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ChromaDex Corporation Message Board

  • joejoepepitone joejoepepitone Feb 26, 2013 11:15 PM Flag

    What the JV deal really says.

    The sale of "$6M" Blu Science is a positive in that the financial retail monkey will soon be off the back of CDXC. That seems to be the only significant benefit of the recent deal. I am quite surprised that a more suitable partner could not be found. Seems that the JV partner is basically paying them to get entry into Walgreens and other accounts. The 'partner' is a big question mark. Better something than nothing, but a real disappointment. The proof in the pudding with have to be an ingredient hit over the next quarter. If CDXC can't get the ingredient sales, then the prospects for growth are very limited in comparison. It is getting close to the moment of truth for the future of the company. I think the jury will be in by mid-year 2013. I remain hopeful that they get a deal....but I hate to think that this sale of BluScience is predictive of management's capabilities.

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    • A reasonable, thoughtful analysis. I do have two issues however. First, being in Walgreens with a product that is not selling, or even one that is selling well, will not get your other products on to their shelves. They are too cluey for this, and the competition for shelf space is intense. Furthermore, I have never seen Bluescience products in any Walgreens I have visited. No one in these shops has ever heard of them.

      Second, in regard to the ingredient sales. Chromadex does not make the pterostilbene it sells to some manufacturers. It buys it from a company in India. There are better, cheaper sources for this material.

      Finally, the partner here may not actually be better than nothing. Have you done any due diligence at all on them? Better have a look first.

 
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