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Reader Question
.
What does this poker player, Matt Giannetti,
and these well know pro athletes have in common?
Tiger Woods
David Ortiz
The following current or ex pro football players are also involved:
Arian Foster - Texans
Ronde Barber - Giants
Torrey Smith - Ravens
Paul Soliai - Dolphins
Nolan Carrol - Dolphins
Jimmy Smith - Jaguars
Derek Sherrod - Packers
Tyron Smith - Cowboys
Mike Neal - Packers
The answer is they are all sponsors of FUSE. So what’s Fuse you might ask? It’s a drink. The sponsors and the company are touting this stuff as the next Gatorade. The description of the new product from the company's 10-Q is interesting:
Fuse Science has successfully developed sublingual, buccal, and transdermal delivery systems for bioactive agents that can now for the first time, effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can bypass the GI track and enter the blood stream directly.
The Fuse Science proprietary technology definitively penetrates the mucosa and epithelium to achieve complete and enhanced absorption. It is our firm belief that at this moment we can deliver a wide range of product formulations via these delivery systems such as aspirin, OTC pain, allergy, and cough & cold medications, as well as energy source, electrolytes and many pharmaceutical applications.
This reads like something from Merck rather than an energy drink company. So who is behind this? Some big shots like Coke or Pepsi? Possibly Triad? No, actually the company behind this is, well, not much at all.
Something called Double Eagle Holdings (currently listed in the Pinks - symbol DROP) is the proud owner of FUSE. Some highlights on DROP:
-Last seen, the stock was trading at 43 cents. Up from next to nothing not long ago.
-There are 90 odd million shares outstanding, and therefore a market cap of a lousy $39mm.
-The company has no earnings at all.
-The 10-Q (from June) lists the company’s current liabilities at $507,000, and its current assets of only $300,000. Basically, the company is balls to the wall.
-Because the company has no money, the sponsors are likely getting a ride on the upside with stock. I have no idea what option deals were offered to the big name sponsors.
Let me be clear on a few things. (1) I don’t now, nor have I ever in the past owned any DROP. And (2) I most certainly am not touting this. But I am curious; this is all a bit unusual.
My problem with this is that I can’t believe that a guy like Tiger would put FUSE (exclusively) on his bag unless he actually had tried the drink (and he liked it). If it’s later shown that all these guys are falsely endorsing this product it would them look very bad indeed. These pros are not dumb. They have tons of money and good lawyers. So I’m confused.
I’m not above a "punt" now and then. I was looking at DROP in that vein. After all, the energy drink business will top $9B in sales this year. Sports drinks as a category will exceed $20B. I would appreciate anyone's thoughts on this one.
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That's scary Lizzy. I have a five and eight year nephew and neice and they have never spent a night in the hospital. They have had the flu but "plenty of fluids aka flat ginger ale" or pedialyte usually works.
Is that why the cost of medical care in the US is so expensive?
If dehydrated, they take you to hospital and put you on an IV feed rather than giving you a glass of some re-hydrating fluid, like water !?
French, don't know if this is the case with Arkadaba's niece & nephew, but if someone has had very bad diarrhea or vomiting then replacing the lost fluid with just water can throw off the body's electrolyte balance. If the person still has stomach / intestinal problems and can't keep anything in themselves long enough for it to be absorbed, then an IV might be the best way to go.
I think it has to be a fairly severe case of diarrhea / vomiting to deplete the body that badly. However, it's very possible Arkadaba lives somewhere that's had recurrent instances of the stomach flu. I caught some bug a couple years ago that gave me a fever and had me spending 30 minutes with the toilet every 90 minutes for about 6 hours. Had I been a parent watching one of my kids go through that, yeah, I'd have taken them to the hospital after about the 2nd or 3rd hour of that.
...My neice and nephew (4&7) usually spend at least one night a year in the emergency room getting a couple bags of IV fluids bc they have caught some intestinal bug.
"At least" one night a year in hospital getting a couple of bags of IV fluids?!? From 'some' intestinal bug?
You know aabout the whole washing your hands after going to the toilet before cooking them their dinner thing, right?
Lizzy is in Canada, where soap costs money but healthcare is "free"
Reminds me of the launch of Vitamin Water. 50 Cent (Curtis Jackson) got 10% of the company for his endorsement, which turned into $100M once Coke bought it.
Looks like these endorsers are looking for lightning to strike twice.
http://www.singersroom.com/news/881/Hip-Hop-News-50-Cent-Making-Millions...
"penetrates the mucosa and epithelium to achieve complete and enhanced absorption."
Tiger is proof the stuff must be legit.
The process sounds enough like a drug to require FDA approval. What's the background of the developers?
A few years ago there was a product called 'Airborne', it marketed as a cold preventative, on the label it said it was developed by a second grade school teacher. To me though, it was what I remembered calling a fizzy when I was a kid...
A fizzy...is that like when we used to put a thumb on a Coke bottle, shake it hard, and then squirt it up our nose?
Defuse the Fuse, refuse to infuse dopamid products in your blood stream, thus becoming the experimental humanoids one day of the Doomsday machine run by Dr Strangeloves; corporate welfare state now gearing up to become corporate tyranny and manipulatiive dictatorship. This is a self destruct spiral for so called 'civilization'; remember the thesis that it was lead in the pipes that killed Rome, or too much lust for ephemeral gold dust, dug up by sweat and blood of the plebians. Slave society and the Optimates live in a ghetto of their own, destined to be impaled by the Barbarians at the gate, as their OWN people will not protect them, having been humiliated beyond redemption.
God, you need a shot of Scotch!
bartender, I'd like a Scuse, neat, with a dopamine twist
chardonnay on ice and very bubbly.
Scotch gets absorbed by the mucus membranes and bypasses the upper GI track too...hmmmm
scotch...is it in you?
We are all single Malt-husians now!
Da pun ah da week! Yeah..
As for false endorsements, an example; athletes do not drink gatorade, so if you think they need to drink the stuff (DROP) to endorse it, then think again.
On the surface ... the story reminds me of Webio and Spongetech formerly (SPNG) -- Both advertised heavily in major league ballparks.
I came here to post exactly this; SPNG was a huge scam but MLB owners had no problem taking their ad dollars. The name however was hilarious- sponge up whatever dumb money remained post-crisis. It worked, until it didn't.
"90 odd million sharesoustanding" ....how many shares do the athletes own?
If the price gets pumped to 1.00, they will be dumping (but only after their agents dump at .90)
You seem to have a strong understanding of chemistry from what I have read Bruce. Perhaps you are aware that many expensive sport nutrional supplements are mainly destroyed in the intestinal tract. If this stuff can carry nutes past the GI wall without destroying the majority of them, and it's safe it could make money. However I would expect this kind of thing to be sold or licenced as a technology to all those capitolized specialty supplements companys as can be found at places like GNC. I cannot help but wonder that if it was not done in that fashion to get the company going that whatever it can deliver past the GI must not be too horribly ground breaking, or they would not need to start up this way.
According to Edward Bernays On Propaganda, this marketing alone might be enough to drive them out of the pink sheets.
Very interesting find! Nicely done!
Boiler Room Bruce
Do not confuse Fuse ( fuse science ) with FUZE.
Fuze is energy drinks and other drink stuff.
Fuse ( Fuse science ) is energy gel, Direct application to the skin!
Bypassing the GI tract! IE absorbed through the skin. Directly to the bloodstream!
The technology actually has already been around in other products mainly medical. Now they are trying to make it mainstream over the counter type of stuff, drinks, vitamins, cafeeine etc....
Would I invest in something like this personally... yes I would.. After I buy my gold and silver for the day. would I even use a product like this.. yes I would after a few more years of testing and letting others figure out its not great or its good..
Bypassing the Gi tract to go directly into bloodstream, WTF is it an IV!
Didn't they already make this? Head-On, apply directly to the forehead. Head-On, apply directly to the forehead...
http://www.youtube.com/watch?v=Is3icfcbmbs
I always thought it was Hard-On, apply directly to the penis. Like a Viagra gel.
The first thing that will happen when it hits the shelves of 7Eleven is people trying to use it to get other substances directly into their blood stream: alchohol, THC, etc.
I wonder if the contents to be delivered have to be pre-mixed in, or if you can just stir it up in a cup ...
EDIT: Also, not sure if I would put much stock in the "research" done by someone who doesn't even take the time to read the product discription off the product's site and assumes its a drink. WTF, Bruce?
In other words, Tiger can actually put this on his bag.
if it were a drink, I bet who ever makes Fuze the drink would be sueing the pants off of Fuse the drink.
Not to be con"fused" (pun intended) with explosives, munitions and pyrotechnic initiator devices.
:)
Never heard of them - nice dig, BK. There's been a pretty long history of transdermals in the medical field (inocculations of armed forces going into foreign land in particular). See:
http://www.mylantech.com/transdermal_technology/products.aspx
I can see it in sports, for sure. Convenient as heck.
Brando?
Seriously, its either a major scam or a major break through--not enough info to tell right now. But probably worth buying a few shares of it, as there is not much downside.
BRAWNDO - Its got electrolytes!
Oh yes electrolyes!
http://www.fitday.com/fitness-articles/nutrition/healthy-eating/how-to-m...
If you read that BS about bypassing the GI tract and getting straight into the blood-you know that it is a load of crap --ha ha pun intended....
This IS the reason that this product will sell. You put verbage like this in front of the numnutz that are American consumers and they will BUY it up! LITERALLY. Bruce, I believe you have something here--I am going to do some more research. Thanks and if nothing more--this is funny:)
i agree, these claims are total garbage bs. nothing to get excited about. just another hustle job here. sure it may make money, but like so much else in this world now, no substance at all.
A functional file system in a user-space program.
Aye. That's what I think too. I was at first puzzled that pro atheletes were Linux users.
It's cross compilable, and multiplatform too.
Odd indeed.. Who is claiming these guys are actually lined up as sponsors?
seems like a scam. if it's true, it will be weaponized.
http://expose2.wordpress.com
Go to web page in the piece. Or go tiger woods' page. He has a link to videos etc about the endorsement.This is a "real" endorsement. I think Ortiz is also legitimate. I was not able to confirm the others. But if they have Tiger, it doesn't surprise me they have the other ones too.
There are many links on this at Google. try: Tiger Wood, Fuse
Bruce,
First of all, thanks for all of the work that you do around here. You make us stronger every day.
Ronde Barber has never played for the Gianst and still plays for the Tampa Bay Buccaneers.
His twin brother, Tiki used to play for the Giants.
Please clarify which one is the investor as I am conFUZEd.
well thought sire. and i was gonna take the weekend off thx
Bruce, I think if you paid an athlete enough they would endorse anything. How are you going to prove the claims wrong? This FUSE seems like they can keep up with the banksters.
I think the point is the company doesn't make any money to pay top name sponsors.
Two thoughts just looking at the charts. Everytime it pops the 40 cent mark the sellers move in.
The Accumulation/Distribution screen shows that the sellers are leaving. The chart says No.
I would have to see cash flow and sales numbers. Also, debt vs. stock value. Not for me.
I don't like knowing how many shares are ready to be disposed of.