Bond-Laboratories, Inc. (BNLB)

 

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Monday, March 30, 2009 – Pre-Market Open

Green Baron New Stock Pick 

Bond-Laboratories, Inc.

 (OTCBB: BNLB - .22 per share)

www.Bond-Labs.com

www.FusionEnergyBoost.com      

Common Shares Outstanding / 33,098,261

Preferred Stock Series A / 9,659,477

Approximate Float / 3.2 million

Current Market Cap / $9.4 million

 Year High / $3.25 per share

Year Low / $.12 per share

Average Price / $.2327 (50-day) $.5049 (200-day)

Average Volume / 17,500 (50-day) 14,800 (200-day)

 

Sales of Fusion™ Premium Energy and Nutritional Products Skyrocket; Recent Addition of Two Former Coca-Cola Marketing Executives Expected to Help Generate Major Growth through Invaluable Experience and Existing Distribution Relationships

 

Major PR Released This Morning: Bond Labs Report Record 2008 Revenues of $2.53 Million; Company Provides 2009 Revenue Guidance of $9 million (over a 250% projected increase)

 

At a time when most companies are exhibiting sales declines and struggling to generate enthusiasm among its sales force, The Green Baron Report has been introduced to a Company that is quickly becoming a success story.  This overlooked stock has dropped like many others during the selloff over the past six to nine months, but now appears ready to absolutely fly based on solid fundamental and technical factors.

 

The Green Baron Report has gone back to basics in evaluating companies it decides to include in our reports.  We are going back to what made us so popular and successful when we started the newsletter back in 2002 when most of our picks rallied triple digit percentages within months after we initiated coverage.  Our research and analysis of companies prior to suggesting them for accumulation is now more intense than ever, and we resolve to bring our members the best “Stock Picks” and “Stock Alerts” in the world.

 

So far this year, we believe our added selectively, research and timing has paid off.  In early February, we told members of the breakout in Santa Fe Gold (BB: SFEG) at .75 per share and it rallied to $1.25 in days.  SFEG just hit another high for the move at $1.30 per share and closed Friday at $1.26.  On February 23 we told members to watch for Axial Vector (AXVC) to finally explode to the upside within 30 days.  AXVC was trading at about .06 per share that day and since has rallied as much as 716% to hit .49 per share.  Finally, on March 18 we made VIASPACE (BB: VSPC) a new “Stock Alert” at .009 per share and since it has rallied as much as 55% on a big increase in volume.

 

Due to the huge general market decline, The Green Baron Report restricted its number of fully profiled Green Baron “Stock Picks” and “Stock Alerts”.  In fact, we have not released a new fully profiled “Stock Pick” for our home page this year … until TODAY!

 

The Green Baron Report is proud to announce that Bond Laboratories, Inc. (OTCBB: BNLB) is officially our 73rd fully profiled stock pick and will be added to our storied list of previously profiled stocks on our home page.  Results compiled from the most recent trade possible prior to dissemination of this report to the subsequent high will be monitored at www.thegreenbaron.com.  Although we have very aggressive short and long term expectations for this stock, we still suggest our members try to accumulate shares as close to today’s profile price as possible. 

 

TRADER’S NOTES:  BNLB is a fully reporting Bulletin Board listed stock with average representation by market makers.  We expect many more market makers to be attracted to the stock as volume and price increase.  BNLB drifted down from over $1.00 per share last year on light volume, but is now expected to go on a tear once more investors become aware of the Company’s existing and future plans.  There is little overhead resistance in BNLB and we expect a short term rally to easily take the stock to.60 to .70 per share.  Spreads can range from .01 per share to .04 per share due to the small float and reluctance of its loyal shareholders to let go of stock at these low prices.

 

Bond Laboratories has nearly 50 different products available in convenience stores, specialty, retail, food, drug and mass marketing outlets in the United State and Canada.  It has formed a veteran team of seasoned individuals with a solid track record of converting ideas into highly profitable, consumption driven products.  Bond’s goal is to be on the leading edge of innovation, and is now pursuing its unique vision for the next generation of healthy foods and beverages.

 

Fusion Premium Energy, Inc, a wholly owned subsidiary, now actively markets and sells a popular 2 oz. product called Fusion 6+ Hour Energy Boost.  In November 2007, it was voted the best tasting energy shot in the category.  Fusion™ Energy shots can be found in over 6000 retailer doors including Circle K and AM/PM.  The subsidiary is rolling out a whole line of Fusion™ energy related products including gum, supplements, cookies and breath spray.

 

In October of 2008, Bond Laboratories purchased the assets of NDS Nutritional Products, Inc., a wholesaler and distributor of nutritional products focusing on weight loss, sports nutrition and general health.  Products sold under NDS Nutritional Products, Inc are the Release Weight Loss line sold exclusively to GNC, the Professional Muscular Development line sold exclusively to GNC, the Dr. Health line sold exclusively to GNC, and the Infinite Labs product line sold through distributors and large retailers in The United States, Canada, and Europe.

 

The Green Baron Report has identified six primary reasons why our members should own Bond Laboratories (BB: BNLB) common stock now:

 

1.    Former Coca-Cola Marketing Executives Join Company – John Wilson, President of the Fusion Premium Energy brand, brings over seventeen years of experience from Coca-Cola and Coca-Cola Enterprises.  Scott Slocum, Executive Vice President of Fusion Premium Energy, joined with over 24 years experience in the beverage industry including numerous leadership roles within Coca-Cola Enterprises.  The Green Baron Report’s Editor in Chief was able to sit down and meet with both John and Scott.  Their unbridled enthusiasm and motivation is obvious.  CEO Scott Landow believes that a company must be quick to take advantage of the opportunity to attract talent like this in recessionary times that have forced even the biggest players in the beverage business to make adjustments.

2.    Revenue Growth – A 66-page 10K was filed this past Friday, March 27 that includes detailed financial statements and descriptions.  We are more impressed that the Company went on to say in its press release announced today that it projects revenues of $9 million for the year 2009.  After we met with management, it seemed clear that they consider projections a very serious matter.  Even though $9 million in revenue would be over a 250% growth rate, we honestly believe this number is on the low side of what is expected.

3.     Fusion™ Product Line – We urge members to go visit the website at www.FusionEnergyBoost.com.  Under leadership of John Wilson and Scott Slocum, Fusion is expected to dramatically increase sales of its Fusion 6+ Hour Energy Boost, and aggressively launch Fusion™ Breath Spray, Boosters, Gum, and Supplements. 

4.    NDS Acquisition – Bond Laboratories acquired NDS Nutritional Products, a notable seller to GNC, for 4 times EBITDA, (half in cash and half in stock at $.90/share.  The cash portion was paid 50% up front and 50% over 18 months.  To date, free cash flow from NDS has covered the balance of the purchase.  The acquisition has opened up considerable sales channels for current and future product introductions, and provided stable, growing revenues.

5.    Low stock price – Despite several fantastic announcements over the past three to six months, BNLB stock has struggled to return anywhere close to its old price of over $1 per share.  Today’s forecast of $9 million in sales this year would mean at the current stock price that BNLB is trading at only one times sales for the next year.  We believe sales will continue to grow at a substantial percentage beyond this year.  The announcement today should drive BNLB stock to at least double on its own.

6.    X factor – The talent at Bond Laboratories represents some very smart and experienced thinkers.  We are confident that Bond Laboratories will “be on the leading edge of innovation”.  This is a Company that is going places, and we are encouraged by the entrepreneurial spirit within management.  Watch for the X factor that could surprise us all.

The Green Baron Report firmly believes Bond Laboratories is going to continue to blow away its projected numbers going forward and will be a force to reckon with in its industry.  It is rare to find successful marketing executives that bring the kind of experience that Bond Labs has found with John Wilson and Steve Slocum.  We believe that BNLB stock is vastly undervalued based on the talent of its team, the sales growth of existing products, and the potential of products coming to market soon or still in development.

About Bond Laboratories, Inc.

Bond Laboratories, Inc. is a premier marketer of healthy food and beverage products. Bond has brought together a seasoned team of highly successful sales and marketing executives with considerable experience in the launch and development of many well known branded products. Bond Laboratories, Inc. is currently focused on developing proprietary products, as well as delivery platforms, that address the needs and concerns of today's consumer. For more information on Fusion™ Energy Products, interested persons can go to http://www.fusionenergyboost.com.

Initial Target Market: Energy

Product: Fusion 6+ Hour Energy Boost

According to the Beverage Marketing Corporation (2007), the market for energy drinks in 2006 exceeded $2.5 billion, which represented a 516% gain from 2000.  (The category grew an additional 9% in 2008.)  New product introductions have numbered in the hundreds, accounted for a significant percentage of the sales growth.  The principal marketing channels in 2006 were convenience/gasoline stores (35.7%), mass merchandisers (16.5%), and supermarkets (11.3%), with most of the growth occurring in mass merchandiser and supermarket channels.

Energy "Shots" have been particularly successful since their launch in 2004, rapidly growing to 11.7% of total energy drink spending.  Benefits include convenient portability (small size), less carbohydrates and sugar than full-sized drinks, added vitamins and minerals, easy consumption of the small volume of liquid (two ounces), and no need for refrigeration.  Retailers enjoy the small footprint of the marketing cubes, high margins, and rapid inventory turns.  The small footprint allows retailers to merchandise the shots in high-impulse locations.

The significance of being one of the first brands to market cannot be overlooked. Energy Drinks began their popularity with products like Red Bull in the late 1980’s.  Although there are over 600 energy drinks on the market today, it is estimated that Red Bull sold over 5 Billion units in 2007.  The concentrated 2 ounce energy shot drink began approximately 3 years ago with about 30 brands in the category today; the first, ‘5 Hour Energy’ is expected to have had sales of well in excess of $100 million for 2007.  Bond launched its Fusion 6+ Hour Energy Boost at the National Association of Convenience Stores in November of 2007 where it was voted Best Taste.

Fusion 6+ Hour Energy Boost Product Features:

  • 3X  the kick of the typical canned energy drink in a small 2oz. bottle!
  • Metabolizes faster than canned energy drink
  • Zero carbs, Zero grams of sugar, only 8 calories per serving
  • No crash- as associated with all sugar based energy drinks
  • The strongest / longest lasting energy shot available on the market
  • Voted the #1 tasting energy shot in the category at the 2007 NACS Show!
  • Available in Berry and Limon

Retailers have found that the energy shot product category is #1 in both dollar sales at the front-end checkout and in dollar sales per square inch of display space.  The Fusion 6+Hour Energy Boost was first shipped to customers in January of 2008 and was No.7 in the category by the end of its first year on the market.  (Source: A.C. Nielsen, Nov 2008).  A 6-piece counter display for Fusion® is 12.75 square inches, and a 12-piece counter display is 25.9 square inches).  Fusion® also has an attractive gross profit for the retailer.  With a regular wholesale price of $1.40 per unit and a suggested retail price of $2.99, the retailer's gross profit is 49.8%.

NDS Nutritional Products, Inc.

In October 1, 2008 we purchased the entire interest of NDS Nutritional Products, Inc. (“NDS” or “NDS Nutritional Products, Inc”)   NDS Nutritional Products, Inc. was formed in 2001.  NDS Nutritional Products, Inc is a wholesaler and distributor of nutritional products focusing on Weight Loss, Sports Nutrition and General Health. Falling under NDS Nutritional Products, Inc are the Release Weight Loss line sold exclusively to GNC, the Professional Muscular Development line sold exclusively to GNC, the Dr. Health line sold exclusively to GNC, and the Infinite Labs product line sold through Distributors and large retailers in the United States, Canada, and Europe.

NDS Nutritional Products has a strong history and brings tremendous resources to our organization. Established in 1998, NDS focuses its dynamic capabilities on providing cutting-edge quality products in the weight loss, sports nutrition and general health categories. Its emphasis is placed on the education of the consumer in regards to the unique attributes of its diverse product line. Its strength is in the health and nutrition channel, which will nicely complement our current, rapidly growing retail distribution network in convenience stores and mass. 

NDS Nutritional Products, Inc.  is the first of what management believes will be numerous acquisitions that will help us accomplish that goal. NDS is strategically involved with the development of the next generation of preventative health products, Fortified Foods and Beverages. Management believes NDS is an appropriate fit for our company as we .anticipate, but cannot guarantee, will immediately add significant revenue to our top line and be accretive to our earnings next year. We have already begun to integrate NDS distribution in the health and the nutrition channel alongside our rapidly growing retail distribution network in convenience stores (C-stores). Not only will the NDS acquisition allow us to add 40 additional SKUs in the fast growing sports nutrition market for our International broker network, we have gained a centralized infrastructure in Omaha, NE.

Recent Key Announcements

March 30, 2009 – Bond Laboratories Reports Record 2008 Revenues of $2,530,000; Company Provides Guidance of 2009 Revenues to Exceed $9,000,000 USD - OMAHA, NE--(BUSINESS WIRE) -- Bond Laboratories, Inc. (OTCBB: BNLB) today announced for the full year twelve months ended December 31, 2008 revenues exceeded $2,530,000 vs. $11,530 for the same period during 2007. 

The Company further announced revenue guidance for 2009 to exceed $9,000,000.00 USD.

Scott Landow, Bond Labs CEO stated, “2008 was a banner year for us. We achieved several of our internal goals and set the table for continued rapid growth in sales and profitability in 2009. I am thankful to our loyal shareholders, investors, and our management team for their tireless dedication to the Company’s success. We are building strong brand momentum across all of our product lines. Our Company has no long term debt and we expect to achieve profitability in 2009.

RESULTS OF 2008 OPERATIONS

Our revenues for year ended December 31, 2008 increased to $2,530,424 from $11,530 during fiscal 2007, respectively:

1st qtr sales were $226,717

2nd qtr sales were $404,887

3rd qtr sales were $501,290

4th qtr sales were $1,397,530

 

Additional details can be found in the 2008 10K filed with the SEC. We will soon be announcing a date and time for our annual shareholders meeting, intended to be held during the 2nd Quarter, at which time we are looking forward to bringing on additional members to the Board of Directors. 

In 2008, we made major investments in building our products, brands and distribution. The majority of these were either non-cash services paid in restricted stock or one-time investments that will not be recurring expenses going forward.  The results of our efforts are expected to be reflected in our increased revenues and improving profit margins from quarter to quarter in current year 2009.” 

“Net of our non-recurring expenses, our loss for 2008 would be $2,219,028 vs. $3,961,602 for the year ended December 31, 2007”, concluded Landow. 

March 24, 2009 – Bond Laboratories, Inc. Announces Record Revenue Growth in Q4 2008 – Revenues Surge 275% Over Q3 2008 - OMAHA, Neb. - Bond Laboratories, Inc. (OTCBB: BNLB) announced fourth-quarter 2008 revenue exceeded $1,397,500; up 275 percent from third-quarter 2008 revenue of $501,290.

"This increase in quarter over quarter revenue was a direct result of much higher growth in sales and marketing of the company's core products, combined with the addition of NDS Nutritional Products, Inc. products," stated Scott Landow, CEO of Bond Laboratories, Inc.

"The Company is also experiencing dynamic revenue growth through the integration of its new seasoned NDS/Infinite Labs Fusion sales and management teams. Fusion Premium Energy products are quickly building broad distribution through the convenience store channel and food, drug and mass merchants. Our NDS/Infinite Labs division continues to grow rapidly through its strong ties to the specialty retail channel with its exclusive line of sports nutrition products sold through GNC stores. During fourth-quarter 2008, the Company also began to see growth in the military, sporting goods distribution and convenience store channels."

Landow continued: "During the fourth quarter we were able to complete a great deal of product development and marketing work to set the table for a very strong 2009. We expect to launch several potential blockbuster 'Category Killer' products shortly as a result of the 4th Q R & D. Many of our expenses in 2008 will not be ongoing. In addition we were able to issue restricted shares for services in several instances, versus using dollars. Of the $2,916,369 loss we expect to report for the quarter, approximately $2,500,000 was comprised of non-cash/non-recurring expenses, leaving an ongoing loss

February 13, 2009 – Bond Laboratories, Inc. Announces the Appointment of Two Former Coca-Cola Marketing Executives as President and Executive Vice President of Fusion Premium Energy - OMAHA, Neb. - Bond Laboratories, Inc. is pleased to announce the key additions of John S. Wilson and Scott Slocum to its management team. Mr. Wilson will assume the title of President of the Fusion Premium Energy brand. Mr. Slocum as Executive Vice President of Fusion Premium Energy, Bond's wholly owned subsidiary.

John Wilson joins Fusion Premium Energy, Inc. with over seventeen years of invaluable experience at both Coca-Cola and Coca-Cola Enterprises. Most recently, Mr. Wilson was responsible for negotiating exclusive bottling agreements with national customers on behalf of all seventy-three of the Coca-Cola Bottlers in the United States. Scott Slocum joins Fusion with over 24 years experience in the beverage industry including numerous leadership roles within Coca-Cola Enterprises. Mr. Slocum's strength is his vast experience in the areas of channel distribution, customer management, as well as operations logistics.

Commenting on the appointments, Chairman and CEO, Scott Landow stated, "On behalf of the Bond Laboratories team, which includes our employees as well as our valued customers, I want to express my excitement and unabashed enthusiasm as I look towards Bond's future. I am firmly convinced that John Wilson and Scott Slocum will lead Fusion Premium Energy and Bond Laboratories "to the next level and beyond". The relationships that Mr. Wilson and Mr. Slocum have cultivated over the past two decades will prove to be instrumental in the further development of our company. Today, we have close to 50 different products available in convenience stores, specialty retail, food, drug and mass marketing outlets in the United States and Canada; We are well positioned to take advantage of the talents and energy that John and Scott will add to the team. These are exciting times for Bond evidenced by our ability to attract this level of talent."

February 5, 2009 – Fusion Premium Energy Enters into Joint Distribution Agreement with Vespa Beverages within the Direct Store Delivery Channel - SOLANA BEACH, Calif. - Bond Laboratories, Inc. announced that its wholly owned subsidiary, Fusion Premium Energy, has entered into a Joint Distribution Agreement with Vespa Beverages, manufacturer and distributor of Killer Buzz Energy Drinks, as a Direct Store Delivery partner.

"In a major step towards the development of a Direct Store Delivery program (DSD), Fusion Premium Energy Products are very excited to announce our partnership with Vespa Beverages," said Scott Landow, CEO of Bond.

"The largest DSD programs in our business are dominated by independent bottlers and distributors. It has been a challenge for us to establish the right DSD relationships because the majority of their business is placing bottles and cans in retail coolers. The Fusion 2 ounce Boost by itself (which goes on the front counter) was not typically a fit in their business model. By partnering with Vespa and their Killer Buzz Energy Drinks, we now give these distributors strategic brands in both the 2 oz. shot for the counter and the 8.3 and 16 oz. Killer Buzz Energy Drink cans for the coolers. This is a 'win-win' for both companies. Since our products complement each other and don't compete, we can assist Vespa gaining access into markets where we are already strong and vice versa. By sharing sales resources in such a productive manner, each company essentially reduces their marketing costs by 50%," concluded Landow.

January 26, 2009 – Bond Laboratories, Inc. Adds Jeff Jonke to the Management Team of its Fusion Premium Energy Division - SOLANA BEACH, Calif. - Bond Laboratories, Inc. is pleased to announce that Jeff Jonke has joined its wholly owned subsidiary, Fusion Premium Energy, Inc., as Vice President of Distributor Development.

"Mr. Jonke brings to Fusion Premium Energy many years of experience and expertise in the Direct Store Delivery channel," said Scott Landow, CEO of Bond. "Prior to joining us, Jeff was Sr. V.P. of Sales and Marketing for Boo Koo Beverage, where he managed their dramatic revenue growth from $200K to $18 million during its first two years."

"Since inception, Bond Laboratories and Fusion Premium Energy have been committed to staying lean and keeping overhead to a minimum. The current economic climate now affords us the opportunity to acquire experienced talent such as Jeff Jonke, which would not have been previously available. He has spent his entire career in the beverage business, primarily in senior management positions at companies that include Rockstar Energy, Hansen Beverage (owner of Monster Energy), Jones Soda and Arizona Tea. We feel very fortunate to welcome Jeff to the Fusion Premium Energy family, knowing what a key leadership role he can play for us in the all-important Direct Store Delivery channel."

Green Baron Conclusion

Bond Laboratories is making the right moves at the right time.  They have acquired key personnel that have the contacts and experience to get product placed in high volume stores.  Fusion™ Energy products are now being managed by some of the most talented guys in the business.  This talent most likely would not have been available during better economic times, and CEO Scott Landow is actively seeking out the best and brightest people to take key roles for the future.

Let’s go one step further.  Suppose you are one of these guys working for Coca-Cola, Rockstar Energy or Hansen Beverage and you are considering a switch to a sort of upstart company with a list of “potential” blockbuster products.  What is going to push you over the edge?  Perhaps there are some things these guys have seen that we have not.

There is any number of factors that could make BNLB rally from current prices.  In a stronger stock market, BNLB would probably have never traded below .50 per share.  This has happened to numerous stocks over the past six months.  The drop in BNLB to this price, even as the Company has made historic progress and positive announcements, is a bonus to our members.  We suggest members grab whatever you can get below .45 per share as we just don’t see much if any downside from there.  This is one to hold so get what you can while it is still on sale!  With continued business momentum, we would not be surprised to come back and suggest increasing your position when the stock crosses $.75/share. 

For Further Information Contact:

Redwood Consultants, LLC

Jens Dalsgaard (415)884-0348

investorinfo@redwoodconsultants.com

 
 

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