EFSF is sitting in this mid $.30s range kind of grinding around. I wanted to share a couple of mid summer thoughts about this idea, and prepare you for what might be great, and what might not be so great.
Here’s what I am excited about today: PurEffect. PurEffect has the potential to be a huge product for the company. The CK41 team has launched a number of very successful products via infomercial, and now that we know the production has started, and there will be viable personalities endorsing the product, it makes for a great speculation at the get go. I have heard projections in the hundreds of millions in sales over the life cycle of the product, and in this case I believe we have a real shot. Remember- this is a recurring revenue product. Users must reorder monthly. If they use it and like it, sales could grow to unheard of levels.
Here’s a minor negative- Cinnergen- while I don’t know the exact levels, I can tell you Cinnergen is not taking off as robustly as the company would like. I know they thought retail distribution would be a little more widespread by now, and once the product gets on the retail shelf they have no control over how it is displayed. To their credit, they are taking matters in their own hands with the launch of the ecommerce site. All businesses will have challenges- it’s how they deal with the challenges that measures the upside. Eventually, this product should take off- Why? because it works. I know it works thanks to you. I have received emails from OTC Journal subscribers who are diabetics and take the product. They have reported to me that Cinnergen allows them to eliminate or take less of their medication. Once this is identified by the masses as a potential weight loss product, it could really rocket.
Oraphyte is simply a waiting game. I don’t know if Dupont will pick the product up for distribution, I can only hope. Someone erroneously reported that Dupont has rejected the product- it is not true- Dupont is in the testing phase right now.
Today, the company announced it will begin clinical trials for its Cold treatment, ColdZap. It’s probably a little early to factor this product into your thinking about the future, but if this is anything like Airborne, there is huge potential here as well.
Here are a couple of minor negatives you need to wrestle with if you are going to continue to be a shareholder: 1. You will no doubt here about AmeriFinancial registering to sell 1 million shares through Rule 144. This requires an SEC filing. I am informed Amerifinancial owns these shares through the settlement of a law suit. I am also informed they are limited to 10,000 shares per day and no more than 10% of the previous week’s total volume. This will not result in any major supplies hitting the market and sabotaging the stock price. However, the market makers might use the information to knock the stock down, in which case it would be a buying opportunity. I don’t know if this is the only incident of its kind pending, and I don’t know anything about the law suit. However, it is a non event in my view except in how it could effect the way the stock trades.
2. Minor negative, and this is ongoing- simply the number of shares I&O. Over the years, as this company has developed and had a couple of false starts, the number of shares I&O has grown to a pretty big number. The last quarterly number was 156 million, meaning at $.35 the market is saying the company is worth $56 million. 18 months ago there were 128 million I&O, so the number is remaining under control and growing at a very reasonable pace for a virtual pre revenue company. However, in order for the stock to go up $.10, the market must buy into believing the company is worth $15 million more. With the products they have ready for commercialization, it will take a bit of good fortune to see this one rolling up to $1 or more, but that’s the nature of speculation.
I won’t bother with the chart today. You will see a stock that has weathered it’s summer capitulation phase and has rebounded off the bottom. It is gathering the energy for another move- I’m not sure which way, but we are closing in on commercialization as some really big numbers over the coming months and years.
Comments and questions are welcome.