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MICRO CAP HOT TOPICS
 

February 25, 2014

ForeverGreen on Pace to Have a Banner Year

It has been very cold across the U.S. this winter with Mother Nature providing a series of storms that has negatively impacted first quarter growth, particularly in the consumer arena.  Despite these headwinds, consumers are hot for ForeverGreen Worldwide’s (OTCQB – FVRG - $1.92 – Spec Buy) products.  Demonstrating remarkable demand and heavy interest in its products, ForeverGreen has beaten the odds by reporting tremendous year-over-year revenue growth for the month of January 2014. 

According to its recent press release, January revenue exceeded January 2013 revenue by more than 160%. This news comes on the heels of an earlier announcement proclaiming that revenue for 2013 met expectations for previously announced targets of $16 - $18 Million, and was likely at the top end of the range. Clearly, the company’s marketing and sales channels are generating big volume and interest, driven in large part by the PowerStrips line, which could grow faster as sales and operating efficiencies occur via back-office consolidation of the marketing entities. 

A key takeaway from this performance is the fact that while monthly sales growth rates have consistently risen year-over-year, the rate of growth appears to be markedly accelerating, which means that current 2014 revenue expectations could be too low. Moreover, it is rare to see the level of growth rates in any size entity.

We should note that ForeverGreen is not the only firm in the pace enjoying strong results. The 800-pound gorilla in the industry, Herbalife (NYSE – HLF - NR) recently reported results exceeding expectations and management raised guidance as well. The ForeverGreen performance combined with the Herbalife news should give investors comfort that the industry is in the midst of a major upswing in business. Considering that ForeverGreen is generating the industry’s greatest top-line growth rates and trades at a low relative P/E multiple, it is likely that the stock begins to arrive on many investors’ radar screens this quarter. 

For more information, refer to our previous sponsored FVRG Reports, Updates and Hot Topics by visiting www.GoldmanResearch.com

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Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm’s internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles reflect sponsored (paid) research but can also include non-sponsored micro cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research on stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. Since May 2013, Goldman Small Cap Research has been compensated $500 by a third party for this article.  

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