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Re: Nick1959 post# 6471

Saturday, 08/30/2014 10:57:14 PM

Saturday, August 30, 2014 10:57:14 PM

Post# of 16982
It's actually a terrible blog post (it's not even an article)!

They compare the stock price of JAMN to what Monster was several years ago. 1) Comparing the price per share of stock is irrelevant; it's more important to look at sales, market capitalization and growth. 2) The stock price isn't compared correctly in any case! They mention that the price is adjusted for stock splits, but they present the prices as if that's what Monster traded for back then - it's not!

They completely misrepresented the amount of money that Mother Parkers is putting in. MP would only put in a total of $8 million if there was growth for JAMN; that's not the case.

They claim that Marley plans to put out 1,000 automated machines. This is not true - a private group, set up by AVT, the creators of the machine, had claimed that they would distribute 1,000 machines by the end of 2013; as of now, there are only 70 machines distributed. JAMN would only sell the beans; they wouldn't get the profits of the actual coffee sales.

They claim that a bike cafe sells 250 cups of coffee per day. Let's assume that it's 1 person on a bike working a 12 hour shift. That's 20 cups of coffee per hour, or about a cup every 3 minutes - for all of the 12 hours, no lunch or bathroom breaks.

They keep on claiming that JAMN will create coffee shops, but their current license agreement actually prohibits that. Then they talk about how Starbucks is in a decline, but maybe Starbucks should buy out Marley (why would that be a good thing if they're on a decline?). But that's nonsense; JAMN doesn't have any real assets; they don't own the Marley Coffee name - they only license it and Rohan could just turn around and revoke the license.

They also suggest that Keurig buy JAMN to corner the market for Jamaica Blue Mountain Coffee, but that's not true, either - JAMN doesn't own those beans; Rohan's private company does and he could decide not to sell to Keurig.

They do an analysis of Albertson's, claiming that the 1,000 stores could generate $10 million in sales per year. Well they're in 5,000 stores at this point and they're not even on track to do $8 million in sales for the year, so that analysis is a bunch of hogwash.