Laguna Blends Inc. (OTC: LAGBF) is a relatively new
multi-level marketing (MLM) company that focuses on generating sales of
functional, hemp-based beverage products. LAGBF was formed in 2014 and has seen
tremendous growth since then. Stuart Gray, CEO of Laguna Blends, owns 18.5
percent of the outstanding shares. The company currently offers two hemp-based
functional beverages: Caffe and Pro369. Although the market is relatively young,
Laguna Blends chose the hemp market because it offers multiple health benefits
to its users. Hemp, a member of the cannabis family, is receiving focus because
of its potential use in health foods and functional foods. The plant is a great
source of protein, fatty acids, magnesium, zinc, and many other vital
nutrients. LAGBF operates using white label independent sellers to distribute
its products. It launched its sales on March 2016 with 135 affiliates, and its
network has grown to include more than 700 independent sellers today.
Fundamental Research Corp. (FRC) has recently initiated
coverage on LAGBF. FRC has been providing quality equity research coverage
since 2003. The firm’s research has covered more than 250 small and micro-cap
public companies, and it has helped some of the largest institutional investors
in the world choose the direction of commodity prices and top stock picks. The
report on LAGBF was released on May 5, 2016, and gives Laguna Blends a BUY
rating and a fair value estimate of $0.45 per share. The report on Laguna
Blends includes an overview of LAGBF as it stands today, information on MLM,
the hemp industry, the functional food and beverage industry, and Laguna’s
current position within these on a financial level. The report also provides
predictions for Laguna on what is to come, giving investors an educated insight
into what the company has to offer moving forward.
FRC’s study gives Laguna Blends a BUY rating, as the company
is expected to start reporting sales figures in the near future. Fundamental
Research Corp. also believes that value proposition and market absorption will
play a key role in attracting affiliates. The research firm believes LABGF’s
long-term success is directly linked to the company’s ability to attract new affiliates.
LABGF’s forecast for 2020 is based on the assumption it will have 24,000
affiliates, granted it keeps introducing new products. The expected return for
the vitamins and nutritional supplements industry is a healthy 10.2 percent.
According to FRC’s report, the cost of the company’s shares
will range from $0.30 to $1.06, depending on the number of affiliates Laguna
Blends has by 2020 (ranging from 12,000 to 100,000). Although the Risk Rating
Laguna Blends received is a four (meaning the company may be a start-up or in a
turn-around situation), it still received FRC’s highest Equity Rating (BUY) and
is expected to have a return of 12 percent or more.
For more information, visit www.lagunablends.com
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