Wednesday, February 20, 2008

SectorWatch.biz Issues MarketStats on SWTS, FIZZ, JSDA, VPS and LBIX

Today's MarketStats on beverage companies include: Sweet Success Enterprises (OTC BB: SWTS.OB), National Beverage Corp. (NASDAQ: FIZZ), Jones Soda Co. (Nasdaq: JSDA), Vermont Pure Holdings, Ltd. (Amex: VPS) and Leading Brands, Inc. (NasdaqCM: LBIX)

Sweet Success Enterprises (OTC BB: SWTS.OB) Sweet Success Enterprises, Inc. engages in the production, distribution, and marketing of ready-to-drink functional health beverages in the United States. The company produces, markets and distributes a line of all-natural nutritional and functional beverages through approximately 500 retail and chain stores. Sweet Success is based in San Antonio, Texas.

SWTS grew earnings in the face of decreased revenues over the past twelve months. This is a trend that is not sustainable if profits are to continue to grow at this rate. However, this performance was on-par with the typical company in the Beverages (Nonalcoholic) industry.

With the conclusion of the recent clinical trial results of SWTS's revolutionary Diabetic-Friendly Beverage, GlucaSafe, the company could be poised to reverse a recent price movement that has pushed them to a 52 week low.

To view a complete profile on Sweet Success Enterprises, visit our financial courier at StockUpTicks.com

National Beverage Corp. (NASDAQ: FIZZ) National Beverage Corp. develops, manufactures, markets and distributes a portfolio of beverage products throughout the United States. The Company develops and sells flavored beverage products, including a selection of flavored soft drinks, juices, sparkling waters and energy drinks. Its flagship brands, Shasta and Faygo, each have over 50 flavor varieties. National Beverage also offers a line of flavored beverage products for health-conscious consumers, including Everfresh, Home Juice, and Mr. Pure 100% juice and juice-based products, and LaCroix, Mt. Shasta, Crystal Bay and ClearFruit flavored and spring water products. In addition, the Company produces energy drinks and powdered beverage products, including Rip It, Rip It Chic, FREEK and PowerBlast.

Because FIZZ is in the Beverages (Nonalcoholic) industry and has positive earnings, the PE and Price to Book ratios are the most appropriate valuation measures. The Price to Sales ratio is less instructive than the PE since the company has positive earnings. Therefore FIZZ seems valued at a discount with a PE value of 15.042, one of the lowest in the Beverages (Nonalcoholic) industry.

FIZZ uses little or no debt in its capital structure and may have less financial risk than the industry aggregate.

Jones Soda Co. (Nasdaq: JSDA) Jones Soda Co. engages in the development, production, marketing, and distribution of beverages primarily in the United States and Canada. The company distributes its products through a network of independent distributors and national retail accounts, as well as through licensing and distribution arrangements. Jones Soda was founded in 1986 and is headquartered in Seattle, Washington.

Based on its gross, operating, and net margins, JSDA converts a percentage of its revenues to profits that is inline with other companies in the Beverages (Nonalcoholic) industry. However, the company, like most others in the industry, is losing money on an operating basis.

JSDA saw earnings decline in spite of positive revenue growth during the past twelve months. Additionally, the average company in the Beverages (Nonalcoholic) industry was able to improve its earnings result over this same period.

Vermont Pure Holdings, Ltd. (Amex: VPS) Vermont Pure Holdings, Ltd. is engaged in the production, marketing and distribution of bottled water, and the distribution of coffee, ancillary products and other office refreshment products. The company markets its products primarily under the trade names of Vermont Pure Natural Spring Water and Crystal Rock. Vermont Pure Holdings was founded in 1989 and is headquartered in Watertown, Connecticut.

VPS is consistent, if not average, compared to other companies in the Beverages (Nonalcoholic) industry. With a Return on Assets, Revenues Per Employee, and Return on Equity of 2.56%, $197,669.70, and 6.36% respectively, the company is by all measures doing a fair job relative to its industry peers.

VPS has a debt to total capital ratio of 50.80% which is in-line with the Beverages (Nonalcoholic) industry's norm. With an Interest Coverage ratio of 2.57 and a Quick ratio of 1.09 the company should be able to comfortably repay its debt.

Leading Brands, Inc. (NasdaqCM: LBIX) Leading Brands, Inc. is engaged in beverage bottling, distribution, sales, merchandising, brand development, brand licensing and brand management of beverage and food products across North America. The company also produces its own line of beverages under the TrueBlue, LiteBlue, Infinite Health Water, TREK, Nitro and Country Harvest Natural Juices brand names. It serves wholesale and retail grocery suppliers, and food distributors. The company was founded in 1986 and is headquartered in Vancouver, Canada.

Because the earnings of LBIX are not available, the Price to Sales and Price to Book ratios are the most appropriate valuation measures. Therefore LBIX seems inexpensive with a Price to Sales ratio of 0.8883, below the Beverages (Nonalcoholic) industry median PS ratio of 1.19, which is supported by a Price to Book of 1.4839 that is also below the industry median of 2.36.

Based on its gross, operating, and net margin, the cost structure at LBIX eats up a higher percentage of its revenues than most companies in the Beverages (Nonalcoholic) industry. To make matters worse, the company is losing money on an operating basis.

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Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. SectorWatch.biz and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report.

This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. MP is not an investment advisor, analyst or licensed broker dealer and this report is not investment advice. MP has been granted three hundred and twenty five thousand restricted shares of SWTS common stock by Sweet Success Enterprises for preparation and distribution of this report and other services over a six month period. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.

1 comment:

Unknown said...

LBIX seems to be in transition reflecting the new focus on its own brands. At the moment comparisons are not like with like. The stock has enormous potential, especially as its own brand sales are growing at 50% per annum. Once this is reflected in positive EPS comparison, we should see lift off in the share price. Meanwhile I have been building a holding gradually below$2.00.