Castle Brands Board (ROX)

[FUNMAN]

Calm the takeover rumor mill. The likelihood is that someone started a rumor using just enough facts to make the story believable.

They used our own interest for a takeover to happen against us. They sucked in speculators who raced in to buy shares in the hopes of a quick buck, who lost up to 15% of their investment in a day.

Remember the story about the boy who cried wolf. That is "to give a false alarm", false claims so to speak, with the result that subsequent true claims are disbelieved.

If ROX really did encage Parella Weinberg Partners that would be significant. Maybe they did.

Then we too should be scooping up as many more shares as we possibly can afford.

We should not be fomenting the rumor in hopes that "others" keep buying up our shares.

That will only give us a false PPS high and subsequent crash as happened yesterday.

We should not be the ones on this board fueling the fire without facts.

Just look at how absurd the Bloomberg news was. They injected a flurry of 3 bigger named companies just to whet ROX'ers appetite.

I believe a fake news blogger wrote it almost like Bloomberg did:

Castle Brands may also attract bigger rivals, such as Diageo Plc, the world’s largest distiller, and Pernod Ricard SA, the people said. Heaven Hill Distilleries Inc. may also consider a bid, the people said.

We know ROX will engage someone eventually. But this is only going to happen once. If yesterday was it, great.

But if all the market thought of us at best was $1.90, I will be very sad. I will make a handsome profit but I want so much more in a few years.

ROX is on the cusp of putting 35¢ - 40¢ of every additional revenue dollar on the bottom line as a GAAP black number. What's the sudden rush now?

I've waited since 2009 for them to reach breakeven and start posting GAAP black numbers. It's going to happen this year.

The value of ROX will be so much greater a year from now. Why sell out for so little.

Put that in perspective.

If all the market thought of us yesterday was $1.90, then Mr. Frost can't even take out of the deal more than he is owed from the company.

The story had to be fake news. It would have never lost its legs so fast if it was true.

We know ROX has been actively touting the financial and synergistic advantages a larger company would experience. But it would only be because of synergies as a result of laying off most of ROX's staff. All the other marketing, product and even debt expenses would continue.

All of the Selling / General and Administrative Expenses total about $8 million annually. The way ROX lumps everything together, that's payroll, promotions, advertising, rent, paperclips, I mean everything.

So right now we have a breakeven company where $8 million might possibly be accretive. A larger company might also be able to provide supply side benefits.

We know ROX wants to sell the company and they have been laying the groundwork for 2 years now. The rumor blogger used that against us.

The further locking up the Goslings / ROX partnership up to 81.1% is significant, but the most significant point of that deal was that ROX tied it up to 2030. Mr. Frost will be 100 years old.

ROX did the deal to make Goslings more attractive to a buyer. It's the duration of time that was most significant.

The possibility of ROX having engaged an M&A firm exists. If ROX sells out in a range under $2 now it makes no sense.

If ROX was valued by the street as a $3, $4 or even $5 company, we would have sky rocketed to those numbers and held.


If you read this far, then maybe you also read my post from yesterday when I urged you to watch the 60 Minutes segment on Fake News from last month. You might have even watched it.

If you are like me, it would have made your blood boil.

I again urge you to watch it. You will become a healthier sceptic as a result of it. You will question what you see, hear and read, more so than ever before.

Verify facts. Don't be guilty of spreading rumors. It's one thing to hope we're going to win the lottery here. It's a whole other thing to believe it because you wish it were true.

The link to the 60 minutes segment is at the bottom of this post.

How fake news becomes a popular, trending topic

Watch this 60 minutes segment (see link below) from a few weeks ago. It's easy to become cynical when you realize there are people out there who can do this easily.

Some people who have an ulterior motive and computer savvy can get news outlets to pick up and legitimize their fake news. They need to get it to trend on social media.

Watch the 60 minutes segment.

Today would have been an blueprint example. Buy shares, generate a takeover rumor, sell high and short. This collapsed so fast, it was the opposite of the flash crash from a few years ago.

http://www.cbsnews.com/news/how-fake-news-find-your-social-media-feeds/