Circle Group Holdings & Fibergel
As a random aside involving stocks, I've been following an odd little company... CRGQ.OB. They're an umbrella company for a bunch of smaller ones, but they have a very interesting product called fibergel which was developed by the US department of agriculture awhile back, and CRGQ won the rights to develop and sell it.
From what i read, "fibergel" product is a corn-based zero-calorie fat substitute which can be used to replace up to 50% of the fat/calories in a product without hurting its taste & texture, and apparently the taste tests have gone really well... It's run up from $0.32 to ~$9 over the year, and is now hanging out at ~$6.
Their revenues are up, they just signed a deal with Nestle, they cut their losses by 53% (I can't tell whether they are expected to have a profit this quarter or not) and it looks as though they're moving towards trading on Nasdaq instead of over the counter.
They also seem to be getting a lot of positive news coverage. Its nutritional information page is kinda funny, and I haven't heard of it killing rats or anything. O well, just seems kinda odd that you wouldn't be able to digest 50% of what you just ate. I hope it doesn't have the whole runs problem some of those potato chips had.
Posted by drunkenbatmanFebruary 24, 2004, at 08:34 AM
Comments (2)
Posted by: Drukenprophet at October 15, 2004 01:12 AM
Well,
Even a drunken prophet looking backwards can easily see that Scott and the other fools likening this company to the next Microsoft or something were simply mislead by the egomaniacal rantings of the company's pint sized CEO, Greg Halpern.
The Plant was completed in August but suffers from mechanical incompetence and still isn't currently working according to rumors on the net. Nestle has quit using their corn fiber in their products, a secret kept under wraps by Halpern until busted by a renegade watchdog site our-street.com.
Add to these buzzkills, the registration of 17 Million shares (half the outstanding shares) on behalf of shareholders large and small looking to liquidate and voila the stock is now around $1.40. Scott was right about one thing, that $5 price and even the $8.92 price once enjoyed by members of the Halpern cult didn't last long.
I think I'll pour another one and lift a glass to fools everywhere who invest on emotion and not reason for yours is not an easy world as you search endlessly for someone to blame, other than yourself for your losses.
The product you're refering to is called "Z-trim". It is 100% natural and NO it doesn't have the problems faced by other fat replacement products (Olestra).
Their not due to be profitable till the later half of 2004, because of the spending their doing to ramp up Z-trim sales. (Building a plant, National ad campaign, etc.)
Developed at the USDA, this product will deal directly with obesity issues that are plaguing many food companies.
Hope you buy in soon, because at around $5 (3/2/04), these prices won't last long! Look for another multi-national food company contract soon and a move off the Over-the-Counter exchange.