Reports
Fresh Harvest Products Inc. (OTCBB: FRHV)
Fresh Harvest Products, Inc. (FRHV) is a developer of brands and a marketer of organic and natural food and beverage products. Fresh Harvest sells its products to consumers through local, regional and national supermarkets, retailers, distributors, brokers, wholesalers and an online Web-store. Wings of Nature, LLC, formed in August 2009, is a wholly owned subsidiary of the Company. The Company’s products include fruits, vegetables, beverages, dairy, supplements, fibers (linen and clothing) and personal care products. The Company focuses on finding, developing and selling the organic and natural food and beverage products in the world. In March 2010, the Company completed its asset acquisition of AC LaRocco Pizza Co.
Analyst Opinion
No Consensus at This Time
Investment Highlights
FRHV engages in the development, marketing and sales of organic snack products and beverages within the United States. Products offered include health bars, coffee bars and salsa under the Wings of Nature name; and beverages under the TeAloe name. The Company distributes its products through branded retailers, supermarkets, distributors, wholesalers, brokers and an online store.
On April 12, the Company announced that sales of its Wings of Nature bars distributed to Walgreens has been “brisk,” and that the Company has received numerous reorders from the Deerfield, Ill.-based super chain of drug stores. The Wings of Nature bars are presently sold in approximately 200+ Walgreens in the greater Orlando, Florida area.
On March 29, 2010, the five (5) creditors of the Company and/or their assignees converted a portion of the principal amounts of certain notes for a total amount of $385,943 into 50,122,544 restricted common shares at an average per share price of $0.008.
On March 29, 2010, the Company issued 7,295,060 restricted common shares for financial consulting services to the Company at a per share price of $0.0096. The Company will account for this transaction as a consulting expense. As a result of these conversions and the share issuance, the Company has 200,000,000 outstanding shares of common stock, which is all of the common shares that the Company has authorized.
On March 3, the Company completed the acquisition of AC LaRocco Pizza Company, which distributes organic and natural foods to retailers Kroger, Albertsons and miscellaneous outlets. AC LaRocco Pizza is a 12-year-old company with $1.5 million in sales in the latest reported year.
On December 16, 2005, the Company bought Fresh Harvest Products Incorporated and began operations following the acquisition, which included the development of an organic food business in the United States.
The Company’s business plan is to develop proprietary products to distribute through appropriate outside U.S. retail outlet chains. Its products include organic snacks not containing refined sugar, cholesterol or trans fats, are low in sodium, and gluten free. These select products are produced in South America and Africa.
The Company’s mission is to offer good-tasting, healthful and affordable organic foods to the mass market. The products are now available in select supermarkets throughout eastern United States.
The Company’s primary focus is to expand its network of retail outlets and to raise capital to facilitate growth through established distribution channels and through acquisitions.
To date, revenues have not reached a level necessary to cover fixed expenses, with net losses and negative cash flows incurred during each quarter since the Company’s inception. Losses are expected to continue in the foreseeable future, according to a Company statement contained in latest Securities and Exchange Commission 10-Q filing of March 22, 2010.
As of the close of the first quarter ended January 2010, the Company reported current assets of $64,758, including $1,474 in cash, accounts receivable of $25,823 (net) and product and other inventory of $37,461.
Liquid assets are not sufficient to continue operation in the coming 12 months, according to a statement by management in the March 2010 10-Q. Therefore, the Company will be required to raise additional capital through a combination of additional stock offerings, long-term and/or short-term financing to continue product development, marketing, advertising, sales, administration and expansion of its products and distribution.
Technical Analysis
According to the RSI which is currently at 92.65% and above the critical level of 70, FRHV is overbought. While a stock that is overbought may continue to rally, investors should be especially careful.
FRHV’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands.
FRHV is trading above its 13 day moving average. This is considered to be the sign of a bullish trend.
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