Many apologies to my pals at Health Sciences Group. Thanks to one of the faithful, I recognize I had a typo in last night’s edition on HESG’s latest contract to sell SHUGR.
With regard to the new contract with LavazzaStore: I stated they “ not start offering SHUGR”- I meant to write that they would “now start offering SHUGR”.
Many apologies to our friends at HESG who are working their butts off to try company rolling.
Editor, the first sign of life indeed as you mention, so it seems they are still concern in trying to get their products rolling, but again it takes LOOOONNNGGGGG times and after that show just little progress. I am currently 70% in the hole with this investment and I was hoping to get AMAZING news …. hmmmm … not sure what to think of this now. Do you have more info on when the next Q-numbers will be published? They should be right around the corner. Any idea if these numbers will be another upset. Unfortunately, my expectations from this company is getting lower and lower, even though I do believe in the SHUGR, at least when they are will be able to sell more of it and thus be able to drastically reduce the pricing. J.O.
Editor: Your comments reflect everyone’s sentiment on this company. A lot of us love their flagship product, but they are just not delivering the sales. Next numbers will be year end which are due end of March- q1 mid May. I expect the numbers to be pathetic. One year ago they were making very optimistic projections for their products- they have fallen flat on their faces to date, but with some luck that could change. As I have stated in the past, at the end of March I am going to re-evaluate my position on this company. If they have made progress, I’ll keep covering them. If they haven’t, I will drop them if I have to and move on.
Wow, that’s an incredible turn in your position on HESG. When I bought my first position in HESG, which was due to your recommendation, you were very excited about the stock. Now you are leaving your readers behind and in the hole, “moving on” as you call it. This surely does not speak in favor of yourself or OTCjournal I have to admit. I thought you are in close contact with the company and I was expecting a warning, if necessary, substantially earlier than now where a large chunk of my money is already gone. And on top of all that it seems as if you are now even starting to go enitrely NEGATIVE on this stock. This was my first attempt with a recommendation from OTCjournal and it seems to me now to be my last either. I am very upset about the company, the stock and your recommendation and current coverage. Now, that does not give me my money back, but at least helps me release some steam. I am interested if you will post this comment as well!?
Editor: When I first introduced this company last summer everyone got a free sample of their product and a lot of people liked it. That was coupled along with the company’s- not mine- projection that they would achieve $10 million in sales by the end of ’05. They have acutally gotten some distribution, but nothing even remotely close to what they promised. If you only want good news in the microcap world of investing in small, young companies, you have come to the wrong place. However, sometimes companies fail to deliver on promised results. All you will get from me is an honest appraisal of what is going on. These guys have not delivered on promises, and sometimes you have to take your lumps and move on when it doesn’t go as planned. The worst thing I could do is not deal with the unfortunate reality.
Why not drop them now? What do you hope to see in over the next 6 weeks to change your mind? Your negativity is getting old. If Q4 is pathetic, do you really think that Q1 2006 will be any better? Come on, we all know that this will take time. And QVC, give me a break. You have stated in the past that commercial revenue is where its at so what gives? I get the feeling that your focus is short-term and I have invested in this company for the long-term. If your original timeline for this investment was less than five years you made a mistake. Don’t bring the rest of us down with you because you signed a two year research agreement with HESG. This is a new business and will take time to get rolling. Give them a fair chance or leave it alone.
Editor: The biggest mistake I have made over the years is staying with the losers too long. They promised $10 million in sales by end of ’05 and delivered a virtual zero. I am not interested in repeating mistakes of the past. However, that is just my opinion. You obviously have a different one. If the company delivers great stuff over the next month I will continue to cover them. If not, then I won’t. That doesn’t mean you have to follow suit. If you want to be in longer term, then good luck to you. I still hope the company gets traction on what I believe is a great product.
I believe that after Lavazza has showed interest in this comapany it is a very big step towards getting its name out there. Lavazza stated that it prefers using Shugr in its products because of the lacking after taste and its quality. Hopefully this is positive feedback for other companies to start taking notice. I feel that HESG will make it, although a very bumpy ride along the way, but I also feel it may take awhile. How do you feel about HESG as an entry level around it’s current price, .30-.35? Do you think it will drop much lower than this?
Editor: I am rating the stock a hold right now, and am not anxious to suggest people jump in. In fact, if they don’t start delivering some major fundamental developments in the very near future, I may drop coverage in a few weeks. Last summer when I met with the management team they told me they would be generating $10 million in annual revs by end of ’05. Not even on the same planet, let alone close. Something needs to change or I will drop it. If the company gets some things going it will be an excellent buy down here. But since they have failed to deliver on two sets of forecasts, I would suggest staying on the sidelines for now.
good morning editor how about an up date?dnp,how are sales really going?shugr?distribution in europe,asia,middleeast,and japan this deal was to be signed in a few weeks(as reported on jan 06th)it is now a few months.and sequesterol,5 to 11,million in sales this year,can they make all this happen or is this all smoke and mirrors???? cheers bryan(am getting very low on confidence with these guys)
Editor: Clearly, something has changed based on the selling volume. I don’t know what it is. As soon as I do, I will let everyone know.
HESG filed an NT 10K (notice of late filing) dated 4/3. I suppose this could be related to the recent selling. I also noticed two 424b3 filings dated 3/23, one for approx 5 million shares and the other for approx 8 million shares. I have no idea what a form 424b3 is, or why it would be filed. Could you explain? Side note: I do not own any shares of HESG, but Shugr looks like a great product and I have been waiting for an opportunity to buy. However, the latest filings are starting to scare me off.
Editor: The late filing of the 10k is no big surprise with these guys. With regard to the registration statements and iterations thereof, I am not really concerned about those. The company had a contractual obligation to file those registration statements, but most of the shares underlying those reg statements have already been sold under Rule 144. I am still rating HESG a hold. There could be some major changes coming which would allow this stock to become a buy for either a long term hold or a trade. However, as the company stands today, I cannot get behind. The current management has failed miserably to deliver promised sales.