HESG broke away nicely to the upside this morning on huge volume. The stock opened for trading at $.98, up from Friday’s close of $.92.
As I post this BLOG, the stock has traded over 600,000 shares at is printing in the $1.04 range.
If you are a buyer right now, you might want to be prepared for the possibility the stock might come back and fill this morning’s gap.
A Fibonacci retracement of this very short term move of 61.8% would put the stock at $.93. That would be the ideal entry level for short term traders.
However, the way the stock is behaving, there is better than 50/50 chance you won’t get that opportunity this week.
If you want to own the stock to see where their two new blockbuster products take this company, it doesn’t matter if you own it at $.94 or $1.04. It’s either going back to the $1.51 high, or it’s not.
I strongly recommend you go to the edition and order the free sample of SUGR. Decide for yourself if this product has a future.
As I mentioned in the weekend edition, more in future editions on sales projections and profit margins for Sequestrol and SUGR.
I bought a sample bottle the other day from the Vitamin Shoppe and gave all of my family members a taste/feel test of it and sugar. No one could do better than 50/50 at guessing which was sugar. If this company can make the product in very large bulk, and if they can get the price down to or near that of Splenda, they will absolutely rule the sugar substitute market. I promptly bought 5000 shares yesterday and have already made over $900 bucks on it. Buy!
Editor: Thanks for the input. Glad you agree. They are working on getting the price down. I believe that will be particularly important when selling in large quantities to food manufacturers.
I am a subscriber to your email newsletter, wrote your note on HESG and was quickly convinced that the story sounds good. So I bought 1000 shares and the developement directly afterwards (10% plus after my investment on Tuesday) made me believe that this was the right choice. Then I tried to understand yesterday’s counter reaction, and I finally read an article about HESG paying OTCJournal to promote their stocks! This I consider not at all a good sign, because paid stock promotion instead of unbiased analyst coverage usually tells me that there is something fishy. Please comment!
Editor: Sure- here’s my comment. The OTC Journal gets paid for the size of its audience, not it’s opinions. In fact, the contracts specifically state the company has no editorial control over our content. They have told us what they can achieve by year’s end, and if they don’t I will suggest to people they should sell the stock.
However, I am definately biased on the company, and would not have agreed to represent them if I wasn’t.
Since June 1 I have recommended taking profits on XNOM, ZAPZ (now ZP), TREN, and GEPT. Guess what- every one of them paid us for coverage. I don’t hear the people who took profits on those companies concerned about the issue.
There are 4,000 microcap stocks. Many of them deserve and audience, but it’s tough to get noticed. That is our job. Over the years I have had winners and losers we got compensated to cover, and winners and losers we didn’t get compensated for. There has never been much of a coorelation between whether or not we got compensated.
If the conflict of interest concerns you, simply sell the stock. Unless you bought at the absolute high since I published, there should be no harm at this juncture.
For further information I suggest you read the mission statement at our home page. Thank you for the question.
Hello, i am a Belgium based investor, following your newsletter from the beginning of the FMLY story
But i still believe… I asked if it was possible to send me a sample of ‘shgr’ but i have no answer…
Editor: They haven’t sent the samples out yet, but will soon. I will have a heads up ahead of time, and will pass the word around to everyone. We’ll know then if they can ship to Belgium.
What’s your current take on HESG…time to buy? Also…heard any rumblings on if the acquisition of SHUGR’s parent company has completed? The 10-Q didn’t say to much on this.
Editor: I believe we are close to time to buy. Could be a tough market in Sept, so no guaranttees of a bottom, but Oct through Dec should rock.
Any comment on HESG’s big retracement, further retracement after recent news, VC block sale, info/news on how the new products are selling, or have we been given an opportunity to buy in at a lower price in a company with a future? Thanks
Editor: If you believe in the future of either of their big potential products- the sugar substitute and the cholesterol product, I would say the stock is a definite buy here. However, I do think it will be a tough market in September followed by a race to a spectacular finish line for the remainder of the year, so I can’t say it couldn’t go a little lower between now and then.
I have also asked for a sample. I don’t understand the hoopla re how unique this product is..in particular, in comparison to Splenda, dextrose based which also has Maltodextrin and Sucralose. Maybe its all in the taste. I’ll wait for a sample and then compare.
Editor: There are two major differences between SUGR and Splenda. The first is the baking factor. Splenda cannot be baked with. SUGR can replace real sugar in any recipe on a 1 for 1 basis. When you bake with a version of Splenda you can buy in the store, it is 50% real sugar. Also, Splenda has been associated with harmful side effects.
I covered this in my July presentation on the company. For your review:
http://www.otcjournal.com/archive/listserv/20050730-1.html
used sample, like it, and will buy it when it price falls some.
Editor: Thank you for the contribution.
I am a retired food scientist. It seems to me that tagatose by itself accomplishes just about everything that Shugr claims are its advantages. I think that what would boost this product (or tagatose) would be to market it in 1 or 2 lb. bags so you could use it like sugar to bake cookies and cakes, etc.
Editor: The company plans on going that route as soon as it can beef up its orders to enough volume to reduce their costs considerably, and pass those costs savings on to consumers. All indications are that volume of this magnitude should be in the bag by year’s end. They are also working on a version without the 1.2% sucralose so the product can be 100% natural instead of 99.5%- this opens some additional doors- including behemoth Whole Foods.