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Microcap & Penny Stocks : CRGI... (Creative Gourmet)... The DD. -- Ignore unavailable to you. Want to Upgrade?

To: outofplumb who wrote (275)	7/21/1999 11:43:00 AM
From: Tom Allinder	Read Replies (3) \| Respond to of 411

For those of you still holding.... I have been in contact with several people in the company and close to the company for the last several days. We have not seen much interest in the stock for a variety of reasons, some of which I will detail below. 1. A problem has come up in the last month or so with a breakdown in communications between Continental Capital and CRGI. CC came into the stock several months ago at .10. The price moved to a high of .40ish in that time and has since settled at/near the current level. I have been in contact with Sam Rubin, the CFO of CRGI and CC. Brenden Hopkins, the CC rep met with Sam and Mr. Wilcox, the President yesterday to work out where they were going to go with regard to promotion of CRGI co and stock. As it turned out, I talked with Sam (last night) and Brenden this morning. The meeting went well, CC has been paid and has agreed to resume efforts to promote the co and the stock. It is important to realize that CC is a strong PR firm and they contributed strongly to the movement from single digits to the current level. Resumption of effort on the part of CC to promote the company can only have a positive effect. Additionally, Brenden (who I know well) toured the new facility yesterday and had a preliminary look at the books and was favorably impressed. This was a very important step... Getting CC back into the game. 2. In my conversation with Sam Rubin, we covered a variety of subjects including: a. The new facility... in the old facility, they were producing less than 100 desserts per 90 minutes. In the new facility, they will be able to produce 700 per 90 minutes. Important: given the sales of old equipment and unused equipment, CRGI will be able to liquidate the $160K debt incurred during acquisition of the new facility and leave some left over. In other words... the new facility was virtually free. b. New equipment that will speed up the process of getting the desserts on the road and to the "end users"... new refrigeration equipment will enable CRGI to buy much larger quantities of "raw materials" and significantly cut production costs. c. Along with the facility came a revenue stream of roughly $20M per year. Management of the former "Homebaked" mismanaged and misused the revenues that they produced, therefor they failed. In fact, there are some very juicy details regarding the management of the former "Homebaked" that I will leave out of this post. The important thing is: CRGI is taking over all the former contracts. Again revenue stream of $20M per year will bode well for CRGI. d. CRGI book value estimated to be near .50. e. Auditors have the books now and a preliminary report (NR) will go out within the next two days. CRGI will be fully reporting within next 6 weeks. f. Hard Rock Cafe deal: Yes, they have a deal with HRC. They will be purchasing brownies from CRGI. Currently, HRC is reviewing menus and plan on purchasing desserts from CRGI. This will be a longer term thing (3-4 months) before HRC is using exclusively CRGI desserts. g. The web site is well into development. 3-6 weeks it will be up. It will be tailored more for volume users at first, then as production increases through more acquisitions, the private individual will be able to order desserts through the web site. 3. Richard Chancis has been with the company for close to a year now. He is in process of getting brokers interested in the stock. He is working very hard and I think his efforts will pay off. MY OPINION: Getting CC back onboard is a big deal. I have a great deal of confidence that CRGI is headed in the right direction. The bottom line is: As long as the company continues to perform and the PR firms are doing their job, the co and the stock will get noticed. Their is not a lot of stock left out there and when we get some positive volume, we will see a nice gain. Tom