Pulse Beverage Corp. (fka PLSB)

[metrodavef]

One thing is for sure is that Pulse is more fun to talk about and has my attention. I go back to a few key items:

- Management has a track record of growing beverage businesses and they proved they are capable once again growing lemonade sales to 20,000 stores in a short period of time

- Non alcoholic beverage industry is moving toward healthier beverages

- This winter really sucked and I for one didn't buy any lemonade over the last couple of months so seasonality isn't a surprise

- Several of us questioned why the functional beverages would be sold in his and her flavors (they got too cute on that one as unisex marketing is much broader

- The functional beverages are the flag ship product of Pulse and if the re-formulated flavors are as good as their other products then wow

- The coconut water appears at first blush to be lightning in a bottle oops I mean can - no matter what the top line revenue $'s are, one thing cannot be disputed: They sold 327k cases of lemonade that generated $3.3 mil of gross revenue in 2013 and in less than 30 days they sold 120k cases of coconut water which equates to 37% of total lemonade case volume in 2013 BUT since a case of coconut water includes 24 cans it really equates to 73% of the lemonade case volume in 2013 on an apples to apples comparison.

- distributors and retailers are beverage experts. Lemonade is nothing new but a lot of experts agreed to distribute and sell their lemonade straight away.

- Remember the dilutive capital raise? There are a bunch of warrants to purchase stock at about .62 per share. Those warrants are included in the fully dilutive basis of 51 mil shares. If holder execute on those warrants, the company would generate as much as $12.5 mil of additional cash.... imagine that. As they execute and the share price rises who wouldn't exercise.


2014 is already interesting