TCBG is poised for a major runnup due to T/A and a PR late yesterday concerning a doubling of production. Many will no doubt think I'm hyping, but my definition of hyping is when someone posts at the end of a run to further enhance one's position. Not the case here.
One look at the blue volume from the following graph will provide important history about the last few moves. You can really go to school here. Be on the lookout for >200K / day with price up. The neat thing about this stock is that the MM's give you plenty of warning before the fireworks begin, but be forewarned once she goes they will make you chase the ask. Been there, done that. If the link doesn't connect, look up TCBG on www.clearstation.com.
clearstation.com
Must read info on "double bottoms" in ClearStation relates to TCBG exactly:
clearstation.com;
TCBG ended this phase, including the weaker selling volume during the second downtrend.
If yesterday's 300K vol is beat today then she may embark on another runnup like the last two.
For those who are new to TCBG.......
Ever try inserting the straw through the foil on a CapriSun juice pouch? Messy right? Especially for children.
The Children's Beverage Group's patent pending juice pouch has a laser score line you tear which releases a built in straw system. "Rip It Sip It". School systems will appreciate this feature. TCBG manufactures the pouches for private label companies. The first is WalMart and is currently in their supercenters only, in limited quantity. The foil pouches are etched in brillant graphics very appealing to kids and sell for less than Capri due to the special Volpak machines from Spain which TCBG has first rights to.
The stock took off last due to anticipation of the WM deal which many didn't believe would happen. After all, this is a BB stock right? Well the product is flying off the shelves:
newsalert.com
More machines have been installed and the rollout into all WM's is to come by end of April / early May. There will no doubt be a PR. Currently only 15% of the nation's WM shoppers (and potential investors) are aware of this product (supercenters only). When the other 85% become introduced through WM's "VPI program", whereby the product is well positioned by the pallet load, then TCBG will be recognized.
newsalert.com
I believe another very important upcoming PR will add fuel:
Rochester, NY has offered millions thru tax breaks and financial aid to set up a manf plant for at least 12 more machines to support futher contracts with other private label grocery chains. Iemailed the RBJ to confirm the story, here's the reply:
"We did do a story about that but it probably did not appear on our online
edition. It was in a Friday print edition. You are correct, that if the deal
goes through and TCBG can get state and city help with financing, tax breaks,
etc., it will build with a starting number of employees at 150. The CEO said
it would take four months to build and get online after everything goes
through. If you want a copy of the story, you'll need to talk to our
circulation director, Suzanne Seldes. Her e-mail is rbjcirc@aol.com. Thanks
for your interest."
Winn Dixie is the next deal. They have 1200 stores with $13.6B in sales (1998). Then H.E.Butt, the nations 12th largest food retailer at $6B sales (1997) and 245 stores. CEO has mentioned talks with many major chains including Kroger, Safeway and Costco.
Revs are projected at $20M this year with $60+M for 2000.
CEO keeps talking about financials being released soon and Nasdaq listing, don't all BB's???
TCBG is a sponser on the Eddie Cheever IRL racecar. He won a race earlier this year showing off the TCBG logo from the car and pit crew uniforms for the nation to see.
teamcheever.com
If you don't think this is a worthy means of advertising, check out Racheals potatoe chips who was the primary sponser for Eddie last year when he won the Indy500. To sum it up Racheals just backed down from the sponsership because they need the capital to rapidly expand production due to the exposure from the Indy500.
In summary we have a BB stock with a real product you can touch and drink (BackPak by WM), demand is overwhelming supply, it's cheaper and better packaged than the competitor (CapriSun), revs are forecast to triple next year, price is coming off a double bottom, vol spiked yesterday and if it increases today we may see another run.
Many posts at Raging Bull. Problem is only 1 out of every 10 are actually informative.
Good luck.
Steve |
