Organic Sales and Marketing Inc (CE) (OGSM) Quote

RIGHT TIME TO GET INTO THIS STOCK !!!

BUY BUY BUY BUY...

READY TO BURST...

IMHO

OGSM is having perfect play

OGSM is having perfect play

Hmm One day possibly

keep looking for that diamond in the rough.

It is pretty ugly. Not at all what I had expected based on my communications with management.

Results of Operations

Year Ended September 30, 2009, Compared to Year Ended September 30, 2008


Revenues for FY 2009 totaled $224,999 compared to $347,111 for FY 2008. This 35% drop in revenue is almost entirely attributable to declining economic conditions and the drop in retail sales. Gardening product sales were relatively flat for FY 2009 and advertising revenues increased by 60% compared to FY 2008.

Gross profit was 18.4% in FY 2009 compared to 29.9% in FY 2008. The 11.5% drop in gross margin can be attributed to decreased prices to stay competitive, the increased cost of raw materials and increased shipping and receiving costs. All of the changes were directly related to declining economic conditions.


Operating expenses increased by 5.5% during FY 2009, primarily due to a licensing agreement with Microbial Technologies for the use of their formulations in our manufacturing process. Due to the drop in sales the full savings margin effect on gross margins was not able to be realized. To offset these licensing costs, a number of our radio station agreements were not renewed; there was a cutback in personnel in the office and non-recurring legal fees associated with taking the Company public in May, 2008 did not repeat in FY 2009.


Other Income/(Expense) was essentially unchanged from year to year. In FY 2009, 2,736,800 warrants were granted to entice investors to participate in our private placement, incurring a warrant expense of $954,837. In FY 2008 bridge loan note holders converted their bridge loans. Each note holder was offered two shares of stock for each dollar of debt and accrued interest they were owed for a significant discount in stock price. As such, the Company incurred debt settlement expense of $685,421. Note holders were also granted one warrant for each dollar of debt and accrued interest owed which resulted in warrant expense of $239,549 for the grant of 184,120 warrants. Interest expense decreased 18% in FY 2009 when compared to FY 2008 primarily due to the bridge loans that were converted.


Liquidity and Capital Resources


Cash was $24,547 at September 30, 2009 compared to $27,838 in FY 2008 or a decrease of $3,291. Net Cash Used in Operating Activities decreased by 18% or $176,061 from the prior fiscal year. The net loss of the Company of $2,407,327 is offset, in part, by stock issuances, and options and warrants granted during the year in the amount of $1,376,820. Net Cash Provided by Financing Activities was $785,400 in FY 2009 compared to $805,032 in FY 2008 or a decrease of $19,632 which was due to decreased borrowings on the Line of Credit and lower cash received on Bridge Loans offset by a net increase in private placement raises of $86,397 and an increase in related party notes payable of $233,633.


Significant Accounting Policies

Significant accounting policies are defined as those that are reflective of significant judgments and uncertainties, and potentially result in materially different results under different assumptions and conditions and are incorporated in these financial statements. We believe that our significant accounting policies are limited to those described below.


Principles of Accounting


The Company employs the accrual method of accounting for both financial statements and tax purposes. Using the accrual method, revenues and related assets are recognized when earned, and expenses and the related obligations are recognized when incurred. The Company has elected a September 30 year end.


Use of Estimates


The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.



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Revenue Recognition


We earn our revenues from the distribution of garden and cleaning products to retailers and directly to consumers via our internet site and from advertising contracts. Four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed and determinable; and (4) collectibility is reasonably assured.


Revenue from garden and cleaning products is recognized upon shipment of the product. The distribution of products is governed by purchase orders or direct sale agreements which fix the price and delivery date. The Company records a provision for product returns and price markdowns as a reduction of gross sales at the time the product passes to these retailers or consumers. The provision for anticipated product returns and price markdowns is primarily based upon the Company's analysis of historical product return and price markdown results. Should product sell-through results at retail store locations fall significantly below anticipated levels this allowance may be insufficient. The Company will review the adequacy of its allowance for product returns and price markdowns and if necessary will make adjustments to this allowance on a quarterly basis. In accordance with GAAP, "Accounting for Shipping and Handling Fees and Costs," distribution costs charged to customers are recognized as revenue when the related product is shipped. Advance payments are recorded on the balance sheet as deferred revenue until revenue recognition criteria is met.


Revenue from radio advertising is derived from three sources, the sale of commercial spots on the Garden Guys radio talk show, the sponsorship of informative show segments and hosting live remote broadcasts. Revenue from radio advertising is recognized after the commercial has been aired and/or a remote broadcast has taken place. Customers will prepay for radio spots or remote broadcasts at the time they contract with the Company to air their commercials or host a remote broadcast. The Company will carry this prepayment as a liability, until such time as economic performance takes place. Money received is refundable prior to the airing of commercials or the airing of the remote broadcast, adjusted by any production or other direct costs incurred up to that point in time. Radio advertising for the years ended September 30, 2009 and 2008 were $40,210 and $25,260, respectively.


Cash and Cash Equivalents


The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. During the past twelve months the Company maintained cash in bank accounts which, at times, exceeded Federal Deposit Insurance Corporation insured limits. The Company has not experienced, nor does it anticipate, any losses on these accounts and believes their risk to be minimal.

The delayed 10-K will be out within a few days, and right now there are three low-ball bidders for OGSM at .11-.112. Interesting.

One week until the 10-K is due, and the marketplace is guivering in anticipation. I heard that some guy in Iowa ALMOST put an order in to buy stock but thought better of it. Oh well, maybe next week there will be a trade. Or next month.

10-K due out in two weeks and the CEO is excited about new orders. Total outstanding is less than 10 million - hard to know what the float is, but I think not more than a couple million.

anything new and whats the float??

USDA BioPreferred Program Spotlights Organic Sales and Marketing, Inc. (OSM, Inc.) Alcohol-free Hand Sanitizer

Dec 10, 2009 10:19:00 AM

OSM Hand Sanitizer is USDA BioPreferred Designated Item of the Month

RAYNHAM, Mass.--(BUSINESS WIRE)-- Organic Sales and Marketing, Inc. (OSM, Inc.) (OTCBB:OGSM) announced today that the United States Department of Agriculture's (USDA) BioPreferredSM Program has selected OSM Alcohol-Free Hand Sanitizer as the BioPreferred Designated Item of the Month (www.biopreferred.gov). OSM Hand Sanitizers are alcohol and fragrance free, non-flammable and non-toxic, and offer effective protection anywhere germs or irritants are found. BioPreferred is a Federal program that increases the purchase and use of biobased products made from biological or renewable agricultural materials.

Ron Buckhalt, Manager of the USDA BioPreferred Program, stated, "We are pleased the OSM hand sanitizer has been designated product of the month--so pleased that we are purchasing supplies of the product to distribute as giveaways when we speak at outreach events and exhibit at trade shows."

Sam Jeffries, President and CEO of OSM, added, "We are excited to be associated with the USDA BioPreferred program, and are seeing increasing sales from other businesses, federal, state and municipal organizations that have requested OSM brand items. The quality of our eco-friendly cleaners, fertilizers, and insecticidal products continually meet or exceed the expected results of most conventional types in their related classes. In addition, OSM products are biologically preferable and safe for our environment."

OSM, Inc. has contracted to supply Thermo Fisher Scientific Inc. and W.W. Grainger, Inc. throughout the United States and Canada with its OSM brand www.osm-inc.com line of Eco-Friendly products. Many of these items are available to Federal, State, and local government purchasers through GSA and other related contracts.

OSM, Inc. is a sales and marketing company of branded organic and natural products which markets to many different industries throughout the world. OSM, Inc. has relationships with major distributors throughout New England and the Midwest that distribute food and non-food organic and natural products to over 30,000 retail outlets nationwide. OSM, Inc. also owns the rights to the extremely popular Garden Guys talk radio show, www.garden-guys.com, heard on 96.9 WTKK-FM in Boston, MA from 6:00 to 9:00 AM every Sunday. The show discusses gardening and earth-friendly techniques for in and around the home. Sam Jeffries, President and CEO of OSM, Inc., acts as a host of the show. OSM, Inc. continues to source organic and natural products to complement their existing customer product offerings and will continue to use radio and other media for marketing and creating brand awareness.

Safe Harbor Statement: Statements about OSM, Inc.'s future expectations and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. OSM, Inc. intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to OSM, Inc. that is based on the beliefs of its management, as well as assumptions made by and information currently available to management.


Source: Organic Sales and Marketing, Inc.

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Organic Sales and Marketing
Inc.
Mark McEvoy
508-823-1117
mark@osm-inc.com

I guess no one noticed it or cared, but there was no 10-Q within a few days as I erroneously posted almost a month ago. I had temporarily forgotten that OGSM has a September 30th fiscal year, so the next filing we'll see from them will be the 2009 10-K -- sometime this month. Meanwhile, the stock is awfully quiet. I think we'll see some commentary in the 10-K about their increased sales over the past month or two as "subsequent events," and presumably a press release accompanying the K.

Right, a few people got excited about OGSM in September after reading their August 14th 10-Q, which talked about their USDA BioPreferred status and shipments of hand sanitizers to the Department of Homeland Security and Centers for Disease Control and Prevention. The stock ran up from .14 to .37. Then it got quiet again and has mostly been meandering around the .20s. The tricky thing is that there's usually a wide spread, and anyone who wants to buy it usually has to hit the ask.

The next 10-Q will be out within a few days, and I think they're also working on some other contracts that could be announced anytime. The press release yesterday was welcome because it signaled a new approach to keeping stockholders informed.

Volume looks to be picking up the past 3 months, good potential here. Has held this low price pretty well for the amount it is traded.

Here's some more info on OGSM that I've cobbled together. I've been in contact with the CEO and Chairman several times and met with them a few weeks ago, and I trust them. They never did anything to promote the stock before today, so this may be the start of a new awareness initiative. There are fewer than 10 million shares outstanding and almost all of them are held by insiders and the investors in their original "friends and family" private offering a few years ago. It's obvious from the recent trading that the float is tiny. The Chairman and CEO are very excited about the company's prospects and have lent the company their own money, so dilution at the current price level is not a concern.

Most of their business has historically been organic products for gardening and the like, but the secret weapon is their hand sanitizers and cleaning products that are effective against 99.99% of germs and are approved for ordering by the federal government. USDA "BioPreferred" products get preference in government ordering, so they expect increasing government sales of their cleaners and hand sanitizers as well as their other (garden product) stuff. Here's a section of their 8/14/09 10-K:

"Since its participation in the USDA BioPreferred show in June of this year, the Company has attained USDA BioPreferred status for many of its commercial cleaning and hand sanitizer products. This distinction continues to open doors for those distributors who sell the government through GSA and other related contracts. The Company has shipped orders to the CDC (Center for Disease Control) and Homeland Security. The Company anticipates additional interest within various government sectors in the near future. Furthermore, the Company is in discussions with two other major national and international distributors who sell to the government.

The Company continues to receive orders from Fisher Scientific, its National Laboratory Distributor that sells into the colleges and universities, Hospital and Healthcare Laboratory industries, Educational K-12 and Government services, the Company’s OSM branded line of all natural products to their customer base. The Company is now working with Fisher Scientific to add its products to the Fisher Scientific Safety division, which focuses heavily on municipal and government sales. The Company and Fisher are also finalizing the additions of its fertilizer and other garden related items. While this is a new category for Fisher Scientific, both companies see tremendous opportunities for both the school campuses and wine industry."

While I was meeting with them, someone called the CEO, Sam Jeffries, to tell him that a large midwestern university had just ordered 25 cases of their hand sanitizer. Sam is expecting a big increase in sales to schools. They are also in discussions with some huge companies that will be nice to have as distribution partners, and maybe to sell their own rebranded OSM products, and sales should begin to ramp up through all channels.

Got this email from a friend who I told about OGSM:

"Thanks - looks like a very interesting play. A story on NPR a couple of weeks ago talked about enormous growth in the hand sanitizer industry, despite the bad economy, with support from corporations/institutions and individuals. This stock seems to dovetail nicely with growing demand."

Let's see if some volume returns to the stock after they announce something. Right now it's a well-kept secret -- just one guy posted on it on SI 6 weeks ago:

http://siliconinvestor.advfn.com/searchresults.aspx?fqc=on&SearchStr=ogsm&where=Message

heres the link to request a chart
http://stockcharts.com/help/doku.php?id=support:feedback:symbol_request

We have a little company that has exciting things in their SEC filings but hasn't figured out the value of press releases. I hope this will change shortly.

what exactly do we have here