Dave,
Last April 15 in a post to you in this thread, I said "Bottom line, I'm outa here". I sold that day and have not held FRSH since, although I continue to monitor FRSH.
Looking at the latest 10Q, the company kept Selling, General and Administrative Expenses at a stabile level, the problem was pretty simple... lower sales and lower margins due to a higher relative cost of goods sold (gross profit dropped from 30% to 26.6%).
FRSH's cash flow continues to be positive. Equity per share continues around $2.00. I would think that would provide some kind of base for the stock. Today someone apparently put in a market sell of 10+K shares, and the MM's gladly took the stock to 1 1/4 before sanity returned bringing the stock back to 1 11/16, still a low price. Yahoo!'s cool Insider link at biz.yahoo.com shows no FRSH insiders have sold since last October, although a number have registered without taking action.
This quarter should have been their strongest, 3 cents versus 11 cents is quite disappointing. The company has a marketing problem as indicated by the decline in revenues in a time when the health food industry is doing well, the solution is to team up with or be acquired by another player with marketing moxie. I don't know if Saratoga is the one. PS... their Carrot Juice is the best of any brand I've tried.
Regards, John |
