Redux Holdings announced today that they have acquired the remaining shares of Koloseum Nutritional Sciences ("KNS") that they didn't already own. (FYI: they owned 30% before today's announcement.) This has obviously been in the works for a while as the owners of KNS, Rick Robinette and Milos Sarcev, have been part of the Naturade team for many months now as Chief Operating Officer and Chief Science Officer, respectively.
So what does this transaction really mean? Is it important?
Well, here is what I think it does for the Company. First, it provides a new product line to market alongside the Naturade brand to a large network that is already in place. Naturade is in stores all across the United States (as well as some international locations) like grocery stores, natural food stores, Sam's Clubs, vitamin stores and many more. The Naturade brand typically targets the mass audience (moms and pops of the world).
The KNS line targets athletes.
Why does it matter? Well, is there a more efficient way to introduce leading edge, proprietary, nutritional formulas into your "everyday" product line than to take it from a sister product line that already produces supplements for world class athletes?
I have met with both Rick Robinette and Milos Sarcev and believe they are both savvy businessmen. Rick is a marketing guy with many industry credits to his name. He has been around the industry for about 20 years and is well connected with buyers (these are the people that work for the retailers and represent the contact point that you want to know in order to get your products the required shelf space.)
Milos Sarcev has been quoted by top fitness magazine editors (FLEX Magizine) as having one of the best minds of our age regarding health and nutrition and how it relates to developing the body. Milos was the 1989 Mr. Universe and has an incredible ability to train high end (mostly professional) athletes and maximize their performance. Now that KNS will be available on a wider distribution, athletes around the globe will be able to get the benefits of Milos’ most advanced nutritional formulas.
Now that Naturade has exited bankruptcy and appears to be on sound footing financially, I am looking forward to seeing how that Company grows its distribution network. Adding KNS to the mix should add another quality product to the offering and should be a step in the right direction.
DISCLOSURE: I am a large holder of Redux stock as I assisted Redux in becoming a public entity back in 2006. I continue to work with the Company on IR and Capital Markets Advisory issues and receive compensation for my services.
Monday, February 25, 2008
Wednesday, February 13, 2008
OTCBB: CYRX - In the news?
Now I don't typically put a lot of credence in what is posted on chat boards; however, a year or so ago I was made aware of a large manufacturing firm in the dry ice space that wanted a piece of the action over at CryoPort. At that time I heard that the manufacturing firm was willing to commit a million sq ft of floor space to ramp up the large scale production of the CryoPort Express One-Way Shipper.
Today on http://www.icecoldstocks.com/, the Iceman made a quick "whisper" comment during his "Dollar Man" podcast about possible news of a European manufacturer that was earmarking up to a million square feet to work with CryoPort. Now I don't know if it is the same manufacturing firm, I would bet that it is, and I don't know when the deal will become public, if there is one. But ... I do know that if a billion dollar manufacturing firm is dedicating a million square feet of their floorspace to support the CryoPort Express One-Way Shipper, they are not doing it for free and they expect to do A LOT of shippers. A million square feet is an enormous facility, which has a large carrying cost. If this "whisper" by the Iceman comes to fruition, I would expect things over at CryoPort to start picking up pace very rapidly.
Dollar Man Commentary: HERE (Audio: CYRX at the very end.)
Whisper Page: HERE (Text: CYRX is at the top.)
I really don't think that many investors have really put together a vision for their CYRX shares in regards to future valuation. Well, just take some very ballpark figures for example. There have been "rumors" on internet boards that FedEx ships over 300 million frozen packages on a global basis each year. If CryoPort were to ship 100 million shippers each year at an average of say, $80 per shipper (including shipping costs), they would do $8 billion (that's billion with a "B") in revenues. They would have to account for cost of manufacturing, shipping and corporate expenses. While I think they have better margins, let's assume that they can make 8% net profit based on the top end revenue line, they would make $640,000,000 in earnings. Currently, on a fully diluted and converted basis, they would have about 55-60 million shares outstanding.
You do the math.
DISCLOSURE: I worked with CryoPort from mid 2004 thru August 2007. I assisted them in becoming a public company and I am pretty comfortable with the story. On my private equity side, I own stock and warrants in CryoPort. I have not sold any stock to date and don't intend to sell any stock anywhere remotely close to the current price. I might look to sell a few shares over $10. For the record, I am not working with them in any capacity at this time.
Today on http://www.icecoldstocks.com/, the Iceman made a quick "whisper" comment during his "Dollar Man" podcast about possible news of a European manufacturer that was earmarking up to a million square feet to work with CryoPort. Now I don't know if it is the same manufacturing firm, I would bet that it is, and I don't know when the deal will become public, if there is one. But ... I do know that if a billion dollar manufacturing firm is dedicating a million square feet of their floorspace to support the CryoPort Express One-Way Shipper, they are not doing it for free and they expect to do A LOT of shippers. A million square feet is an enormous facility, which has a large carrying cost. If this "whisper" by the Iceman comes to fruition, I would expect things over at CryoPort to start picking up pace very rapidly.
Dollar Man Commentary: HERE (Audio: CYRX at the very end.)
Whisper Page: HERE (Text: CYRX is at the top.)
I really don't think that many investors have really put together a vision for their CYRX shares in regards to future valuation. Well, just take some very ballpark figures for example. There have been "rumors" on internet boards that FedEx ships over 300 million frozen packages on a global basis each year. If CryoPort were to ship 100 million shippers each year at an average of say, $80 per shipper (including shipping costs), they would do $8 billion (that's billion with a "B") in revenues. They would have to account for cost of manufacturing, shipping and corporate expenses. While I think they have better margins, let's assume that they can make 8% net profit based on the top end revenue line, they would make $640,000,000 in earnings. Currently, on a fully diluted and converted basis, they would have about 55-60 million shares outstanding.
You do the math.
DISCLOSURE: I worked with CryoPort from mid 2004 thru August 2007. I assisted them in becoming a public company and I am pretty comfortable with the story. On my private equity side, I own stock and warrants in CryoPort. I have not sold any stock to date and don't intend to sell any stock anywhere remotely close to the current price. I might look to sell a few shares over $10. For the record, I am not working with them in any capacity at this time.
Friday, February 1, 2008
(OTC: RDXH) Redux Holdings, Inc.
Redux Holdings, Inc. (Quote: RDXH) is a stock that is not really on anyone's radar at the present time. In a nutshell, Redux goes out and acquires distressed companies and/or cherry picks assets from distressed companies that private equity firms, hedge funds, mutual funds, venture capitalists, etc. would like to get rid of. The management team at Redux is an experienced group of industry veterans comprised of members of Enterprise Solutions Group (http://www.eginc.net) and others. The team is experienced in M&A plays of financially or operationally distressed companies and has handled companies ranging from millions to billions.
Just a heads up: An interesting article about Redux Holdings is currently on the front page of the current Los Angeles Business Journal titled: Company Spinning Turnaround Process.
In 2005, Adam Michelin, Redux's CEO, asked me if I would be interested in assisting him in building a publicly traded M&A firm that would focus on turnaround scenarios in leveraged transactions. I told him that I might, it would just depend on the deal. After doing a little more due diligence on Adam, I realized that he was a well established, well connected and well respected player in the distressed company turnaround industry. I agreed to move forward on the project and Redux Holdings was the result of these joint efforts.
For those who are wondering what the name Redux means, according to a Latin translation (freely available on the internet): Redux - ducis adj.: act. [bringing back , restoring]; pass. [brought back, returned].
My definition: “Rebirth”: ie: rebirth of an asset; taking an asset that was mismanaged or which failed for a specific reason and isolating and repairing the deficiency while returning the asset to its full potential value.
The root name is a proper description of what the company does with selected “orphaned assets” and distressed corporations. Redux identifies the valuable assets that are part of a poorly run operation, strips them out and isolates them in a new entity, brings in the necessary management and capital to fix any outstanding issues and returns the asset to profitability.
The primary objective for Redux Holdings is to identify potentially beneficial assets, acquire them at deeply discounted prices, and quickly restore them to profitable operations. The firm focuses on primary areas in which it intends to maintain a long term presence, called Permanent Core Groups. Currently, the core groups consist of:
1.) Consumer Services
2.) Nutrition and Supplements
3.) Technology
I won't go into great detail on my blog since I have an Investor Fact Sheet available on my website that can be downloaded free of charge. The fact sheet gives a much more in-depth overview of the pieces that are currently in the Redux portfolio. I am presently working on updating this for the Company, but this somewhat dated version still provides a pretty accurate picture and gives a good overall review.
I am currently discussing Redux with a number of accredited investors on my private equity side and I believe that Redux is on the right track. Redux bought the majority ownership of Naturade (Quote: NRDCQ) in August 2006. (Not sure why they have not dropped the “Q”, but getting that resolved is in process.) Anyway, Naturade had been cash flow negative for 5 years prior to Redux taking control. In November 2007, Naturade came out of bankruptcy and was recently put back on the OTCBB (See January 18, 2008: 8k filing). Although I am not sure of the method that will be used to implement a filing, I expect that Redux will become OTCBB in the near future as well.
DISCLOSURE: I helped this company to become public, I own stock in the company and I am a compensated consultant to the company for IR and Capital Markets Advisory.
Additional note: The float on this company is very small, I own a bunch of shares and there is not much stock available for trading. When it does start trading, I expect it will be tough to find stock to buy, but that is okay with me, since I already own my shares. :)
Just a heads up: An interesting article about Redux Holdings is currently on the front page of the current Los Angeles Business Journal titled: Company Spinning Turnaround Process.
In 2005, Adam Michelin, Redux's CEO, asked me if I would be interested in assisting him in building a publicly traded M&A firm that would focus on turnaround scenarios in leveraged transactions. I told him that I might, it would just depend on the deal. After doing a little more due diligence on Adam, I realized that he was a well established, well connected and well respected player in the distressed company turnaround industry. I agreed to move forward on the project and Redux Holdings was the result of these joint efforts.
For those who are wondering what the name Redux means, according to a Latin translation (freely available on the internet): Redux - ducis adj.: act. [bringing back , restoring]; pass. [brought back, returned].
My definition: “Rebirth”: ie: rebirth of an asset; taking an asset that was mismanaged or which failed for a specific reason and isolating and repairing the deficiency while returning the asset to its full potential value.
The root name is a proper description of what the company does with selected “orphaned assets” and distressed corporations. Redux identifies the valuable assets that are part of a poorly run operation, strips them out and isolates them in a new entity, brings in the necessary management and capital to fix any outstanding issues and returns the asset to profitability.
The primary objective for Redux Holdings is to identify potentially beneficial assets, acquire them at deeply discounted prices, and quickly restore them to profitable operations. The firm focuses on primary areas in which it intends to maintain a long term presence, called Permanent Core Groups. Currently, the core groups consist of:
1.) Consumer Services
2.) Nutrition and Supplements
3.) Technology
I won't go into great detail on my blog since I have an Investor Fact Sheet available on my website that can be downloaded free of charge. The fact sheet gives a much more in-depth overview of the pieces that are currently in the Redux portfolio. I am presently working on updating this for the Company, but this somewhat dated version still provides a pretty accurate picture and gives a good overall review.
I am currently discussing Redux with a number of accredited investors on my private equity side and I believe that Redux is on the right track. Redux bought the majority ownership of Naturade (Quote: NRDCQ) in August 2006. (Not sure why they have not dropped the “Q”, but getting that resolved is in process.) Anyway, Naturade had been cash flow negative for 5 years prior to Redux taking control. In November 2007, Naturade came out of bankruptcy and was recently put back on the OTCBB (See January 18, 2008: 8k filing). Although I am not sure of the method that will be used to implement a filing, I expect that Redux will become OTCBB in the near future as well.
DISCLOSURE: I helped this company to become public, I own stock in the company and I am a compensated consultant to the company for IR and Capital Markets Advisory.
Additional note: The float on this company is very small, I own a bunch of shares and there is not much stock available for trading. When it does start trading, I expect it will be tough to find stock to buy, but that is okay with me, since I already own my shares. :)
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