Replies to post #8727 on Inergetics Inc (fka NRTI)

[RobinIV]

You're absolutely right Capt. Their balance sheet looks very bad and is not likely to improve soon. And then there's the issue of dilution. We're well over 200M shares already and much more capital is gonna be needed until the business can sustain itself. My calculation is we'll be at 500M shares before this company turns break-even.
And still, they might be on to something. I think Bikini Ready is the most promising asset. But with the fundamentals as they are, it's gonna take years to see this reflect in SP. The company just don't have the power to push it in the market.
So those MJ products are indeed the thing to count on. Let's see what the scientific board can do to raise attention for the company. We can't have blind faith that this will work out, cause these people are involved in other commpanies too. But it might as well do the trick. Let one of those people come on national tv when NRTI MJ products are launched and we might see a huge rise in SP.
On a longer term this company will be for sale at some point. We have to count on Bikini Ready in this regard. Or the MJ products, if they get generally accepted by then.
The one thing I don't understand is the lack of focus. The acquisition of these yoga products for example is utterly ridiculous. I also think the stock options for the CEO is a waste. Every share counts at this stage and the company should not have given millions of them to Mr. James.
This last issue may have been dealt with though. I don't think it's a coincidence that news about the appointment of Mr Kras came at the same time as statements about financing. Investors just don't like hungry CEO's at this early stage and they are damned right about this.

[crookedneck]

Hey Capt, as with most companies during this stage, their financials are not going to be that great while they implement their growth strategy. Prior to Mr. James taking over two years ago, this company only had one product, the old Surgex, and were not going anywhere with a huge burn rate that was causing major dilution.

The fact of the matter is that all these new product lines haven't even been in the market for a year. It takes time to build a brand and it doesn't happen overnight. Right now the brands are continually growing and yes it will take additional funds to keep promoting them at this stage. That is the fact of life during this early stage, but Mr. James has kept dilution to a minimum and did use his financial prowess to seek out over $5 million in government grants from the state of New Jersey.

I am very excited about their entry into the medical MJ supplements and their unique approach that will give them a huge advantage in the market place. They will be the one and only source that will have the top industry experts supporting and endorsing their MJ supplements after being brought in to help create them. This Medical and Scientific Advisory Board is a brilliant approach for the huge growth in the medical MJ industry that is set to explode in the upcoming years as more and more states legalize it's use. This is a game changer that will come into play very soon.

As for the rest of their brands, their is also much to look forward here and here is what I see and expect for each brand:

Martha Stewart Essentials continues to grow and the reason Walgreen's took on the new MSE Gummies in addition to the sku's they already were stocking. I can assure you that if the brand wasn't producing sales, Walgreen's would not have added the new sku. Mr. James and his staff are working hard to expand distribution and that will continue well into the future. The Martha Stewart brands have a loyal following and that continues to bode well for the future of the MSE, but like I said before, it will take time to really build the brand and it was first introduced into the market less than a year ago. I spoke w/Mr. James about the brand a while ago and mentioned the concern regarding royalty agreement and the success of the brand as they continue to expand the brand. He said that Martha is very committed to making the brand a success, as it reflects directly on her. He said she will do what it takes to make that happen. I'm sure if the royalty agreement becomes a huge burden during this early stage, she would much rather work something out than let the brand fail. So, being that we are still in the early stages, there is still a lot more to happen to ensure the brand's future success.

The reformulated Surgex line and the private label deal for Muscle Maker Grills is having much more success than the old Surgex. The customer loyalty behind this brand is very big and as the business continues to grow, the sales base will too.

The Bikini Ready and Slim Trim brands are very new and will require much more promotional support to increase the awareness of the brands. Bikini Ready has grabbed some early attention and has a few top folks who are in personal fitness, praising the product already on various social media sites. The company is very excited about the future for Bikini Ready, like the Surgex brand, it is gaining a loyal following.

The Om Essentials and Itrinsix brands were great deals for the company and carry a very high margin that requires very little in way of investment expenses for the company. They are intended for a niche market that provides a good return. As the brands grow they will become a nice addition to contribute to the company's bottom line.

In summary, all these brands are very new, including Surgex after it was reformulated, and those of us who worked in this industry and understand what it takes to build a brand from the bottom up, know that this is a process that requires time, hard work, and a sizable amount of capital to make a brand successful. Mr. James and his leadership team are working hard to make this happen, while spending promotional monies wisely. Mr. James objective to turn this company around and make into a profitable business is off to a great start with all these brands and it is leaps and bounds above anything previous management did.

Inergetics is now being turned into a business of many good high quality brands and their entry into the medical MJ supplement business with their strategy, could very well be the golden goose that will provide immediate results to bolster their balance sheet to get them to a cash flow positive state. Patience could really pay off here and why I invested so heavily, because I believe in the management here and their strategy. Cheers!