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
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