Replies to post #466 on Nutroganics Inc. (NUTTQ)

[thesmalls]

it is definitely progress. they still have a lot of ill will to overcome and the stock price reflects that.

however, eventually the numbers will overcome that IF they are legitimate and sustainable.

currently the company has a market cap just over $7MM at a price of $0.25/share and 32.8MM outstanding shares. it continues to have a small float of only 9.2MM shares which is just over 25% of the OS. one major impetus is the AS being 200MM.

just looking at increasing revenues - they are giving guidance of $11MM in 2015. that would provide a price to sales at just 1.5X normally, a growing company would get closer to 5-10X. they arent growing exponentially and i dont expect them to over the next 12 months but they could justify a 2-4X if the revenues are sustainable.

profitability is a different story. if they can show sustainable profitability on these revenues and demonstrate through the filings that the M&A activity has been accretive - than they can justify a larger valuation on the current and forward looking revenues.

history aside - "this" company has done what it has said it was going to do in terms of increasing reporting, meeting revenue guidance, and continuing to expand via M&A. the price has not reflected the positive changes. i would guess that is due to the large overhang of shares by investors like myself that have been through the MLOG/MOBL debacles and do not trust Mecc or Wright. i have yet to find much on Sackler but he certainly didnt seem to make any fans with his Vitamin Water precursor (it is reasonable to argue he just "missed" becoming Vitamin Water with his product launch).

if the company/mgmt team truly has turned the corner - it would be prudent to issue an open letter to the shareholders to put the past to bed. equally important -they should communicate with MLOG shareholders on what is happening with that company. just because it is private does not mean they have carte blanche. especially the manner in which it was taken private. they have numerous questions to answer about the IT/IP lawsuits that have been successfully settled, how Mecc and Wright became majority owners during a dark period, and where the missing MOBL/MLOG shares went.