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CCE deal with BRVO will include right of acquiring BRVO but the said rights can be exercised only after 31 Dec 2006. However the deal will inlcude definition of acquisition. Read the current schedule 13D......
http://www.sec.gov/Archives/edgar/data/804055/000080405505000143/bravo13d.htm
so that's it CCE has been accumulating shares!!!......
http://ragingbull.lycos.com/mboard/boards.cgi?board=BRVO&read=9318
DJ Coca-Cola Reports 52.23% Stake In Bravo Foods Intl >BRVO
07/25/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)
(MORE TO FOLLOW) Dow Jones Newswires
07-25-05 1643ET
Copyright (c) 2005 Dow Jones & Company, Inc.
*DJ Coca-Cola In Negotiation To Acquire Entire Bravo Stake
(MORE TO FOLLOW) Dow Jones Newswires
07-25-05 1648ET
Copyright (c) 2005 Dow Jones & Company, Inc.
it does..............could be MMs closing out the books but I doubt it as there are discrete trades!
http://www.marketwatch.com/tools/quotes/quotes.asp?symb=brvo&siteid=mktw&dist=mktwqn
after reading the RB posts, I get the feeling people there are blowing with the wind!! anyone watching after hr trades! accumulation going on big time! jmo
sbc, 3SOF stands for 3stocksonfire and FA for Fundamental Analysis!
Sbc, I am in it for the long term. hard to predict day to day fluctuations. for TA I usually follow 3SOF and FA I do it myself. The fundamentals look good, i.e good revenue potential, nominal capital expenditures, clean balance sheet, low float and finally profitability will come as growth progresses. i hope this helps.
McMike,....................................U bring up some good points like
"Why would CCE want to pay $5 for the other 150 million shares?........."
I have seen noonano's worksheet and it is quite accurate! Remember 65M options and warrants does not equal 69M shares. And god knows how many are actually left (especially after the recent SB2). So the 69M shares is from options, warrants and CDs. I think the 36 cents is weighted average price of the 69M shares.
Bottom line, nothing is clear until the deal is closed!
mcmike, I am not RB noonano.period...................
I suggest u read the 10K. There are 65 M options and warrants outstanding. The current SB2 has registered shares for only 18M warrants and options. I doubt if any of them got converted! I believe the oustanding warrants are 65M.If they do indeed get converted then at a average price of 12 cents that would equal $7M. That money would flow into BRVO's coffers. CCE is paying 36 cents, so 14 cents per warrant would go the 12 shareholders.
Yes, I bought FCCN. I liquidated my position in IFLB!! I am not sure about SWTS, mainly due to lack of info. Why was a $100m discontinued? Look out for NTRZ...that'slooking good bcz their new product which they just launched is natural product COX-2 inhibitor for treatment of ARthritis. Keep in mind VIOXX a COX-2 inhibitor solod by Merk has been withdrwan from the market due to evere side effect!! Apparently VIOXX ha beena multibillion dollar revenue producer for MRK!
Mr.B, I noticed those after hrs trades, a total of 500K shares. My gut feel says there's more news to come this week. Probably tomorrow!
here is a glimpse of the share details........
Share count summary
2004 Annual report shows the following
59,500,000 shares outstanding
65,089,658 Total warrants/options (what CCE has bought option for)
81,000,000 CCE
2,412,381 Employee and director, consultant Options
~207,700,000 Sub Total
That leaves us with just north of 93 million left of the authorized 300 million.
They do have 653,455 shares of Convertible preferred of various types. I have not yet found how many shares each each converts to. I will keep looking. In the past it was anywhere from 35-263 shares for each share of preferred, however the ratio changes as the price is different on each one. If you assume 100 shares each, you come up with another 65 million shares, bringing us to a total of about 272 million shares, give or take several million.
It could very well be that the preferred stock could convert into the balance of the authorized shares or a number further below that. Either way we are looking at north of 250 million shares issued and outstanding. Just figure that into your projections. I have, and I am bullish.
Equity holders at March 3, 2005
Common stock 59,917,797 shares 1,900 holders (approximate)
Series B preferred stock 107,440 shares 1 holder
Series F preferred stock 55,515 shares 3 holders
Series H preferred stock 165,500 shares 7 holders
Series I preferred stock 30,000 shares 2 holders
Series J preferred stock 200,000 shares 1 holder
Series K preferred stock 95,000 shares 1 holder
http://ragingbull.lycos.com/mboard/boards.cgi?board=BRVO&read=8766
It is pretty accurate. Interesting aspect...when CCE converts the 65M options/warrants that's an additional $7M into BRVO's coffers for a total of $20M!
McMike.......................u say...............
"..Yes the other 81 million shares will come from the treasury............."
from treasury??/ if they are carrying shares in treasury then they must be fully dislosed in the 10Q. right????
U know BRVO is holding up very nicely. think about this, the MMs could walk it down, the shorts could short it even more, it is on the Reg Sho list (shorting supply is endless).....however price is holding up. Some Good news must be around the corner.
PS. yesterdays HOD 1.03/1.06 was a signal. I believe the Ms knew news was coming and were saying hold the price at the $1.03 level. jmo. LOL
John,
"Coca-Cola Enterprises expects its total investment to be about $38 million. The options expire on Aug. 31, 2005."
moon.......ur post......................
A. Your inference is partially right. first of, the options to purchase the shares from the 12 shareholders were created for this deal. that's why it has an expiry date of EOM Aug. Secondly the underlying securities (of the option) has not been described. I am not sure how much end up with BRVO,12 shareholders or debt assumption by CCE. The deal will clarify that.
B. Money from the direct purchase of shares will flow into BRVO's coffers
C. I am not sure how this will work out. Normally speaking when a BRand is being acquired, KO get involved as KO develops,owns and licenses Brands. If KO does not get involved, the O/S should be 215 M shares with CCE having much more than 50%. Per 8K it says CCE will own a little more than 50% but I think they just put it out in a hurry. This will be a policy decision...does not make sense just to leverage the distribution network, attain market penetration as with market penetration comes Brand recognition and acceptance. If KO & CCE wants to play a major role in the milk industry this is the time to do it or a year later. Wait and see!
JMO
I am with U! I'll send the angel over! EOM
sons, my feeling is that they have been talking but were unable to fix a value to the deal and hence having to hire a an independent investment banker to opine their analysis of the deal. i am assuming they have also been working with a banker as the leak occured a month ago. So I am hoping too that we should hear something this week. And don't forget what Roy mentioned that he would like to wrap this up before 2Q CC which means by the end of this month as the CC PR will be in the 1st week fo Aug and also he is trying to bring up the new website by the end of this month. All in all he needs the close the deal and update the website by the end of this month. JMO
Sons, let me try one last time (I don't want to beat this horse to death!).
It was a premptive move by CCE to grab a majority of BRVO i.e grab 51% of the A/S. That is the bottom of the pond. It is also the fully diluted offering by CCE. Now, after negotiations, if CCE insists on 51% of A/S, BRVO may ask $10 PPS plus Master distribution rights of CCE. On the other hand it may end up with just $2 PPS, 51% of current O/S(with dilution protection) and a fantastic Master Distrubtion Rights of CCE. I hope u get the idea.
Anyways I am with u, for the long term. lets all have great weekend (the race begins this weekend!).
From their website.......................................
"Coca-Cola Enterprises employs approximately 74,000 people who operate 431 facilities, 54,000 vehicles, and 2.4 million vending machines, beverage dispensers, and coolers."
2.4 million vending machines, that's a lot of consumptiuon points!
"Some of these folks have shares and warrants that would have to come into the float were it not for CCE's offer. These financiers get a liquidity event without diluting their current interest."
Great point!
My assumption regarding 300M O/S is that it creates a less dynamic environment in relation to equity ownership. For example: if CCE took 50.5% of current oustanding, then they would need to qualify with a "dilution protection" clause. Also by stating 300M A/S probably CCE is gunning towards complete ownership, not now, probably sometime in the future (refer to marketsectorwatch on RB).
Bottomline:
PPS= Cash Value per share + NPV per share + premium
Actually, this is not as simple as it sounds (read marketsectorwatch on RB) but here is my 2 cents:
- The PPS depends on the Total Value of the Deal and the Total Outstanding number of shares at the end of the Deal.
- Given the above, then PPS = Total Deal Value/Total O/S at end of Deal
The big Q is what is the total deal value??? In my opinion it is
$38M Cash plus discounted value of Cash Flows for the next 5 yrs & beyond.
Cost of capital = long term interests rate, which is about 5%
Total O/S at end of deal will be 300M shares and CCE will own 50% plus of it. I say 300M shares as it is the total A/S and the only way CCE can be sure of getting majority ownership is to stipulate 50% plus of A/S.
To arrive at the yearly cash flow, one needs to estimate the market size and assume yearly penetration numbers. the market is $2B as per BRAVO's research and it has less than 1% of the market. So there is ample opportunity for growth!
I have not done the cash flow analysis yet. Let the investment bankers do it! I am holding on to my shares.
So at the end:
BRVO PPS : ????? but > $1, JMO
BRVO Cash: $13M plus
BRVO O/S : 300M shares
What is not given:
How much did CCE pay for acquisitions of options??
What are the underlying securities of the options?
What is value of the shares of the direct share purchases?
What is Master Distribution Rights?
interesting read.....
http://72.14.207.104/search?q=cache:vWFgDZ94yHkJ:www.namedevelopment.com/articles/article_16.asp+swe...
Naming In The News
Research Study: New Brand Names Not Making Their Mark
Is Delta's Song a Perfume? Is Intel Getting Into the Pasta Business?
By Kenneth Hein Brandweek, May 2004
After Intel shelled out $300 million to tout its new mobile technology brand, consumers still thought Centrino was a brand of vitamins or perhaps a maker of pasta.
Meanwhile, Delta's new low-budget airline Song, despite a $75 million launch, was confused for a brand of perfume or a musical product, according to a new study conducted by the Minneapolis based Strategic Name Development.
Choosing a brand name for a new product is one of the toughest challenges a marketer must face, said Bill Lozito, president of SND, an agency specializing in naming research. "Our experience has been that [the] target market often has a different take on the name than the marketer does. Often we find that if a marketer likes a name, it probably means the target won't."
SND surveyed 800 consumers online about 20 new brand names this past August. More often than not, new names such as Coca-Cola's Swerve, Bulgari's Omnia and Hershey's Swoops met with confusion as consumers were unclear as to what the product was or had trouble remembering the name at all.
Only 11% of consumers, unaided, recognized Centrino as a technology product compared to the 22% who thought it referred to vitamins. Conversely, 11% of respondents said Omnia was a technology item, while only 3% of respondents correctly identified it as a perfume.
Swoops, which are slices of chocolate shaped like potato chips, was thought to be a cleaning product by 18% of consumers, 14% thought it was a dippable chip and as any WNBA fan might have guessed, 12% of respondents thought it had something to do with athletics. (The association may have come from Sheryl Swoopes, a basketball star for the Houston Comets.) Respondents also thought it might tie-in with Nike's swoosh. While the product is just now hitting shelves, 7% of consumers claimed they were already familiar with the brand name.
"It's important to determine the latent association a brand name has among its target audience," said Lozito. "If it's positive, you can build on it. If it's negative, you need to get a sense of what hurdles you are up against. Don't fall in love with a brand name too quickly."
Coca-Cola's new dairy product Swerve was thought to be a car or driving product. Dr Pepper/Seven Up's water brand Deja Blue received an equal number of people (17%) who thought it was a drink or a pair of blue jeans.
Meanwhile Volkswagen's Touareg sports utility vehicle scored well with about a quarter of respondents who recognized the name after seeing it once. However they used 23 different spelling variations and 52% of consumers could not pronounce it. Nissan's Murano was recognized as a car/SUV by 18% of respondents. It too, proved to a tongue twister: 27% of consumers had trouble pronouncing it.
Cruncheros, a new line of Mexican snack taquitos and burritos from Ruiz foods, has also hit a few brand name barriers. Introduced in May, the product only has 6% awareness and its memorability rate was a low 18%. Just over a quarter of respondents (26%) thought it was chips, 21% thought it was breakfast cereal and 15% identified it as a crunchy food. Only 8% knew it as Mexican food.
Jennifer Lopez has a new perfume named Still to go along with her initial offering Glo. Too bad 12% of consumers think it's a bottled water brand only 2% of respondents had ever heard of it.
"There are 80,000 words in the dictionary and more than 280,000 U.S. trademark applications annually," said Lozito. "It makes it a challenge to come up with a meaningful brand name."
Case in point: the Mirra office chair from Herman Miller. In the survey, 18% of respondents thought it was a mirror or glass product
they have been taught to sell into a Gap Up and buy into a Gap Fill!!!! but ur right the long term value potential is huge. there will be more value seen as more news trickles out adding more clarity to the transaction. my suspicion is that the seller see CCE paying an average price of 25 cents per share (per filings by CCE) and have not factored in the master distribution rights! Just imagine Slammer turning where ever Coke bottles go on display.....schools, fast foods, malls, airports, colleges, cafetarias, C-Stores, Retailers, etc. Plus their PRs state that marketing in Schools & Colleges will have measurable impact this year 2005-2006! I bet CCE is already in with BRVO!!
Enjoy the ride folks!!!
yeah, but it is less dilution. the affiliates could convert at 10-15 cents a share! Plus it encourages Coke to consummate the deal!
YAHOOOO!! Arkie, Sons and the gang, isn't this just marvellous! I am thrilled. I am still holding on to my shares as now I am confiednet that the Math will crystallize...that means BRVO could hit north of $100M next year or so!!
i think it will go up without news. there is enuf already out!!! eom
r v invited to watch when u do the Cobalt crawl!!! LOL
solid close at $1.20. EOM
'awesome website' to be released after partner approval by end of month! Sons....sorry, i guess the PR ahs to wait until then! I can.
I hope she gets to sport a 'chocolate on chocolate' moustache!
Arkie, I made the same inference! But the Slammers Cobalt is refering to the Chevy Cobalt car and not to the drink. I doubt Slammers Cobalt is a drink, however, it is the Cobalt stock car with Slammers written all over it and driven by Erica Enders.
so are you going to be buying one i.e a Cobalt??
Arkie, it is only a matter of time b4 u get to buy the 'Slammers Cobalt'!!!
amazed! back in the green! on the move, back up! probably news round the corner! eom
arkie, thanks. read ur email too but could not reply(as I am not eligible). thx.eom
Arkie, u may be right! tomorrow may be the day!!! im going to give it this week. eom
Sons, FCCN at 2 cents a share looks attractive! Fully diluted number of shares is 35M. Worth an investment. My funds are tied. I was waiting for that big PR and leap too! Where is it? LOL.
another interesting article....
"...Companies like Gerber Products, Dean Foods, Coca-Cola and Cadbury Schweppes have made significant investments in aseptic processing machinery, ................"
http://www.mindfully.org/Plastic/Polyethylene/Aseptic-Food-Packaging14mar04.htm
interesting article (dated) on Jasper's mfg process......
http://www.foodengineeringmag.com/CDA/ArticleInformation/features/BNP__Features__Item/0,6330,94952,0...
Details of the process
The 3,600 gal. per hour processing system at Jasper Products heats low-acid beverages with super-heated water to 280¿F for at least two seconds. Product is rapidly cooled to 45¿F, homogenized and stored in aseptic silos for filling into sterile bottles. This process is milder than earlier aseptic systems and helps reduce the development of off-flavors. However, the treatment is potent enough to achieve commercial sterility.
Under sterile conditions using a HEPA air filtration system, a blow molder produces bottles with closed tops. Bottles are composed of three HDPE layers. The two exterior layers of ordinary HDPE enclose an interior black light-blocking HDPE layer. Bottles remain sealed until just before filling. This assists with cleanliness and structural integrity.
When it is time for filling, in a clean room that also uses HEPA air filters, bottle tops are cut off and bottles are sterilized with hydrogen peroxide vapor, a step required by FDA for aseptic processing. Upon filling, bottles are quickly hermetically sealed with sterilized foil seals.
“The system at Jasper Products fills about 200 bottles per minute,” says Kellar. “This is about twice the speed of the only other FDA-approved commercial aseptic plastic bottling system.”
If that is the case, then needs to close above $1.10 for a trend reversal and expect news next week!!