Richard,
I looked at the "Form 10QSB for FRESH JUICE CO INC filed on Apr 14 1997", not too pretty.
Negatives: while the report of $512,655 or 8 cents on sales of $9,377,593 is nice, there was a deficit ($81,792) cash flow from operating activities; proforma first quarter results (old Fresh Juice + Ultimate + Clear Springs + Hansen's for the three months ended March 31, 1996) were sales of $10,036,744, loss of ($422,542) or (7) cents a share; no payment of taxes due to tax loss carry forward; working capital deficit of $365,351; and being in violation of the Debt to Worth Ratio and Minimum Debt Service Coverage Ratio financial covenants in its new working capital credit facility (bank has waived this for now).
IMO, this explains why the stock is low and leads to hope that if the company can get good profit margins on $40+ million revenue in the coming year, the stock should do really well, particulary if the next quarter indicates the aquisition expenses are behind FRSH. The whole foods sector is strong, witness the growth of Whole Foods Market Inc. (WFMI) and Wild Oats Markets Inc. (OATS). I'll continue to hold my FRSH shares.
John |
