Analyst Coverage

VITAMINSPICE

VitaminSpice is the first public company to focus on a new line of proprietary spice and vitamin blends that offers a convenient and effective way to nourish the body, and is perfect for anyone who wants to augment their nutritional intake throughout the day. These new and innovative products that are made from blends of premium herbs and spice that are packed with essential vitamins, minerals and anti-oxidants. Perfect for families who want to boost the nutritional value of their meals without swallowing pills. VitaminSpice was the inspired creation of Ed Bukstel, a father with a lifelong commitment to health and nutrition. Vitamin Spice was born from an “Ah Ha” moment in the kitchen while Ed was cooking with his daughters. 

FLASH: On December 15, 2009, VTMS’s newest member of the Board of Directors, William “Bill” R. Fields commenting on joining VitaminSpice and on the uniqueness of its products. He stated”VitaminSpice’s technology and ability to enhance health and nutrition through the use of everyday products is a real breakthrough. They have created an easy and convenient format that does not alter the quality of the base products” Mr. Fields is Chairman of InterSource Enterprises. Ltd. Mr. Fields is a Director of Lexmark International, Inc. He has also served as Chairman and Chief Executive Officer of Factory 2-U Stores, Inc. from 2002-2003. President and CEO of Hudson’s Bay Company from 1997 to 1999 and as Chairman and CEO of Blockbuster Entertainment Group, a division of Viacom, Inc. from 1996 to 1997. Mr. Fields has also held numerous positions with Wal-Mart Stores, Inc. which he joined in 1971. He left Wal-Mart in March 1996 as President and CEO of Wal-Mart Stores Division, and Executive Vice President of Wal-Mart Stores, Inc.     

VITAMINSPICE

INITIATING COVERAGE

VitaminSpice is a food-ceutical company based in Wayne, Pennsylvania. VitaminSpice is the first of its kind that has created healthy solutions to nourish the body by merging proprietary blends of premium herbs and spices with essential vitamins, minerals, nutrients, and antioxidants. We expect VitaminSpice to emerge as one of the most attractive players in the health/food supplement industry. VitaminSpice offers a natural, taste masked, solution for marrying nutritional supplements with consumer’s busy lifestyle. Ranging from 17% to 84% of the Recommended Daily Intake (RDI) with no bitterness or aftertaste.

The company currently offers six different spices coupled with six different vitamin/mineral formulations resulting in 36 total product offerings. 

KEY PROJECTS

• Indications of interest above $10 million from various health food stores, retail outlets, major grocery chains, and home shopping companies
• Iron Chef America co-marketing/co-branding products such as Sea Salt, Granulated Garlic, Ground Black Pepper, Crushed Red Pepper, Italian Seasonings, and a dessert blend which are cinnamon and colored sprinkles. All are multi vitamin fortified
• MOU with major European distributor, final agreement TBA end of first quarter
• Christina Pirello. to develop spice blend for athletes
• Partnered with the former CEO Walmart, Bill Fields, for US distribution
• Partnered with single largest Chinese public sector JV in China , Intersource, for product dist throughout China
• Finalising acquisition of key technology related to the microencapsulation process
• Canada and Australia distribution expected to be signed by beginning 2nd quarter

SUMMARY

When vitamins were first discovered, no one had any concept of DNA or the genetic code. Today we have a respectable but still a very incomplete understanding of the vital importance of nutrients in foods and food additives. No one could argue that the future of nutritional medicine holds wondrous possibilities. Ongoing research and clinical experiences as well as the “Ah HA” moment in the kitchen by the founder demonstrate this. Our view and vision has had limitations over the years but the door is now wide open for what is yet to be discovered. The global vitamin market is estimated at $3.3 billion and growing, which translates into a favorable outlook for the next decade and beyond. Various studies of merit are promoting vitamin consumption in a big way and there continues to be a noticeable demand for supplements and food fortification, especially in the U.S. Vitamins are substances that your body needs to grow and develop naturally. There are basically 13 vitamins the body needs. They are vitamins A, C, D, E, K and the B vitamins (thiamine, riboflavin, niacin, pantothenic acid, biotin, vitamin B-6 and folate). Each vitamin has specific jobs. If you have low levels of these certain vitamin types, people may develop a deficiency disease. If VTMS, through the efforts of Mr. Fields, via his company InterSource Enterprises, Ltd. is successful in selling VitaminSpice products to thousand of outlets in Asia, we could see their distribution and sales soaring along with revenues. This would be possible due to the lucrative emerging markets in China. The Company expects to see products coming to stores such as Target Corporation (TGT), Whole Foods Market, Inc. (WFMI) along with Wal-Mart Stores (WAL), while going head-to-head with McCormick & Co. Inc. (MKC), the single largest spice company in the world.

INVESTMENT SUMMARY

The valuation methods to support our speculative target price of $1.25 are based primarily on future assumptions. Since VTMS is a pioneer in its field and has no competition at this time, and appears to be undervalued because the market is not yet aware of what the company offers, does lead us to believe this company is waiting to be discovered. This may allow for a lower risk even though it could take time for the market to adjust the stock’s valuation. All this is predicated on the company’s ability to follow their business plan.

ANALYST

Officers of Market Advisors, Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investor's Business Daily, Barron’s, Forbes Magazine and The Dick Davis Digest to name a few.