Laguna Blends Inc. (LAGBF) Receives High Equity Rating as Fu Laguna Blends Inc. (LAGBF) Receives High Equity Rating as Fundamental Research Corp. Initiates Coverage
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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