Guynms26....I agree, I'm tired but I refuse to give up. Maybe China can save us? Don't LOL please! I put this together today to add some hope:
China Write-up for PLSB Stock 9-26-15
CHINA ANALYSIS:
I like to remain positive. I must! I’ve got too much skin in this “PULSE” game…probably more than anyone here.
China/Rosa Trading Company/
Anyway, I think there is hope in the China markets. One month ago (8-26-15) Pulse announced an order for Cabana products, 1500 cases (small but a start) by the “Nantong King” Food Co, a member of the Beijing Rosa International Trading Company which is based 50 miles north of Shanghai, the largest port city in China.
Rosa’s mode of operation includes transport of goods from the country of origin (in this case the USA) to Chinese markets. Also Rosa sometimes invests in the companies whose products they are transporting. (Cross your fingers!)
Rosa’s facility locations in China include the Beijing/Tianjin metro area and the surrounding 2 Provinces of Liaoning and Hebei. This Beijing metro area alone has a population of approximately 127.5 million. Additional Rosa facilities are located south of Beijing and from north to south are the Provinces of Shandong and Jiangsu, the port city of Shanghai, and the sub-tropical Province of Fujian.
It turns out that these locations are all on the east coast of China. If a few other east coast provinces that are interspersed among the aforementioned provinces are included in the prospective Pulse market areas, then the entire east coast of China is covered. These provinces include Anhui, Zhejiang, the sub-tropical/tropical province of Guangdong ( which includes the cities of Hong Kong and Macau) and the tropical island province of Hainan. The combined population of this potential market area is 574.1 million. OVER ½ BILLION!
This east coast of China can be easily compared to the east coast of the USA with respect to length and climate.
Beijing in the north to the tropical island Province of Hainan in the south is a distance of 1804 miles. Additionally, a very high-speed bullet train covers 1428 miles of these 1804 miles, from Beijing to the Guangdong Province capital city of Guangzhou. In comparison, Bar Harbor Maine to Miami FL is 1769 miles.
The climates of both coasts can be compared. From the Liaoning/Beijing climate comparison with the New England/New York climate, to the Guangdong/Hainan climate comparison to Miami and southern Florida’s climate, to two coasts are very similar, except for one thing…..population.
The tropical/sub-tropical population of the China east coast is approximately 207.1 million. This is a littles less than 2/3’s of the entire US population. If we add persons living in warm humid temperate climate zones this number jumps to 446.6 million. That’s 446.6 million people living in either a Tropical/sub-tropical or warm humid temperate climate zone! That’s a lot of persons needing rehydration with a new novel drink from America and that’s 35% more than the entire US population. This is particularly interesting if the use of air conditioning is low in China (as someone said in a previous posted message).
PRICE POINT?
Picking a price-point for Cabana could be a challenge particularly with a falling Chinese Yuan. Rosa’s president said the wealthy will be interested in Cabana. I looked at a comparison of income distribution in China and was very surprised! Both countries have almost identical income distribution percentages.
Income share held by the highest 10%:
China 28% USA 27%
Income share held by the highest 20%:
China 43% USA 45%
Income share held by the lowest 20%:
China 4.9% USA 4.9%
Maybe the price point is not that critical on the Chinese east coast. A majority of the wealthy live on the east coast so maybe an ample portion of the population can afford Cabana?
I don’t know……. I’m getting burned-out now…. Got to go. I wish management would keep us apprised of China and all the other markets! I’m getting tired and older. Now I'm LOL'ing!
Bob G.
