Editor's note: Yesterday, "Doubling Stocks" editor Michael Cohen gave his subscribers a heads-up regarding what he called a "famous stock pick" that deserved attention, and promised that he'd provide full details this morning. Here's what he divulged when today's markets opened [03/24/2008]. Per usual, his ever-candid and irreverent advice holds appeal to savvy and contrarian traders and investors, and more than fulfills the overnight anticipation...By Michael Cohen
Editor, "Doubling Stocks"
Company: Rudy Nutrition [RUNU.PK]
Yahoo! Finance: http://finance.yahoo.com/q?s=RUNU.PK
Company Website: http://www.rudynutrition.com/index.html
This week's pick is RUNU, a company whose CEO is the famous Rudy Ruettiger. I'm sure Rudy needs no introduction, but let me explain what this amazing human being has already accomplished...
He created the movie "Rudy" that was released by TriStar in 1994. It is the story of his life, and his pursuit to follow and achieve his dreams.
He is the author of several books that are sold in Barnes & Noble.
Rudy's talent as a motivational speaker is also in high demand. He has a client list a mile long, some of his clients include: Xerox, Allstate, Sprint, Monster.com, and several others.
No one can deny Rudy has star quality... Just watch his promotional video, available here...
And Rudy's next challenge is to take over the energy-drinks market. His company, Rudy Nutrition, has spent the last three years ramping up to release their New Age beverage.
Rudy's beverage will be released in four flavours: Blue Fuel, Fruit Punch Blast, Citrus Slam, and Orange Lift.
Have a look for yourself...
The company is expecting sales of $10 million within the next three years. And this is off to a great start, with RUNU just securing sales and distribution in all 50 states.
Just watch as Rudy talks about his plans...
The Rudy Nutrition beverages history is quite colorful. Let me explain...
The beverage was initially formulated back in 2006. Rudy test-marketed the product in select markets; Boston, Buffalo, St. Louis, Hartford and Colorado Springs, among other cities.
In several blind taste tests, Rudy outperformed Gatorade® and POWERade® by 2:1.
All this, despite early management of this time period -- e.g., employing a disjointed marketing strategy to sell nationally through large retailers; and using the services of a large, but misguided, advertising agency.
The result was a low volume of sales, lack of market penetration, large financial losses and low product identity -- despite having a well recognized celebrity as the product namesake.
In January 2007, a new group of investors saw the potential of Rudy. They quickly formed "Rudy Partners, Ltd." and purchased Rudy Beverage, Inc. from Global Beverage Solutions, Inc.
They immediately kicked out the inferior management, and changed the bottles from high-density "milk jug" plastic with expensive sleeved labels to more traditional, clear PET plastic with standardized labels.
In addition, they dropped the name "Revolution" and changed it to the instantly recognizable "Rudy 45." A smart move.
Finally, their expertly executed regime involved immediately stopping touting Rudy as an alternative to Gatorade, which has no vitamins and considerably more sugar. The new formulation is comparable to a Vitamin Water®, but much better because it contains electrolytes, carbohydrates and a low-calorie natural sweetener.
It's safe to say Rudy now has a great product.
Scientific marketing tests have shown it to outsell industry leaders, such as POWERade and Gatorade. These companies have million-dollar marketing budgets. Yet, simply because this product is backed by an incredible celebrity... it outsold them!
And, in my opinion...
A Great Product + Backed by a Star = An Incredible Investment Opportunity
The Rudy beverage is already greatly anticipated by the distributors lucky enough to get rights to sell Rudy.
And, in my experience, a crude product can be dragged to stardom by a celebrity... But just imagine what a great, revolutionary product can do when backed with a celebrity like Rudy.
Now... The real reasons I chose RUNU this week:
The company has worked extremely hard to get where they are, and I feel now is the exact, right time to grab onto their shirttails.
Just take a look...
* RUNU's new "dream team" management has already gotten sales and distribution channels ready. This is THE major problem facing most similar start-ups; i.e., distribution being the main problem. Just think, why can Coca-Cola launch new brands every few months so easily?
...Because they hitch on the distribution and sales channels of classic Coca-Cola. Rudy has already hitched a ride with VISTAR Corporation, the leading specialty food distributor in the U.S.
* RUNU has also partnered with Canteen Franchise Group, the only national vending machine operating business. Canteen operates 150 branches with18,500 client sites. Canteen has agreed to get Rudy's beverage in most vending machines.
In fact, Rudy Nutrition will, with the help of these partners, have the beverage in vending machines, retail stores, schools, prisons and health clubs all over the entire U.S.
* As mentioned, in scientific test marketing, Rudy has already outdone POWERade and Gatorade by 2:1 -- showing a glimpse of the power of being backed by an renowned celebrity.
* RUNU's management has, yet again, gone one step further, with plans to release a Rudy snack bar, which will most likely be yet another homerun for RUNU.
... In addition, I believe that just the simple fact the Rudy drink is affiliated with Rudy makes this company worth a lot...
Coca-Cola and similar companies spend millions of dollars securing celebrity endorsements. And that is for one simple fact: No matter what the product, a celebrity endorsement will sell it by the bucketload.
Not only that, Rudy Ruettiger could be considered a "perfect fit" for the energy-drinks market... He was a sports hero, with a major film documenting his career.
And this has already been proven, where the Rudy 45 drink was positioned right next to Gatorade and Powerade, and outsold it 2:1.
It's plain to see RUNU has already done most of the hard graft required to successfully launch a new beverage. And, in fact, their stock price has already started to rise -- reflecting that investors are realizing this is a great product, backed by great management, with Ruettiger priming the pump for a launch of unrivaled magnitude.
The stock has risen to $0.81 on certain investors making this realization. Just imagine what will happen when people see Rudy in their local retailers, schools, prisons and health clubs all over the entire U.S.
I believe that, over the next week, as investors continue to see everything I just told you, the stock will continue to drift up towards $1.40. After that, I believe it could jump again when Rudy finally starts distributing and reaping the rewards of their clever partnerships with VISTAR and Canteen.
This expert management team have worked for three years to get the company to where it is now. I believe smart investors can reap the rewards of all their hard work. In fact...
The OTC:BB has already been home to a similar company... And if you followed the success story, you'll know bulletin board company Vitamin Water was swiftly purchased by Coca-Cola... and made early investors rich...
A final note: In 1974, Daniel "Rudy" Ruettiger was 5'6" tall, and 165 pounds -- far shorter and lighter than is expected of a football player. Ruettiger more than overcame this setback... And I believe his drink is about to be the little guy rising to the top all over again.
Best Regards,
Michael Cohen
P.S: There is one other big reason I feel this stock is about to jump in price. RUNU has 600 television spots arranged... Not only will this sell more of the product... Importantly, for us investors, it will alert the common investors to everything I just told you.
Because of this, I believe RUNU could make gains of 130%+ over the next week or so, and so it is very time-sensitive. If you're reading this more than 24 hours after it was distributed, please don't even bother.
Full disclosure: Kari Larson does not own shares of any of the companies/stocks mentioned in this article.
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