordstrom, Hautelook, Calvin Klein, etc. More on that as well.

As you can see from this chart, LUXR has started to develop a following since early March. As the registered users piled in and the company started marketing products, the stock started to climb.

This is a very bullish and healthy chart. The stock was $.50 six weeks ago. It then made a nice leg up, making a new high at $.75. After a 50% move, the stock pulled back to a normal retracement of $.60, traded sideways for a few days, then headed on to a second new high. The average daily volume is now about 160,000 shares and climbing.

To simplify the picture, the stock is establishing a pattern of higher lows and higher highs.

Note there’s presently a short term pullback going on, which is why I was anxious to share this idea now. I wanted you to be able to take advantage of the brief weakness if you’re so inclined.

My first threshold is over $1 for this stock, and if the current pattern continues, it might be met on the next leg up. Longer term I believe there’s a chance the stock could find the $3 mark over the next several months if the registered users keep piling in.

Again, I remind you I’m a shareholder of both free trading and restricted shares, all acquired with my own hard earned money.

I would be an investor today in the $.80 range where it closed. Use $.60 as your suggested stop loss- it shouldn’t drop below the previous pull back level if the pattern is going to repeat itself.

The short term upside target over the next 1 to 2 weeks is $1, with a six month target of $3.

Special Notes

You should go to the web site and become a registered user. Simply visit www.luxeyard.com and sign up.

Also- there’s a special event coming up. Next Monday, when I co-host the BigBizShow, I should have Amir Mireskandari, the Chairman of the company, live in the studio for an interview and update.

He will be on at 12:30 Eastern, 9:30 Pacific Time- that’s on the internet streamed version.

Simply go to www.BIGBIZSHOW.com and click on the “Watch Us Live” link to view the interview on your computer.

We might have a gigantic winner with this one.

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