eFood: An Update On Scheduling

41 Comments »

1. You said when the time comes you would do an interview with CK41 well looks like the time has come. Maybe you can get some answers to some of the questions you have.Are you still involved with the promotion of EFSF? If Pureffect starts selling in July/ August what do you feel that would mean to the price of the stock? What do you feel about the lastest pr on GSK and the bird flu? Does EFSF have a chance of being part of the solution to the bird flu virus? If it does what would that mean to the share price?Thanks in advance

   Editor: Those are very tough questions to answer. The idea of doing an interview with the CEO of CK41 is really good, and I’ll get the ball rolling to see if they are willing. If PurEffect starts selling in July or August, I have to assume it would be a major positive for the stock. However, I believe the real major positive will come when investors can turn on their TV and regularly see an infomercial with celebrity endorsements- some of whom are unnamed as of this time, but will be in the future. At that point, I could easily see a double or triple in the stock. As far as a solution to Bird Flu- that would make it one of the all time dream stocks. That would give you your ten or twenty bagger. An accepted treatment for bird flu could be sometime out, but you never know.

   Comment by Ronnie — 5/22/2008 @ 9:30 am

2. I really want other people to succeed. I do. I have made painful mistakes. It’s not fun getting crushed under the foot of any stock. Larry, do you believe in “hope” in investing? Should investors “hope” the stock turns around in one night because of Oraphyte? I’m trying to help, not be a nag. Please share your thoughts if you think this blog entry is relevant. Thanks.

   Editor: In microcap stocks, I believe in intuition. These companies do not lend themselves to traditional fundamental analysis. The best microcap investors have the ability to embrace a story and act as much on an intuitive feeling about the future of the company as any measurable evidence. This is a little different than just “hope”. Your intuition will be wrong from time to time, but it has been my experience those are they types of folks that make the best microcap investors. Then, you mix in a little technical analysis to help tweak the odds in your favor, and you have a good shot at making strong returns in this end of the market. 

   Comment by Lewis — 5/22/2008 @ 8:00 am

3. That PurEffect news was bad, really bad. I am a realist, not a pessimist. The company went from a first quarter launch, to another deadline in July that represents a partial product launch. What is going wrong, if you had to try to pin it down? Sorry for the harsh dose, but the supply is abundant and the outlook is nebulous at best. Thanks for posting all opinions, Sir.

   Editor: Folks seem to see this one a bit differently. Some liked it, others hated it like yourself. At least they are putting out a firm timetable, which has been out of EFSFs control. However, I personally did not care for the open ended time frame to do the big media blitz. Expectations have been this would be a huge infomercial product. They stated the initial push would all be internet related, with the big media blitz coming sometime out in the future. When is the future is my question? Perhaps they are planning the big media blitz in the Fall when these kinds of programs are more effective. 

   Comment by Lewis — 5/21/2008 @ 6:42 pm

4. Clearly this is a company that requires patience on the part of shareholders. If you think they will succeed one day, you have to be willing to wait. The interesting this is that there’s definately the possibility of an overnight turnaround should any one of their products take off as is a possibility with Oraphyte once all testing is done. Clearly DuPont isn’t going to make any deal regarding Oraphyte until they have every i dotted and every t crossed, so to speak. Patience, patience, and then more patience; this is not a quick flip stock. Let’s just hope that the old adage comes true that good things come to those who wait.

   Editor: The way this is shaping up might surprise investors. We’re all looking for the big break out product- the one that vaults from zero to $100 million in mass sales over the course of the year. Now that the company is finally making some moves which will allow it to start increasing sales on several fronts, perhaps they will ease up to $10 million in annual sales by year’s end by simply having 3 or 4 different products that generate $2.5 million in annual sales. It will become more like “stealth” growth. Perhaps not as good as a huge breakout product, but nevertheless easy to hold onto the stock. 

   Comment by IrvT — 5/21/2008 @ 8:32 am

5. What’s your take on the Pureffect update today? I see it as yet ANOTHER delay. And a plan to withhold the TV until later - I’m dumbfounded by this. Are there some sort of contractual problems with the celebrities? It seems that the company has had filmed footage of them for a year or more. What’s the issue??

   Editor: Some folks seemed to like the news at it represents concrete information about moving forward with this program at long last. Others seem to be disappointed that they won’t do a complete TV blitz right out of the gates. The market seemed to like it. It seems to me EFSF as a whole is finally starting to move forward on a number of fronts, and a lot of small contributions could yield a pretty big result on the whole. 

   Comment by Stanley V — 5/20/2008 @ 7:38 am

6. Well finally some news on Pureffect from ck41 YEAH. This is what the stock needed. I am now going from a hold status to a buy. How about you. I remember you said in your first blog on EFSF that ck41 said they feel they can do 100 million in sales the first year out do you still feel that way? Here’s a quote: “CK41 anticipates estimated revenue at more than $100 million in gross sales in the first full year of the infomercial’s national roll-out in the U.S. market alone,” stated Christine McDonald, president and CEO of CK41 Direct.

   This is very good news finally!!!!!!!

   Editor: I don’t know if McDonald would stand behind that quote right now. However, I agree. This is the kind of progress the company needs to deliver to earn shareholder loyalty and interest. I also knew something good was bound to happen sooner or later. Perhaps the stock can get some legs and shoot up over the $.20 mark. They might not be cranking up huge sales on anyone product, but they are finally moving forward on a number of fronts. As I have been saying- $10 million in annualzing revs by year’s end is my requirement. 

   Comment by Anonymous — 5/20/2008 @ 7:11 am

7. is it a possibility that someone could come in and take over this company since we all think there products have a chace to do well? We need someone that knows how to market them. I still have not seen one TV ad.

   Editor: Not likely at this stage. They have to deliver a blockbuster product first. That’s the speculation. Bet on them getting a winner, hang with them, and make a fortune when they get taken out. There’s the risk. I believe they have some great products, some potentially great products, and need to make this new marketing campaign work. They are making the right moves. Now, the results need to come. They haven’t yet, which is why the stock is still $.17. There’s the speculation in a nutshell. 

   Comment by rob — 5/19/2008 @ 8:34 am

8. So at .16 are you telling people to buy or sell?

   Editor: It depends are where you are with the stock. If you own it, and own as much as you want, I would hold. If you don’t own it, I would be a buyer depending on your time frame. If you are looking for much higher prices in a week or two, probably not a good idea. If you can look out to the end of 2008, seems like a good buy for the speculative end of your portfolio. 

   Comment by Mike — 5/19/2008 @ 7:00 am

9. Lewis - I own it and I have every right to be critical of it. Why are you here? And when are you going to stop with the unsolicited advice? Newsflash: no one wants it!

   Editor: I want all commentary, positive or negative, from everyone. You can be critical or supportive as long as you contribute. 

   Comment by Carl — 5/16/2008 @ 9:56 am

10. Lewis why are you not on cnbc if you know so much or are you Larry

    Editor: CNBC has no interest in these small companies. That’s fine with me. By the time you hear about them on CNBC, the stocks will be far higher than the levels you learned about them. 

    Comment by Anonymous — 5/16/2008 @ 8:37 am

11. So this is it? Dead money until June? Though June #s will only incorporate one month of DM sales. So that shouldn’t do much either. This looks like dead money until After the summer. Why would anyone buy now? (Surely, Oraphyte doesn’t even appear to have an imminent deal if they only just added a 4th university…) Thoughts?

    Editor: Possibly- or possibly it might start to trade better for any number of reasons. Perhaps the sales with pick up from the DR program- perhaps something else positive will happen. I don’t know. Just stick with your discipline- whatever that is, and don’t get emotional about it. That’s my thought for you. 

    Comment by Stanley V — 5/15/2008 @ 11:24 am

12. Carl, if you own the stock, I have a question for you: Why do you own it, then bash it? Rhetorical.

    If you don’t own the stock, I have another: why do you care? Open ended.

    Is Dr. Richard Goldfaarb still there? Thanks.

    Editor: Yes, Goldfarb is still promoting the virtues of Cinnergen as far as I know. I take it every day, and I believe in the product. 

    Comment by Lewis — 5/15/2008 @ 11:08 am

13. Thank you Carl

    Editor: You are quite welcome. 

    Comment by Anonymous — 5/14/2008 @ 8:20 am

14. Larry I for one have enjoyed your coverage of EFSF. You have been frank, honest and too the points. I have learned to trade and not fall in love with a stock. I follow your suggestions (as well as Lewis). I have done ok with EFSF and Spicy Pickle.
    I am glad to see Ms Gruden release the coverage Wednesday. It was somewhat disappointing but it is what it is. This gives me a chance to buy and trade another day day.
    Keep up the straight forward comments and am patiently waiting on your next PICK.

    Editor: I have two new ideas coming- one I am convinced will be the best company I have ever covered. However, it doesn’t look like either will be coming until September. We are not in a great environment for micros, and I don’t want to try to manufacture stuff before it is ready to go. Two of my ideas I’m sure are going to be further winners- SPKL and PNWIF will get legs again at some time. EFSF is on the fence, and TCGD is just an unknown. CPNE and TTGL turned from huge winners to huge losers, and both will never recover. I’ll be coming up with more short term trading ideas in pretty short order. Right now, I believe the only way to go is short the broader market. We are extended and complacent right now. 

    Comment by Ron — 5/14/2008 @ 7:08 am

15. So you vehemently disagree with the notion of questioning whether the company is a scam. I don’t think it’s anywhere as “absurd” as you’re making it out to be. Perhaps, in the text book sense of “fraudulence” and “doctored balance sheets” they are not, but in a more colloquial way, it’s not all that much of a stretch.

    I question if they’re a scam due to their lack of communication. I question if they’re a scam due to their nondisclosure. I question if they’re a scam due to missed deadlines so numerous, I don’t think this open text field could accommodate their listing. I question if they’re a scam due to HORRIFIC investor relations characterized by no follow-through and staggering phone and email innaccessibility. I question if they’re a scam due to mis-handling / mis-managing the Oraphyte testing process. I question if they’re a scam due to incompetence in marketing Immune Bars and Pureffect. I question if they’re a scam due to the delay in launching Pureffect.

    So in conclusion, I guess I’m using “scam” to represent a completely incompetent, perpetually underdelivering, infinite dead-end of a company. One whose stock price today flirts with a historic low, despite having no less than 6 different “products” poised to “make inroads.”

    Bristle all you want. Tell me to “sell and move on” all you want. But I’m making a point to you and other investors that we (as shareholders) have a right to be disgusted with this company and question not only their competence and follow-through, but even their integrity and legitimacy.

    Editor: No doubt, you have the right to be disgusted. No doubt, you have the right to point out all their shortcomings. I think you have really beautifully encapsulated the frustration lots of investors have with this company. And, of course I am going to tell you that with all the problematic issues you list, you should not be in the stock. What other course is there to take? I am aware of all the issues you point out. However, I guess the difference between us is that I am willing to remain optimistic since they have made a major change in their marketing approach, and I am willing to give it a little time before taking the position it won’t work. I have already decided to abandon this idea by the end of 2008 if they are not generating annual revs approaching $10 million. If they are, I would hope the stock would be higher. If they don’t, I don’t think they have another life from these levels. From here, it’s either success, or raising more money at a lower price after some sort of reverse split. I do appreciate your contribution to this BLOG and your willingness to share your point of view with other readers. That’s one of the main reasons I have this interactive forum- so people can read a number of points of view. However, it’s still not a scam. Inept- poor communication- limited commercial success- poorly managed- all of the above? But, not a fraud. I guess it’s just semantics.

    Comment by Carl — 5/13/2008 @ 1:46 pm

16. I have been getting a lot of hate mail recently from those who were friends. It is interesting they continue to misplace blame. The blame is on them, not you, Larry, not me, Lewis or anybody else. Not even efoodsafety. It is the blame of the investor for not understanding what they are doing.

    I believe the stock is headed to new lows, below .15 based on the declining chart and technicals AND heading into the summer. Now, what is wrong with that? If you don’t own the stock, you are looking at a big trade set-up. A potential gift! I say to all here, please stop the negativity and start positive, research based due diligence. Don’t look to the company to manage their stock. They need to manage their business and the stock will follow. Based on the sentiment here and many other boards, like Ihub, yahoo, hotstockmarkets, stockwire…etc, the herd is angry and prone to be manipulated by the MMs. Don’t be the herd.

    What is the tentative PurEffect date? thx.

    Editor: I wouldn’t be surprised to see the stock trade to $.15. Quite right about understanding. I don’t get why people say the company is some sort of “scam”. They are just not delivering retail sales as quickly as people want, or I would like to see for that matter. There’s nothing illegal or fraudulent about not living up to expectations- anyone who has ever had children know that. Sometimes your kids can go through periods where you worry if they will ever amount to anything. Today’s high school screw up could be tomorrow’s billion dollar CEO or a welfare receipient- you just never know how it will turn out. In answer to your question, I don’t have a specific answer on PurEffect, but it could have a positive effect on the stock price should it start finally hitting the air waves. I’m sure it wouldn’t be a negative. Clearly, this story is one of not meeting expectations- but not a “scam”. You have to admit, they have a pretty interesting portfolio of products. It is what I call the “awesome burden of permanent potential” that gets people emotional about it. 

    Comment by Lewis — 5/13/2008 @ 9:03 am

17. What is your observation about the company’s update today? I’m happy to see some sort of clarity on what’s going on…but if you analyze the state of each product per their update, all I see are: more delays (Numaderm was suppose to launch THIS month), more vagueness (Pureffect = “soon”…when is SOON?), less-than-stellar DM results (”moderate” increase in sales - I think we were hoping for better than that), more vagueness (who are the spokespeople for Pureffect? Why is it so secretive to get the full list??), sub-par numbers (66% efficacy doesn’t impress me), and more vagueness (Oraphyte? No Dr. Joshi mention. More testing to find a more targeted use of the product? That sounds like they’re trying to salvage a use for it — I was under the assumption that the use was obvious - for nematode control in crops. Why is this in question all of a sudden? This issue is a wildcard shareholders did not expect).

    I just don’t see what’s going to move this stock based on all these vague scenarios surrounding all the products. Very disappointed. Am I missing something?

    Your thoughts?

    Editor: Please review today’s published edition:

    http://www.otcjournal.com/OTCJ-eFood-Update-Moderate-Sales-Growth-with-Buckets-of-IP/af/archive/20080513-1/ 

    Comment by Stephan — 5/13/2008 @ 7:29 am

18. What pisses me off is that you Larry protray yourself as someone with intermit knowledge of the company. But when someone calls it a scam you offer no answers. Lets look at cpne ttgl they were scams anyone can play with numbers but it catahes up to them. And thats what we want to know is this company bsing everyone. And this company does not answer any emails. Maybe Patricia Gruden should go back to being a travl agent.

    Editor: I’m not sure what the word “intermit” means. I’m pretty sure it’s not a word. I’m guessing you meant “intimate”. Also, I’m not sure why you are so “pissed” off. There’s no “scam” here. The numbers are the numbers. If you look back at CPNE and TTGL, they traded great when they delivered good numbers, and they fell apart when they screwed up. So far, EFSF has delivered moderate improvement in numbers, has a very good balance sheet, and a big portfolio of products. They haven’t had any monster commercial success with their products yet, and that’s why the stock is low. I don’t know why people have a hard time understanding those simple facts. It is what it is. If they sales start to pick up, the stock will also. In the meantime, I can’t explain why Gruden does not respond to emails, but I am not her, and I respond to all legit questions and comments.

    Comment by Anonymous — 5/13/2008 @ 5:45 am

19. What are you saying here for your holdings will you dump your shares if it hits this level. You have been a steady seller will that increase now that .165 and lower is trading?”Editor: My ssl remains in the $.165 range. If it drops much below that level, I believe investors should think about whether they want to stay engaged, or take their lumps and move on. Seems to me like one endless consolidation phase. ” Please make this clear because many of us follow your lead.

    Editor: No, I won’t dump all my holdings if the stock hits the $.165 level, which it already has. My position is considerably different from yours. I have a business to run that costs money. You don’t pay me. The companies do. In order to keep publishing, I have to sell in small quantities on occasion to keep the bills paid. EFSF is a very speculative company- I don’t know what’s going to happen. I don’t know if and/or when they will meet with major commercial success. Therefore, in order to keep running the company, I sell in very small quantities on a fairly regular basis, hoping to still own a whole bunch of the stock if and when it makes its next run. The only real disappointment here is the slow pace of sales growth. However, sales are growing and losses are shrinking. I believe in the products. At some point, I will simply not sell any more and keep a certain amount for the long term in case it’s a big win. An appropriate amount relative to the risk. Probably somewhere in the range of 1/2 million shares. At the current rate of sales, it would take me many months to get down to that level. Hopefully, between now and then, the stock has its day. I believe the stock is at a support level now. If you put new money in, I like your chances for a rebound. However, from this level you could simply sell it rather quickly if it continues lower. Support should hold, but I can’t say for sure. 

    Comment by Mike — 5/12/2008 @ 1:20 pm

20. Where
    IS
    THE
    COMPANY
    UPDATE????

    Editor: Would like to know myself. 

    Comment by Stephan — 5/12/2008 @ 8:53 am

21. is this company out of business? can they give us some info? your last news letter is on target but you didn’t mention most of the companys you cover stop putting out any news and investors take that as a negitive

    Editor: I hardly think they are out of business. Last quarter they had about $2.5 million in cash and cash equivalents, and almost no debt.  I hardly think they are out of business. However, some sort of informative update would be helpful right now.

    Comment by Anonymous — 5/12/2008 @ 7:43 am

22. An open question for EFSF: Are you a scam?

    Editor: I think that’s an absolutely absurd observation and or “open question”. To me, a scam implies something fraudulent- characterized as a lie of some sort. The company did $300k in sales last quarter, and had about $2.6 million in cash and cash equivalents. So, if you are calling their financial statements fraudulent, that is a very serious allegation. If you are saying they aren’t delivering sales results up to your expectations, that’s a whole other issue. Then, you are accusing them of failure, not fraud. You are entitled to be disappointed in their lack of sales, and view them as a failure. A scam is something fraudulent and entirely different. It’s not fraudulent to try and fail. I don’t know whether their new initiatives are meeting with commercial success, but I believe your characterization of “scam” is ridiculous.

    Comment by Carl — 5/12/2008 @ 7:23 am

23. Today’s volume and the 5 and 30 day charts suggest a possbile break of .165 to test the all-time low of .15. Based on the number of shares outstanding since the last time the stock was at that number, I think the chances are better than not we will see .15 or below. For traders, do you have any thoughts? We are headed into that summer slow down too…
    I don’t own the stock right now.

    Thanks.

    Editor: My ssl remains in the $.165 range. If it drops much below that level, I believe investors should think about whether they want to stay engaged, or take their lumps and move on. Seems to me like one endless consolidation phase. 

    Comment by Lewis — 5/7/2008 @ 1:37 pm

24. I appreciate your attempt at staying neutral, but do you not AGREE it is time for an update from the company?

    Editor: Absolutely- and I believe it is coming. 

    Comment by Brian — 5/7/2008 @ 10:49 am

25. this company has no credibility. maybe time for management to be replaced they can sell there products no info why would anyone buy shares or there products?

    Editor: I would say this is the last year they can buy without making some serious progress on the sales side. In my view, I need them to be annualizing at $10 million to stay engaged by year’s end. 

    Comment by Anonymous — 5/7/2008 @ 10:21 am

26. Is the NumaDerm launch soon? Please let the company know that they have to hit their stated targets!

    Editor: Can’t say for sure. 

    Comment by Lightbarer — 5/6/2008 @ 9:11 am

27. The company OWES its investors some sort of update. This is getting ridiculous. Why aren’t these idiots keeping you in the loop? Is numaderm still on track to launch this month?

    Editor: Will suggest it is time for an update on where we are with the various products. 

    Comment by Brian — 5/6/2008 @ 8:49 am

28. This stock continues to worry me. Getting close to the dumping price, but I guess the national exposure hasn’t really hit yet. I realize it’s not overnight, but I would have thought that recent news was good news to investors. Something going on that we don’t know about? Thanks!

    Editor: If I knew of anything, you would know as well. I don’t have any data on the national campaign yet. It is frustrating that the stock is not holding decent levels. It does appear someone has an agenda to sell this one. However, with the exception of one 700,000 trade in the past week, the volume has been quite anemic. Buyers are waiting for a reason to come back in. BTW- the 700,000 trade looked like a buy last Friday, but I can’t say for sure.  

    Comment by John B. — 5/5/2008 @ 7:56 am

29. Is repond2 involued with Pureffect? If so what is their part in it? Also what can we expect from ck41 on Pureffect? Does the June date seem real to you?What do you feel will be the sales numbers once Pureffect gets released?Thanks in advance.

    Editor: The June date does seem reasonable. I hope to have more soon. 

    Comment by Anonymous — 5/1/2008 @ 8:22 am

30. Oraphyte…Dr. Joshi…not a word. Is he still a consultant? Do you think it’s time to assume no news is bad news on this topic and just call it most likely dead?

    Editor: Hardly- it’s undergoing more rigorous testing at the University level under his direction. In light of the agricultural demand in the world, it could be the coup de gras for the company if it works out. 

    Comment by Brian — 4/30/2008 @ 1:26 pm

31. Also, what is the company focusing on primarily these days? Are you in touch with them with any regularity? Are they providing you with any imminent updates on anything?

    Editor: I am out of touch this week on the road. Will be back in touch with them next week for updates. 

    Comment by Stanley V — 4/30/2008 @ 1:20 pm

32. Any idea what the company’s plans are in terms of disclosing progress reports on the DM campaigns? Please tell me they aren’t going to keep investors in the dark with NO update until the actual Q numbers come out….

    Editor: I assume they will give some sort of update this month, but I have not heard anything specific yet.

    Comment by Stanley V — 4/30/2008 @ 1:19 pm

33. Correct me, please, if I am mistaken. I thought that OTC stocks (not those on the Pink Sheets) were SEC listed and have to file reports that could be found via an Edgar search. I just tried to look up EFSF and the search results said there was no such company. Am I missing something here?

    Editor: You will find their Edgar filings under eFoodsafety com inc. Here is a link:

     

    http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001157075&owner=include&count=40 

    Comment by IrvT — 4/29/2008 @ 10:35 am

34. Thanks, Matt!

    Do you see any reason why trader’s shouldn’t try opening a trade at .16-.17 again? Thanks.

    Editor: None whatsoever. The stock seems to have support down here, and resistance when it trades up through $.20. We’ll need some evidence of increasing sales to get it through $.20 convincingly. 

    Comment by Lewis — 4/28/2008 @ 1:56 pm

35. Matt - you beat me to it. Thanks for clarifying the timing on NumaDerm and Pureffect for the board.

    In regards to the launches, I’m going to give the company the benefit of the doubt and assume that they WILL launch both of these two things on time. My bigger question is, how viable are the projects? I.E. Does any consumer really care about Numaderm? And two, does Pureffect have enough firepower / attention-garning splash to cut into the ProActive market? These are the critical questions.

    Editor: Yes- and that’s why its an $.18 stock. It’s because it makes sense to all of us that the consumer will want these products- they just need to find out about them. Now, we have to learn conclusively one way or the other that the consumer will buy these products. I personally like the products and use Cinnergen every day. That doesn’t prove it will take off. Time will tell, but there’s your speculation. 

    Comment by Carson — 4/28/2008 @ 8:28 am

36. How are you feeling about the state of things right now?

    Editor: Nothing has changed for me. I suppose you are concerned because the stock dropped a couple of pennies. I don’t have a reading on the DR program at all yet. I don’t know why anyone is in a hurry to sell right now. Seems like their are a lot of positives irons in the fire. 

    Comment by Stanley V — 4/28/2008 @ 8:26 am

37. Lewis,
    The most recent timeline that has been announced was in the press release from 4/1/08 http://biz.yahoo.com/bw/080401/20080401005635.html?.v=1
    It states that they are planning to roll out NumaDerm in May and PurEffect in June.

    Editor: If they got rolling on PurEffect in June, that might get things moving for the stock. 

    Comment by Matt — 4/25/2008 @ 11:56 am

38. Larry, The links in your blog to the Cinnergen and Cinnechol web sites are not correct. Look were it says “Visit www.cinnergendirect.com and/or www.cinnechol.com to view the respective clips”.

    Editor: Thanks very much for pointing this out. I don’t know how I got it wrong, but your help is appreciated. I’ll fix them as well.
    

    Comment by Lightbarer — 4/25/2008 @ 8:05 am

39. In your personal and professional opinion, regardless of what the company says afterwards, what do you think are the ramifications of PurEffect NOT being launched this month? Will there be a “last straw” effect? They have told the public end of April for the launch. This was after missing CK-41’s website published date of “end of the first quarter ‘08″ deadline. I don’t own the stock, but I’m trying to decide whether there is anything left in this one to trade. Thanks.

    Editor: It’s not a death knell for the stock in my view. The issue, of course, is the new direct marketing campaign. Is it getting traction? Can it be fine tuned to generate $10 million in annual sales out of existing products? I can’t say for sure. I believe it is too early to decide one way or another. I’ll just continue reporting the facts as they come to light. The hard part is drawing a line in the sand- when do you say it’s not working, and just give up? After all, these things take some time to get rolling. Here’s what I will say- If this direct marketing campaign does not become a company changer, it will be time to get out of the stock and move on to new, and hopefully better ideas. 

    Comment by Lewis — 4/25/2008 @ 6:03 am

40. Larry, you continue to be poorly informed on Direct Response TV (DRTV) and how it works and you are accepting anything they put out as a valid statement on the hows and whys of DRTV. You stated incorectly ini an earlier Blog that Respond 2 was not being paid “except for the media” but in actual fact Respond 2 was either paid to produce the commercial (that is what they do) or took “a piece” of the revenue [or both] as they are nto a charity…and the associated Media company C Media or ATC Media is probably really the media buyer. Scheduling can change on a moments notice with any DRTV it has very little to do with the fact that a commercial is in testing. If the EFSF wanted to show the ads they can (and would and have) put the Video on their web site. The fact is that lots of DRTV does not work, I if we investors knew sooner rather than later how it was going there would be less room for them to spin this. di dyou ever ask or were you ever told why EFSF, after buying this out of direct response went back in to direct response?….hmmm things to ponder…I’d love to see this work in a min long, but you are being to generous wth managements failures and optimistic of the potential success of thier plans.

    Editor: I think you are characterizing the content entirely wrong, and also have your facts wrong. The CEO of Respond 2 told me directly that they produce the commercials as part of the all inclusive service, and there was no charge. Their margin came out of the mark up for the media. If EFSF’s relationship is different, I am not aware of it, but that is always possible. Also, I’m not sure how you are characterizing my views on this stock.  So, to correct your misconceptions I’ll clarify. I believe their efforts to sell their products through retail outlets failed miserably. I also believe the move to Direct Sales was the only way to go. I don’t know if it will work. I do know Respond2 has marketed similar products that worked well. I’m sure they have had their failures as well. If it works, and works well, the stock should start to behave better. If it doesn’t work, the stock won’t. When we look back at 2008, I don’t believe $10 million in annual sales is a huge, impossible barrier. As I previously published, you can view the commercials at the respective web sites of the products as disclosed by the company in a press release last week. If you believe these commercials will work, buy or continue to own the stock. If you don’t believe they will work, sell the stock. It’s your call. Watch the commercials and make up your own mind.

    Comment by Steven — 4/21/2008 @ 6:56 am

41. Seen the commercial on fox network Saterday night very nice. When do you think we will see the results in the stock price, in the end of the second quarter or the third quarter. Thank you…… I’m starting to get very excited.

    Editor: Nice- I believe the company is going to wait until after the test phase is over to start disclosing any numbers. That would take us into May sometime before we know much. I believe a big component in higher levels will simply be when micros begin trading better. Volumes are still pretty light in the microcap space, and I believe investors have to come back for us to get any really strong movement. Could be some sort of surge before the summer, but might take until out into the Fall. 

    Comment by Verland Henderson — 4/20/2008 @ 11:06 am

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