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Microcap & Penny Stocks : FRSH
FRSH 11.08+1.5%3:59 PM EST

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To: puzzlecraft who wrote (354)11/16/1997 11:44:00 PM
From: Kevyn Collins-Thompson  Read Replies (1) of 531
 
John, I read through your interesting company visit report (and the rest of the thread). Thanks for posting the report.

Here in Seattle, the upscale Queen Anne Thriftway recently began stocking Hansen's. A mix of smoothies occupies half a fridge shelf, Odwalla is the other half. Odwalla sells a 16 oz. spirulina-based green gunk for $2.99 which tastes pretty good. Hansens sells an almost identical product, but for $1.99. Frankly in a blind taste test I'd likely prefer the Odwalla, but the difference is so slight that saving a buck a bottle seems like a good deal. Most other smoothie products were priced the same as Odwalla's. The Odwalla labels are prettier. The girl at the checkout said that I would be the store's guinea pig.

The current stock price (2 5/8) does seem attractive, given that the Hansen's acquistion seems like a solid purchase. However, the margins in this juice business are so small that (as several others on the thread have pointed out) earnings could really be erratic. In my opinion, if the company can at least sustain annual earnings of around 0.20/share then anything at 2 1/2 and below is a good deal; it looks like they're getting there (slowly).

Kevyn
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