Seeking Alpha

Vineet Dutta's  Instablog

Vineet Dutta
Send Message
Vineet Dutta currently holds a Masters in economics and is currently works as a consultant in the risk management space. Before working as a consultant he has worked at one of the large money center banks, where he worked within the institutional counterparty risk organizations. Vineet’s has... More
  • Further Information On Pulse Beverage Opportunity 0 comments
    Jan 9, 2013 1:43 AM | about stocks: PLSB, BAX

    Here is some additional information on Pulse Beverage (OTCQB:PLSB) in combination with a recent story I published on Seeking Alpha. Even though Pulse Beverages trades over the counter, the company has a real and existing product that seems to be gaining traction with consumers.

    The story behind the development of the Pulse brand of beverages is an interesting one. They were originally developed by Baxter Healthcare Corporation, a major healthcare company, whose parent company, Baxter International (BAX), is a global healthcare company with 2010 sales of $12.8 billion, suggesting that the brand has the backing of a major player.

    Baxter Healthcare formulated the Pulse brand beverages to be scientifically effective by containing ingredients that are widely considered to be critical to adult health. Baxter Healthcare spent in excess of $10 million developing and initially marketing the Pulse brand. Furthermore, Pulse owns the right to use the following Side-Panel Statement: "Formulation developed under license from BAXTER HEALTHCARE CORPORATION". This right is in perpetuity without royalties.

    The market for Pulse's beverages is large. According to just-drinks.com, sales of vitamin enhanced beverages are growing at the rate of 10% per annum. Forecasters believe that this trend will continue. Currently, Japan is the largest consumer of such drinks, with 2009 sales of $8.9 billion. However, the growing popularity of the category in the United States has caused some experts to predict it will overtake Japan in 2014. Although the category is experiencing good growth, no clear-cut winner has emerged. Pulse goes beyond vitamin enhancement by using 100% natural ingredients, no artificial coloring, and nutritional additives.

    The story seems to be making its way across analysts of all types and was recently profiled by NBT Equities Research, which set a target of $5.50 on the stock. The firm said that due to the extremely rapid sales and distribution growth of Pulse's Cabana brand lemonades and their one million+ annual case sales rate achieved by late 2012, industry valuation metrics for the Cabana franchise alone indicates a near-term $150 million+ valuation or $3.50+ per share outstanding for PLSB stock.

    Stocks: PLSB, BAX
Back To Vineet Dutta's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.