BOULDER BRANDS INC. Follow-up | BDBD | March 5, 2013

Prescience Point has published a follow-up report on Boulder Brands’ (Nasdaq: BDBD), consisting of a deep-dive look at the company’s Q4’2012 results and management’s 2013 guidance. In short, the story does not add up and we expose the red flag components of its missing pieces.

With the stock having fallen 28% since we initiated the company at Strong Sell on February 26th — despite the company reporting that it, “Delivers 35% Net Sales Growth & 15% Organic Net Sales Growth in the (4th) Quarter,” and “Increases 2013 Outlook” — we suspect that the market has already seen through most of the charades. Still, many fresh, value-added insights are hidden deep below the surface and we have pulled the puzzle together with our own observations.  We are downgrading our price target from $4.00 to $3.00 on the risks of a convent breach and likelihood of an imminent, highly dilutive equity capital raise.

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Disclaimer: This research report expresses Prescience Point LLC’s opinions. Use of the research produced by Prescience Point LLC is at your own risk. This is a short-biased report and you should assume the author of this report and its clients and/or investors hold a short position and derivatives tied to the security of Boulder Brands, Inc. that will benefit from a decline in the price of the common stock. Following publication of the report, the author (including members, partners, affiliates, employees, and/or consultants) along with its clients and/or investors intend to continue transacting in the securities covered therein, and may be long, short, or neutral at any time hereafter regardless of the initial recommendation. The author of this report has obtained all information contained herein from sources believed to be accurate and reliable and has included references where available and practical. However, such information is presented “as is,” without warranty of any kind– whether express or implied. The author of this report makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. Forward looking statement and projections are inherently susceptible to uncertainty and involve many risks (known and unknown) that could cause actual results to differ materially from expected results. All expressions of opinion are subject to change without notice, and the author does not undertake to update or supplement this report or any of the information contained herein. Prescience Point LLC is not a broker/dealer or financial advisor and nothing contained herein should be construed as an offer or solicitation to buy or sell any investment or security mentioned in this report. You should do your own research and due diligence before making any investment decision with respect to securities covered herein, including, but not limited to, the suitability of any transaction to your risk tolerance and investment objectives and consult your own tax, financial and legal experts as warranted. READ THE COMPLETE LEGAL DISCLAIMER CONTAINED IN OUR REPORT.

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