This BLOG posting has been set up specifically for you to share your thoughts on SHUGR. I personally use it, and I believe it is the best sugar substitute on the market today.
HESG just introduced this product to the market this past summer, and they are beginning to get sales traction and recognition.
While I believe there is a substantial market for direct retail purchases, I also believe the holy grail for shareholders of HESG comes if and when the product becomes the sugar substitute of choice for mass marketed foods and beverages- i.e. included in major bakery products and/or beverages. You have to be a shareholder before it happens if you are going to make the major gains.
Please take the time to share your thoughts on SHUGR. Over 2,000 individuals requested a free sample, and I would appreciate your impressions on the product, the company, and the stock. Everyone with an interest will be able to review the comments.
Please use the field below to submit your comments.
Simply put, I came I saw I don’t like. It has splenda in it, not good for you, stevia is a much better altenative to sugar than shugr!
Editor: You and I disagree on that point. I have Stevia right next to SHUGR on my shelf. Taste wise, they don’t compare for me. SHUGR is much better.
How can HESG use Sucralose (spelling) (splenda) in Shugr? Is this a patent law violation? Don’t you think there is a possibility they could be sued by Mcneil (Johnson & Johnson)
Editor: Of course they can use it. They buy it from them. That’s what they sell it for- to be used as an ingredient. If they made it themselves, that would be a different story.
I have tried all sugar substitutes. Shugr is the best, hands down! It is sweet, no after taste whatsoever, & if all of the health claims by HESG are accurate – It is better for you than the rest. I have spoken to many people who have used the product and without exception they have had the same positive reaction as I have!
Editor: Love the product- hate the stock right now. However, a lot of very good things in the pipeline, which could be setting us up for a strong ’06. This product is slowly getting recognition.
I think its important to mention that Shugr was non-existent prior to its launch in the spring of this year. In a little more than nine months the product has achieved national distribution in the countries two most prominent healthfood chains. In addition, it has already been picked up by a number of key regional retailers in the grocery and pharmacy classes of trade. Being a guy who sells brand name consumer products to many of the top retailers in this country, I can tell you that it takes anywhere from 3-6 months just for these big retailers (ie Wal-mart, Albertsons, Ahold) to get you into their distribution and on their shelves. As a shareholder, I’m looking forward to seeing Shugr in all of the big chains in spring ’06. And, if this happens, you’re going to see the stock price respond with neck-breaking speed. If Shugr is able to capture just 1-2% of the sweetener market next year, they are going to be posting some strong numbers. I’m betting that they can do it.
Editor: In defense of the company, I can tell you they have been taking the advice from several consultants out of the industry. They wanted to secure supplies at the right price before getting into larger orders, and as such were delayed six months from their original time schedule. The same this happened with Sequestrol- they reformulated it with less dependence on Korean ingredients to assure a reliable supply. I hope your forecast comes to pass. Thanks for the contribution.
In defense of the company? Can the company explain why the expences incured were so high on the last quarter? EX: Professional, legal and accounting expenses.
Editor: I would encourage them to do so.
What time frame are we looking at before we see sequestrol on an infomercial & what revenues initially can be expected?
Editor: I am encouraging them to publish a strategic initiatives press release laying it all out. I believe it will happen next week.
I beleive that Shugr is a fantastic product, however, I am at the point where I have trouble beleiving any of the statements made by HESG managment in their press releases. In a press release several months ago they projected between 15-40 mil in rev. for this year. 3rd Quarter Revenue was 19k. They offer no explanation for this. Furthermore, in their press release on Nov. 22 they said they expected to sign the distribution with DNP next week, its been 3 weeks and we have heard nothing. Why not make the press release once the agreement is signed. Also, how are you able to maintain your objectivity when your company is being paid (with cash and stock) by HESG to cover them. This seems like a conflict of interest to me.
Editor: You have the facts, and I can’t dispute them. They are clearly way behind where I expected them to be, and they expected to be. With regard to objectivity- my client companies only pay us for exposure to our audience, not for opinions. I start out biased towards the companies, but if they don’t perform after a certain period of time, I go negative. I am not objective at the beginning, and admittedly so. I believe the end of Q1 of ’06 is a good time frame. If they don’t deliver some tangible result by then, I will advise everyone to take their loss and get out.
I originally agreed to represent the company because I liked the product, and I very much believe products that help fight diabetes will be huge in the coming years. However, like you, I believe they better prove they can get it sold, and prove it soon.
Have your heard anything more about the distribution agreement with DNP that was described in the companies last press release? The press release implied that the agreement was a done deal, but I am skeptical since there have been no follow up announcements. If this agreement gets signed, this is great news for the company, the min. sales numbers should allow hesg to stay afloat for next several years. If they also sign the agreement with the china distributor, the should have a good chance to be profitable by 2008. However, management has issued some speculative statements in the past that proved to be very innacccurate. I’m wondering if these proposed distribution requirements are more of the same bull? Have you heard anything in addition to the last press release? Thanks
Editor: I’m afraid I can’t enlighten you further at this time. However, as soon as there are developments, they will be reported. Anecdotally, I can tell you management is very excited at the company. As you rightly point out, they have jumped the gun in the past. This time the stock is already reflecting poor performance, so any move in the right direction should be liked by the market.
Well, a few good trades have given me a decent position with an average price of just .40 and I’m much happier owning HESG at that price than I was before! I’m wondering what impact the good news at SPEX will have on HESG? Looking for a strong move in HESG as promotion picks up in the new year… at the same time as the press starts running stories on New Year’s resolutions… here’s hoping for some earned media on Shugr, strong sales and great revenues in 2006!
Editor: Spoke w/management earlier this week- signings of distribution agreeements and po’s are very close. Could be a decent year for the company next year, albeit a year behind schedule. I just think the product is too good to not sell.
editor we are way past your optomistic 75 cent entry point.now you are telling us if things do not go well by q1 o6 you will tell us to get out? the price will be sub 20 cents.it is easy for you to give advice after the management has failed to deliver and the share price has tanked!!
Editor: HESG is not over with yet. The stock will have some sort of resurgence in 2006. Once it happens, you can re evaluate. If they don’t prove they are on track for $10 million in sales, I will drop them. I don’t take my cues from the price- I take them from the corporate performance. The product is so good it’s worth waiting another 3 months to see how things come out.
Editor Sequestrol seems to be a much more profitable product over Shugr. I’ve heard that it was to be introduced this year. Apparently not….. Do you have any idea when this new product will be introduced? And could you give your opinion on which of these two products you think will be more benificial to the company. I would like to hear your take, on Sequestrol. TIA
Editor: I am told Sequestrol will be introduced in Q1. It will be sold only through informercial. They are working on four different offer structures. They will test each, and do a major nationwide roll out sometime in the March/April time frame. Of course, that is their estimate. They were wrong about their time estimates last year.
I believe in the short term SHUGR has the greater potential. It can be purchased on a much more mass scale than Sequestrol. A few big orders, and the whole complexion of the company changes. Also- the margins are excellent.
They are working on four different offer structures? Will there be different informercials of which they will pick the most receptive to run with? They will test each, and do a major nationwide roll out sometime in the March/April time frame. The nationwide rollout, will that be something other than an informercial? Please explain. TIA
Editor: I believe the infomercial will be the same, just the way you can buy it will vary. After testing all four, they will go with the one that works best on a large scale. The nationwide rollout will be of the final version of the informercial I am told.
I went to a local Vitamin Shoppe over the Christmas holidays to see if they had Shugr… and not only did they have it in stock, they were sampling the single packs at the cash register with a display and $2 off coupons for the 1.3 pound jars! That was a great surprise… here’s hoping exposure leads sales and the share price follows!
Editor: Some good stuff should be coming out on SHUGR in the first couple of weeks of January. Good to hear Vitamin Shoppe is making an effort.
I hoping you, or someone else following the company, can help me make sense of the following: For the 3rd quarter ending Sep 30 2005, the company posted sales of $19,382. During this quarter the company issued the following press releases: “Initial Shugr order shipped to GNC”, “Shugr Orders mounting at DNP” and “Brisk Shugr Sales at GNC, GNC Places 2nd order”. All of these orders should have contributed to sales. If these press releases are remotely accurate how could sales only amount to 19k? 19k is like 3,000 bottles of Shugr. That’s absolutley nothing. Is the company trying to deceive the public with these press releases? Each of these orders should have contributed to 3rd quarter sales. Are there accouting issues that I’m missing? Are sales this small because these orders are trials orders and therefore, pathetically small. This wasn’t implied in the press releases. Do you think you could research these issues? You must talk to people at the company since they are paying you. Do you know why the distribution agreements are taking so long? If you are able to speak with people at the company, you should tell them, that they (I guess mainly the CEO whose quoted in the press releases) is responsible for the companies plummeting stock price, he created these unrealistic expectations by issuing guidance that wasn’t rooted in any type of reality. Nevertheless, it appears that Shugr is doing pretty well. DrugStore.com is out of the 100 packets bottles and said that they will be restocking in a couple of weeks. If you go to the Vitamin Shoppe website and do a search by popularity for Shugr, it comes up as the 6 most popular item under the Stevia section which contains like 50 items. I would expect sales for the 4th quarter to be at least 6 figures, but who the hell knows with this company. Now it appears that they have stopped issuing press releases. Is this intentional because what they have said in the past backfired? Or, do they just have nothing positive to report. I would be interested to hear your opinion (or other stock holders) on these issues. Thanks.
Editor: All sound observations, and I can’t defend the company on any of the points you bring up. The market was clearly surprised by the Q3 numbers, which explains why the stock got clobbered. The distributor minimums in ’06 should help right the ship there. I make sure management at HESG reads the BLOG and hopefully your contribution will have some positive effect on their conduct.
I live in Atlanta GA and am trying to find Shugr. I tried several GNC shops, but they haven’t heard of it. My daughter purchased some from a GNC near her. When is this going to be sold or listed on GNC’s websites, stores and other grocery stores? Many have been waiting for a more natural product instead of Splenda and I believe this may be it. According to my scant research, GNC placed an order for this in August, but that may have been for trial purposes. Please advise. Thanks!
Editor: Apparently, the orders from GNC were not for all the stores nationwide. I am hearing they will be this year. They should have it at your local Vitamin Shoppe if they have them there, or you can order online at Amazon for the best price of all.
Editor: Do you have any idea as to which week in December QVC will air SHUGR? And could you try and influence the company to update their website and provide us, (investors in HESG) with information on QVC, up coming events or progress the company is making. How about a letter to the shareholders? http://www.healthsciencesgroup.com/index.asp
Editor: Working on one of your suggestions right now. The web site issue I will bring to their attention.
Any idea what’s up with the stock? Down another 8 cents today.
Editor: I believe it is capitulation selling- probably time to buy. I haven’t gotten any inkling from the company that anything has changed.
Question #56 What time frame are we looking at before we see sequestrol on an infomercial & what revenues initially can be expected? Editor: I am encouraging them to publish a strategic initiatives press release laying it all out. I believe it will happen next week. Comment by Doris Ann — 12/7/2005 @ 6:37 pm Nearly ONE month past…. Is it a dead issue at this time? Are we now looking at the end of the first quarter before the introduction? Thank You for at least trying to answer our questions. How often do you contact them?
Editor: Look for an update very soon from the company on all these issues.
Any thoughts on the resignation of the accounting firm representing hesg
Editor: Not meaningful. The only thing that matters for this company is sales.
Couple questions regarding the latest press release: -The company did not mention anything about the QVC program that was supposed to air this January. In the previous press release they implied that this agreement with QVC was signed and completed. Should we assume that this plan has fallen apart? -Also, is the proposed agreement with DNP an exclusive agreement? Its pathetic that the company didn’t mention anything about the QVC program in this latest press release. Please let me know what you think. Thanks.
Editor: I will look into it.
I know this is getting old, but will we hear about the airing of SHUGR on QVC this January before it accually takes place? If so, where? Web site,PR?
Editor: I’ll make sure of it.
Editor How often does Lori Greiner appear on QVC? It looks like her next showing is on Jan 28th. Will SHUGR be on display on this date? Do you have any idea when her next showing will be after the 28th? Thanks
Editor: I have emailed both the principals of HESG to find out the status and haven’t gotten a reply yet. Will update everyone on the QVC situation as soon as I know.
Editor, Do you know if they are honoring their statement regarding a news letter to subscibers? I have applied 3 times times for this news letter,(dating back at least 6 months) yet have never recieved anything. Have they ever distributed info in this manner? Subscribe Now! If you are interested in receiving news, information and resources on Health Sciences Group, we invite you to join our subscriber list. As a member of our database you will receive up-to-date news and information, press releases, and other communique which we may distribute from time to time.
Editor: Apparently, they don’t have a lot to say. Plus, if they aren’t delivering information, it is just another reason to sell this stock. Clearly, they are not good at following up on promised results.
Did you ever get a reply to your email? “Editor: I have emailed both the principals of HESG to find out the status and haven’t gotten a reply yet. Will update everyone on the QVC situation as soon as I know.”
Editor: Yes- they updated everyone on the QVC situation. It is either in the BLOG or a past edition. It can all be found on the site.
In your opinion, with the current sellers, or stated future sellers, do you think HESG can obtain their goal of 10 million in SHUGR sales this year? Do you believe that statement is obtainable? If not, in your opinion, How much do you think they could bring in? TIA ” We expect sales of Shugr(R) to ramp up dramatically in 2006 and based on preliminary indications of interest could approach the $10 million level.”
Editor: I don’t believe they will achieve $10 million in sales from the retail outlets. They can only achieve these kinds of levels by being an ingredient in some or many larger products. Could it happen? sure. However, predictions only have value if the predictor has a history of being right on past predictions. HESG does not. Therefore, without tangible evidence that sales will ramp up, I will re-evaluate and possibly drop this one at the end of March unless convinced that sales are coming not from predictions, but from tangible events. The end of March is an arbitrary time frame, but sometimes you simply have to draw a line in the sand. In the microcap world you are going to have winners and losers. My biggest mistakes of the past have always been to stick with the losers too long. I am trying to use some discipline to avoid that behavior.
Hi, You guys are so predictable. You should work for Crammer. Rec. a stock at the high, and then slap a sell on it at the low. btw Cramer (and you by default) are contrary indicators of a stocks performance….do you know what that means? For example the deal with DNP for 10.5 mill. is a Minimum. DNP is very conservative in their deals so it is probably 5X that. So go ahead and rec. a sell on a co. that just signed a $50 mill. contract. Sequestrol. A block buster in a 19 Billion dollar market. In production now, and ready to roll, but you thought more of it when it was just a twinkle in your eye. Stay on the sidelines yourself, but help your readers make money for a change. Have you looked at he management and advisory board bio’s lately? I am buying, based on your sell rec. Thanks for being a reliable contrary indicator… Works every time Analyst or Anal-yst?
Editor: You could be right- good luck with it. Sometimes we can be a contrary indicator. However, the opposite has been true on a number of other ideas. You are just picking one out that has not worked so far. How about KAL at $1.04- TLPE at $.23- NIHK at $.09? Nevertheless, investors often make the most money by buying at the point of maximum pessimism. We could be there. Nice to read about someone defending this company.
Sorry, I was too hard on you with that last post. Nice professional response! When I said look at the management and advisory board bio’s, they are very solid. I look for stocks with solid management backgrounds. Look at the advisory board, it is stellar. If execution is lacking, what are the reasons, and you have provided some valid ones….bulk supply issues, changes in formulation etc. I think they will get it together because management, directors, and advisors with those bio’s may stumble, but they never fall!! Thanks again for your response, I did not think you would publish my last post, but to your credit you did.
Editor: one of the main purposes of this BLOG is to provide a forum for varying points of view on these stocks. I want everybody to be able to read the “other side of the story”. Thanks for your contribution. The advisory board is strong, but the actual management team is weak and has little experience in the industry. I believe one of the keys for future success might be bringing some of the advisors into the company.
Do you know what the hold-up is on the Japan deal? Can you find out when we may get an update on this topic?
Editor: I believe there are much greater things in the works here. There is a strong possibility a major transformation is in the works. Stand by.
could you elaborate further on this “major transformation”.
Editor: Not at this time.
I hope this “major transformation” is something more than a new website, because if it is that is absolutely pathetic!!!! How can you make a statement like “a major transformation is on the way” and say nothing else. You obviously got this from managment. This seems very shady and unethical to me. We not be more specific, your leaking inside info anyway?
Editor: Read into anyway you want. Sell the stock if you are concerned. I am rating it a hold for the time being, but something needs to change for me to continue covering the company. Any more questions of this nature will not appear on the BLOG. I’ll delete them. I don’t know exactly what the future will bring any more than anyone else does. I just know the company is attempting to make some changes.
Sorry for repeating myself. I was just asking if the japan deal was still alive, and if you had any idea when it may be metioned again, or what the delay might be? Major transformation? I’m hoping it has something to do with increased revenue.And the way you worded it, it sounds like it could be bigger than the Japan deal. Fingers are crossed. There has been absolutly NO insider info passed on here. Please keep the channel open. Thanks, Brian
Editor: I have had two conversations with the President recently, but the subject of Japan deal has not come up.
I see that you have more than one OTC blog. HESG- Tell Us What You Think Of SHUGR. And the BLOG? lol I enjoy reading your comments. Are there any other sites,or links that I should watch for? TIA
Editor: I love the product SHUGR, but don’t love the company. Something needs to change there for my involvement to go on. Not sure about other sites.
What’s going on with HESG… more than 1 million shares traded today and we hit a new low of .20? Obviously there’s something in the works… thanks for keeping us up-to-date on the latest news… seems like the company should be a Strong Buy at these prices!
Editor: Based on the way the stock is trading it is clear something has changed. The volume is your clue. However, since I don’t know what it is, I can’t make an intelligent comment yet. I would not rush out and buy the stock.
editor, Have you seen a growth in manpower, (personal) within the company, since you started covering this? Or perhaps, with this type of bussiness, most everthing is out- sourced? What is your take on the before and present size, and strength of the company since you started following this.. TIA
Editor: My take on the company is they have failed to deliver on promised growth. That may change soon, so I’m not quite prepared to tell everyone to take their loss and move on. The million plus share day earlier this week portends some change, likely to the negative for existing shareholders. I’m still in hold mode on this one until the smoke clears, but a big disappointment on the delivery side.
You really didn’t address my question. But thats ok. How about this one. With only about 11 people at Health Science Group, They have to be contracting out the production and distribution of SHUGR. Can you give a layout of how this bussiness is run? I realize that HSG has bought out other companys, but there is no info that I can find that gives any reference as to the number of people, who are working to develop this company into a renoun bussiness. Can you enlighten us, as to how this bussiness is laid out. ( who does what ) ( number of total employee’s) Your much more informed than we are. What can you give us? TIA
Editor: At this time I cannot. Working on a comprehensive update soon, and a decision concerning whether to drop this idea or suggest averaging down. You are asking for information I do not have at this time- give me another week or two.
In your comprehensive update coming in about a week or so, Is it possable to include the status of the of the other products that will be coming out soon? I look forward to seeing and understanding the layout of this bussiness.
Editor: I can’t give you a timetable. It depends on corporate developments. I can tell you I think the year end financial statement is going to be terrible. There needs to be a major change for this company to survive and eventually prosper.
Sequestrol is out… but I read that on Yahoo! Finance before here… why isn’t the company giving you a heads-up if they are hiring you to generate discussion of HESG? It seems like the questions posted here have been fairly basic… and before I jump back into another 50K or 100K of this stick, I’d like to see them doing more to communicate with those of us who are interested in investing!
Editor: I knew about the release of Sequestrol- In fact, I have some to try. However, I am not encouraging anyone to buy this stock right now. True, they have hired me to get exposure for the company, but they did not pay for my opinion, just the size of the audience. I don’t believe anyone should buy anymore of this stock until there is some major change at the company. The current management team is a complete bust. They are working on some changes right now. If they pull it off, I will recommend the shares again. If they don’t, plan on taking your losses and moving on. It happens in the microcap world. For the time being, if you own it, I would just hold it and wait.
We all agree that you are negative on the purchace of any more shares. But with alittle help from YOU, we hope to better understand their plans or realistic time frames. You are by far the most informed individual here. Help us out alittle, rather than your constant bickering. My recent questions were not asking for any inside info, rather, just a better understanding of the company. You were hired (payed) to cover this company, shouldn’t you try and do your best(without breaking any rules) to answer any questions put forth? I know its your opinion, but alot of us are in for the long haul, how about easing up on the negative comments, and helping us out a little.
Editor: Do you want me to ease up on negative comments, or do you want the truth? If you want anything but the truth, find another newsletter. The truth is, if something doesn’t change dramatically, there isn’t going to be any long haul. It will be over and the company will be in bankruptcy. Now, without breaking any rules, that is all I can say. If I didn’t think there was a chance for dramatic change, I wouldn’t be suggesting a hold, not a sell.
You may have had Sequestorol… but why didn’t you post anything about it? Also, what about the comments that Tagatose production has stopped… is that true? There’s no analysis here… the sales were lousy and I don’t see any reason to hold or buy more… I dumped all my shares and expect this to head down under .20!
Editor: As I have been saying, I’m looking for a major change here. If it doesn’t happen, I think it will go below $.20 on its way to zero. You could have made the right move. Time will tell.
Wow – I’m getting a sinking feeling along with my stock holdings… A new low at $0.16Do you still rate this a “HOLD”?
Editor: Only because it hardly seems worth selling. I do believe the company has a real shot at a turn around. It seems to be taking some time.
My wife is a diabetic and I foung shugr in a vitamin shop and its great but pricey. She loves it. It tastes better than regular sugar to me.
Editor: Agreed- that’s why I agreed to cover the company- because I liked the product so much. If management could sell it, we would have a big win instead of a big loser.
Eleven cents on closing today. I’m closing in on an 80% loss of investmentAny indication of what form of panic attack has driven this stock to a new low? Can you tell us whether the company’s dispute with Loren Miles has been the obstacle to a more robust production and distribution of Shugr? Are these guys gonna get their act together or what?!?
Editor: As I understand it, they sued him and he lost- he was thrown out of court. However, that is unimportant. What is important is new management. Without it, I am reasonably certain the remaining 20% of your investment will be lost. They are working on it.
How is your trial going with Sequeserol? Any readings? Feel any better?
Editor: I stopped taking it after about two weeks. It had a very negative effect on my stomach. It is one of the most foul smelling supplements I have ever encounter. I believe they will have to alter the formula if it is going to sell.
Do you know of anyone within HESG that is willing to answer questions via email? Do you have their address? Thanks
Editor: Try Fred Tannous at fred@HSciences.com.
Greetings! Do you have any comments on the new CEO??? I’m surprised no one has asked. This long anticipated Management change, together with the Shugr product itself, seemed like a very worthwhile shot for only 11 cents – I just bought 100k worth …
Looking forward to your reply and thanks, PN.
Editor: I don’t really have any details yet. I know they are still working on the informercial for Sequestrol. The company wanted to bring me up to date next week, but I will be travelling. I will keep everyone informed as information becomes available to me. As I said in the BLOG- probably only for the most adventurous of investors. I still want to see how they are going to raise money to give this guy a shot.
Any feed back on infomercial results? I wonder if they’ve generated any sales or potential sales through their limited campaign. I sure would get excited about seeing a few million $ in orders!
Editor: None what so ever. They have not contacted me in a long time. I believe I will make a phone call today.Â
So – Any response from the corporation reagrding the infomercial impact?
Editor: I don’t expect any response. The company’s only chance it to go after this “Red Tea” Khalari acquisition. If they can get it done, the company could be reborn.Â
I see HESG missed a filing deadline with the SEC. What’s the story? Hope they are allocating their time to save the company rather than simply going out with a whimper…
Editor: The filing isn’t too meaningful. They are currently out trying to raise money to acquire Kalahari Tea- if they can do it, they will probably reverse split the stock, and it will be game on all over again. Without completing the acquisition, they have nothing but a corporate shell.
So Khalahari fell through and Gold resigned. Sounds like this turkey is officially dead meat…. unless you see something on the horizon I can’t see?
Editor: Your vision is clear- over and done. This will turn into a shell, and someone will pick it up and restructure it someday.
I bought Shugr for the first time, and my husband and I use it on cereal, fruit and we even used it to make homemade ice cream. It was wonderful, the texture is a bit grainy and there seems to be a slight bitter aftertaste, but not like splenda and other sugar substitutes. I hate diet tasting sugars and this beats all as far as taste.
Editor: Too bad the company completely failed.