Rocky Mountain Investment Club

[bliz82]

FRHV: Pros and Cons

Pros:
They are getting their product in at least a few stores that we know of.
If the products are good, we could have a winner long term.
Products are fairly simple and should be easy to manufacture and distribute.
If we believe the PR's, we're getting into Walgreens asap along with a discount store chain in Ohio (67 stores I believe) and a few others.

Cons:
SS (125M O/S is a lot for a small startup)
Rapidly expanding SS (47M in March to 125M on 1/25/10)
Gagged TA (again)
No IR
Slow response from management
No easy way for customers that have online order problems/questions.
Ordering webpages have errors and incomplete pages
Share price is already forward looking as they have limited revs right now and no profit.
Website has in accuracies and is sorely outdated (for example: their Organic Trade Association membership expired in 2008 yet they still say on their website that they are active members).
Very few have tried the products (are they any good?)

Bottom Line:
.02 is overvalued right now but it's a reasonable gamble due to recent distribution developments. Downside is probably limited while long term (1-2 years) potential is very high if the products are good.
The FRHV board is pretty useless for active DD. I wish we had a few more active DD'ers to track down some important facts.
I would not put a lot of money in this but a small stake (1 to 5% of your penny money) would be fine.

GL!