MARL Picks RUNU - Rudy Nutrition

Since I picked RUNU (Rudy Nutrition) as a company to
write this weeks report on... The stock (as predicted)
has risen 24% (from $0.89 to $1.11).

Just to bring this down to earth, had you invested
$10,000 in RUNU when I sent the email... You'd now
have roughly a $2300 profit (taking account of trading fees).

And though I call this newsletter Doubling Stocks, trust me
a 24% gain in a matter of days... Is nothing to sneeze at.
It's more than the yearly gain of legendary investor Warren
Buffet... Whom in his prime produced 21% a year.

And just think... that kind of profit could buy a European
Holiday for the family, or maybe 12 months worth of payments
on a new car...

And for what? Reading your email of an evening, spending an
hour or so researching stocks I write about in order to make
sure it really is (in your eyes) a sound investment.

In my opinion, (especially in the doom and gloom of the coming
recession)... Penny stocks are the only place where these kind
of profits are doable... on a WEEKLY basis!

If you did take profit on RUNU... Congratulations, But...

If you did decide to invest in RUNU and have not yet taken
profit... Then I think that is a wise move. In my opinion
this stock will continue to rise over the next few days,
possibly to around $1.50.

And from RUNU's close today of $1.10, I still think the stock
is a bargain at that price.

And here's why:

If you had been watching RUNU this week, you must have realized
that the stock has been propelled to these levels by the very
promising and interesting news that has been released.

(See: http://finance.yahoo.com/q?s=RUNU.PK)

In the report I sent you about Rudy, I said how the main reason
drink (and other perishable food goods) companies fail is
because of distribution.

These goods have a very limited life from the day they are
produced to the date they must be sold by.

And truth be told, I usually avoid food stuff companies for
this very problem: A distribution network is expensive and
complex to setup, unlike their competitors such as Coca-Cola
whom can use one of the largest international distribution
networks in the world...

These smaller companies start with nothing, and they start
their business with a huge set back from the get-go.

Not only that but a small distribution network comes coupled
with another problem.

We are all brand junkies. We buy Coca-Cola over Pepsi, we rent
cars from Hertz instead of Avis... And this is not because
one offers better service than another, or because one tastes
better (though my daughter would beg to differ)... It is
simply because one has a much larger advertising budget.

And if we analyze that further. Let's imagine "Ma & Pa Drinks Co."
are pitting themselves against the mighty Coca-Cola. Ma & Pa know
that to sell any drinks whatsoever they need to Advertise.

And the obvious problem is they don't have as big a budget as
Coca-Cola. But not only that (and here's where distribution
comes in) they cannot run a large scale Television campaign
as they could only manage to get distribution in 7 of the
50 US states.

In addition while Coca-Cola can divide their multibillion
dollar ad budget by billions and billions of cans of Cola.
Ma & Pa Drinks Co. Have no such luck.

Meaning the advertising expense to Cola may be just $0.02 per
can, while a good ad campaign could double the per item cost
for Ma & Pa Drinks Co.

Now this little story may have bored you, but trust me it
has a part in why I initially chose Rudy Nutrition.

You' See first of all, a new drinks company meet the distribution
problem. But as I told you in the initial report Rudy already
has distribution agreements with the leading specialty drink
distributors in the USA.

So... During my analysis I ruled out this as a possible flaw
in the business.

But in addition over the past few days, news has been released
by the company that they have expanded the distribution network
even further. A big step forward for a company in this industry.

Secondly as I just said, the small drinks companies come up
against the problem of high per unit advertising costs.

What solution can there be to this problem?

It's quite obvious. Rudy Nutrition is backed by the famous
Rudy Ruettiger, and this isn't some weak endorsement... He
owns the company.

So he is hauling ass (to use a crude phrase) to get this company
known and he's doing this without being paid, and without spending
the companies money.

In fact... news released also confirmed this:

"Daniel 'Rudy' Ruettiger & Rudy Nutrition, Inc. Make Noteworthy
Appearance at the National Automatic Merchandising Association
Spring Expo"

In addition because of his celebrity status, and because it is
his name used to sell the drink... Tests have shown it to
outsell Powerade and Gatorade when pitted against each other...

Without The Million Dollar Advertising Expenses!

Just another reason why having this as "Rudy's Drink" is a
great great asset to the company.

What I have mentioned thus far are the major reasons drinks
companies fail. And I've also explained why I believe Rudy
will not, specifically due to these excellent competitive
advantages the company has over the competition.

And during the current drive, of the company, for more exposure
both to investors and to consumers... I believe these points
will be taken account of... and the price will rise even
further to around $1.50.

Best Regards,
Michael Cohen

P.S. By the way I mentioned the main reason I believe the price
is currently rising is because of the companies efforts to
raise awareness between both consumers and investors...

Check out the TV Spot:

http://www.doublingstocks.com/runu/video1.php

That ad has been running on Bloomberg, CNN, CNBC and most
other large financial television channels along with some
consumer channels... All this week. Watch those channels and
you'll see it running fairly often.

Get Your Daily MARL recommendations at DoublingStocks.com