Aventura Equities Inc (AVNE): WNSH & the Potential Byers Food Company...

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Re: reconranger post# 7890

Sunday, 07/15/2007 7:31:42 AM

Sunday, July 15, 2007 7:31:42 AM

WNSH & the Potential Byers Food Company RM…

I am thinking that Byers will be only one of many companies to merge into WNSH. That’s why it’s a holding company. Being a holding company means that the holding company will act as an incubator towards profitable private companies that have graduated to be made public. Private companies do this because of not just being profitable, but fundamentally ready for growth to share their product, business, or service with the world because of it being a demand.

I must admit, when VOIP-INTERFACE shared his due diligence (DD) that Byers Food Company might be a serious candidate for the WNSH reverse merger, I wasn’t sure how to take such. Then when I researched the BYERS website, many other links, and other major companies within the same market to compare and contrast.

When I "Googled" Byers Food Company, one of the links I came up with was below:
http://www.google.com/search?hl=en&q=Byers+Food+Company&btnG=Google+Search

Seeing Byers with the likes of Dole led me to do some further research as this might be bigger than I expect. This also led me to consider other companies to compare and contrast a bit with too; Del Monte and Campbell’s. Before I compare and contrast Byers Food Company with Dole, Del Monte, and Campbell’s, first understand some things in which to me, I personally see as fact.

If I went to the store to buy some canned green beans, corn, etc., I am not going to buy just one can. It will probably be a few of them. I would now consider that since I would be buying more than one can, price would be what I would look at first and the name brand second and not the other way around. If a can of Del Monte green beans is sitting on the shelf at around .40 per can, but next to it is a can of Byers green beans for .30 per can, I would probably pick-up my bulk cans of green beans from Byers to purchase. This would be because of me buying in bulk and because of the price difference.

The same logic would apply if I was going to buy some Dole pineapples with seeing right next to the Dole pineapples some Byers pineapples much cheaper. Also, the same logic would apply if I was going to buy some Campbell’s Soup with seeing right next to the Campbell’s Soup some Byers Soup much cheaper.

While Dole, Del Monte, and Campbell’s each specializes in a certain niche of canned goods food, Byers specializes in each of their niches and a few others. This could be very huge as they corner a variety of food arenas versus just one, two, or three of them. Actually, this is why I think they are going to be bought out by a major well-known company, but I won’t go there since I have not confirmed such to be official. It only makes sense to me for a certain manufacture to potentially corner the Industry.

Psychologically people like to feel like they are getting a good deal and would probably take the Byers products in all the examples I just mentioned above. Heck, after seasoning up those green beans, one could probably never tell the difference anyways.

I guess my main point is that enough of the grocery store consumers out shopping would buy the name brand that is already established and better known, but there would be enough that would buy the cheaper or at least try it out too. Byers Food Company has been around for almost 10 years so they must be doing something right.
http://www.byersfood.com/

Del Monte Foods Co., Dole Food Company Inc., and Campbell Soup Company are all very well known companies within the wholesale food industry/market. Below is what blew my mind when I further researched Dole, Del Monte, and Campbell’s.

Dole made $6.2 billion last year in Revenues. Reference their 10K filed 23 Mar 07:
http://www.dole.com/CompanyInfo/PressRelease/PressReleaseDetail.jsp
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=4764527&doc=1&total=&back=2&...

Dole was publicly trading on a major market before obtaining such growth to then decide to go private and make a deal to buy their common shareholders out for $33.50 per share in cash. Reference the link below:
http://www.dole.com/CompanyInfo/Relations/GoPrivate.jsp

Del Monte trades on the NYSE at $12.69 Per share; ticker is DLM.
http://finance.yahoo.com/q/pr?s=DLM

Campbell Soup Company trades under the ticker CPB trades on the NYSE at $39.26 per share and is a global manufacturer that is 136 years old with over $7 billion in annual sales and a portfolio of more than 20 market-leading brands.
http://investor.shareholder.com/campbell/

This was enough to compare for me to convince me that Byers Food Company is the company that I would LOVE to see reverse merged into us WNSH shareholders.

If Byers Food Company is currently ready to go public, then I would have to guess that it is because they must have a major contract that have been closed with a major retail grocery store or stores. I read somewhere while doing my DD that they had some contracts, but I was not able to get an amount or further confirmation. I also read somewhere where they have been in business since 1998.

Since Byars have been in business since 1998, I would like to think that they are profitable enough to realize they are ready to go public to take their level of growth to that of a major market company trading on the NASDAQ, NYSE, etc. as the likes of Dole, Del Monte, and/or Campbell’s.

Another beauty of a reverse merger with Byers Food Company would mean that WNSH would be considered a company trading within the Sector called Consumer Goods within the Industry called Processed & Packaged Goods. Within the valuation post within the IBox, I used a conservative PE Ratio of 12 as the growth rate to use as the multiple to multiply with an .00398 EPS to derive the .047 per share price valuation.

If Byers merge into WNSH, the Sector has a PE Ratio of 23.93 and the Industry has a PE Ratio of 21.20 as indicated in the link below:
http://biz.yahoo.com/p/3conameu.html

This means that as from the logic where a .00398 EPS was logically derived to generate a .047 per share stock price in the post below:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=21087663

Consider now this since we can use 21.20 as the PE Ratio instead of 12:
.00398 x 21.20 (Industry PE Ratio) = 0.084 per share

This means that with a Byers Food Company reverse merger, WNSH would immediately be worth .084 per share. However, I think if the Revenues of Byers even closely mirrors a small portion of its competitors Dol, Del Monte, Campbell’s, etc., then I think we could expect to see a share price to meet the qualifications for going to the NASDAQ or NYSE in my opinion. I’ll let you all figure out the math on that one to keep others from thinking that I might be trying to hype WNSH at this point.

Up to this point, I am very impressed with the potential that WNSH brings to the market that exists for one to DD. I recommend anyone researching WNSH to please research greatly to where you are at peace with your investing decision whatever that might be. WNSH is a stock I believe will be remembered over and used as the prototype for future penny stocks to go from dirt to gold. These are only my opinions.

v/r
Sterling

Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262