Health Sciences has taken its first step towards coming out of its current extended comatose condition. The proverbial eyelids have fluttered, and the patient could have a chance of recovering.
If you own the stock from the $1 range, I don’t believe there is much hope for a recovery to and through that level. However, opportunities come in many forms, and the stock at $.14 level offers some upside for adventurous bottom fishing penny stock lovers.
This morning, HESG announced it had hired a new skipper to take the helm of this grounded ship. According to today’s news, Stuart Gold has bravely agreed to attempt to right the ship.
He is credited with developing the “Republic of Tea” along with the cofounders of Banana Republic. The press release does not disclose the performance history of the Republic of Tea.
As I have been saying all along, the current management team of this company has fallen flat on its face. Last summer, when I first tried their flagship product and agreed to cover the story, I was given a formal projection of $10 million in sales for 2005. The number came in at virtually zero.
While SHUGR has gotten some traction in the market, supplies are limited now and most retailers are out of the packaged product. The company had a lousy $30k in cash as of their last SEC filing.
Here’s a chart of this unmitigated disaster:
The only thing positive you could say about either the company or the chart is that there might be nowhere to go but up.
However- here is my major concern. In order for this company to move forward, they need money. I’m pretty sure they can get money, but at what terms? How toxic will it be for existing shareholders? I’d like to see that information before suggesting this stock could or should be bought.
On a product update-I still believe in SHUGR as a potential blockbuster product. Their cholesterol lowering product, Sequestrol, was a bust for me. It is the most foul smelling vitamin, and had very negative effects on my stomach. I stopped taking it after a few weeks.
All I can say at this point is that the company has taken the first step. It can only get better, because bankruptcy was probably the alternative.
There must be some sort of plan to resurrect this company in place. Otherwise, they wouldn’t be bringing in new management.
If you want to take a big risk, the stock might be a buy at this level. Comments and questions are welcome.
so we have a new ceo,who of the old management will stay and who will be asked to leave???also are they still selling anything or have all sales stalled til the new management and financing are in place??
cheers
bryan
Editor: I was informed I would get an update on their progress sometime next week. However, I will be vacationing and probably won’t really have a handle on what’s going on for another week or two. Will keep everyone informed as I learn the details. Suffice it to say, I don’t believe they would have a new CEO unless they had a plan in place to give him a shot at turning this thing around. However, I am concerned about the cost of that money.
Big question is who has legal rights to Shugr now–Miles or HESG. Can you clarify this? If HESG has lost its right to Shugr, then bankruptcy is a likely outcome.
Editor: HESG has the rights- The other guy’s objections were thrown out of court almost immediately. The real question- can they ever sell the product?Â
Does anyone know why the stock is going up and why there is such a large volume being sold. I am glad but am wondering why.
Editor: Clearly, something is going on, but no one has clued me in.Â
No updates in awhile from you. ANything new you can tell us?
Editor: I noticed the pick up in activity as well. Don’t know what’s going on. Will advise when I find out.Â
I believe it’s going up because HESG announced that they are officially going to begin airing their infomercial on Sequestral — test market runs during Sept 7-13 – and then rolling the infomercial out nationall.
Editor: I tried the stuff for a few weeks and didn’t like it. I did a blood test just before starting so I could test its effectiveness. However, the stuff was too tough on my stomach and it had a brutal odor. Nevertheless, if it sells, great.Â
For the Sugr product to every really take off, it must be picked up by the diet soda companies. Does anyone know how long the big diet soda companies are locked into their current contracts for artificial sweetners?
Editor: Haven’t had an update with them in a while. The stock seems to have found a level it likes. Perhaps things are looking up. Maybe I will try to get a feel for what is going on. It seems to me you are right- the numbers to make this really successful need to be an an additive to other produced foods and beverages. The answer to your question- I just don’t know.Â