Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

Thanks to PKG! Through his relentless effort to draw back to past sales, he has proven this stock and this market have priced this stock perfectly for failure. The market says it will fail and accordingly the price has failed with it.

Let us be reminded then of the most important point of all. Because this failure rate has been pervasive on the stock for over 2 years now, nothing whatsoever has been priced into this stock for any one of the following things on the table: Kid Rock explosive LINE OF BEERS introduction, Olifant immediate accretive sales from November with immediate shipments to Israel, initial pre sales shipments of Leyrat cognac, initial sales of Topless Sparkling Vodka, 20000 cases of Trump Vodka to Israel, additional sales surge off the Platinum Grape Vodka rating at the WSC in Geneva, the $2.5 million in initial sales to Germany upcoming, the Violator deal and inclusion of 50 Cent and Dre on upcoming products, the media blitz from Universal and Violator, the inclusion on every episode of Celebrity Apprentice, the 30 outdoor concerts, the introduction of Glory and Diamond Cognacs, the introduction of Trump Vanilla Creme, the Walter Reed Charity inclusion for Trump Vodka that might just find itself on Celebrity Apprentice, the 300% growth rate over the next 12 months, the current record sales quarter, a move to profitability, the call to be a billion dollar company, and any number of positive upcoming events not yet named including a scotch with a golf icon and the nationwide re-introduction of Rheingold Beer.

Let me share this much with you. It goes back to what I said before and cannot stress enough. Should any one of those 21 things I listed above happen, this company is no longer a failure. Thanks to Coach, we have a daily ongoing list of "called for" events by the CEO to refer to. This means that any or all of these things are happening as we speak. That means the market is currently mispricing this stock and doing so in grand fashion. Stocks get overdone to the downside when they fail. They get overdone to the upside when the implication for success is overestimated. It is just that simple. You cannot argue the point any other way.

Let me draw your attention to the wildly popular American Idol. Season two saw Ruben Studdard win. Yet it has been Clay Aiken and Kimberly Locke who have enjoyed the greatest success. Why? Because they got in the game and got in the spolight. Same with Season Three that saw Fantasia win. But it was Jennifer Hudson who won the Academy Award for Dreamgirls. And again with Chris Daughtry even though Taylor Hicks won.

Why does this happen? Because at the moment a given artist captivates your attention but other players can break out and grow on their own. They come from nowhere and rise to stardom simply because of visibility.

I have to apply that to what is going on with these rumored Labatt and WT purchases. Things like that just don't materialize out of nowhere. Think about it. On the surface, it seems so outlandish and far fetched. Just as some singer from Podunk USA getting on AI, finishing third, and then winning an Academy Award would right? But the fact that it is out there and makes perfect sense, you have to go one step further.

I already told you and PK told us that Anheuser Busch was shopping the company for Rheingold. As I stated before, that means the largest beer company in the world and in existence for 150 years wants something that this little $15 million company has. That alone says this company IS NOT the failure the market represents it to be. The biggest and the best recognizes you and for that, the price of your stock should be higher. Because it is never just one company that wants what you have. There is and will be others.

The deal went away ONLY because acquisitions were curbed during the ABIB merger. But the door never closed. When all the articles were being written about capital NOT being available in this economy right now for an acquisition like Labatt, that signaled a big red flare that Labatt could be bought well under its market value. Especially since the closing of the ABIB deal hinged solely on the license being sold.

Now, take it a step further. Examine PK's response again to the question. He didn't bat an eye at the thought of it but deferred it to not at liberty to discuss it. Anyone else would have said it was out of their range at the present or something they might look towards down the road. The same with The Turkey. He answered by saying The Turkey was a qualified icon. That means he knows the price tag of the brand and once again, did not defer to it being out of the realm for DKAM to pursue.

I have thoroughly investigated the companies being talked about as suitors for Labatt. Every single one of them currently has access to a brewery and distribution network that will dilute the brand. DKAM is the only company out there that can offer a beer expansion presence currently under way with iconic stature. No one else can offer that. Also, and a big....no HUGE plus...the caller said any truth to the rumor DKAM is bidding the Labatt deal. He didn't ask if they were going for it or had thought about it. That tells me the biggest of all things I have told you before.....

In order to be bidding the license, they would have needed to secure the backers to do so beforehand. The Labatt license is an all cash deal. DKAM is trying to get the Authorized raised from 100 mil to 500 mil. As I have already pointed out, when a company announces 300% growth and exponential growth by acquisition, you can spin it any other way you want. You will be wrong. There is only one reason and one reason only for this dramatic raise at this time. It is because a MAJOR acquisition has presented itself right here....right now. This means that somebody somewhere decided in this economy where cash is not available that this little company everyone has spent so much effort in talking into the ground along with the price of the stock is a viable candidate for these two or any other number of acquisitions. Kenny cannot do all these acquisitions he keeps referring to without money coming in from outside. That means he knows he has backers and they are offering capital because the company will be successful in their opinion. Completely the opposite of the market. That alone should have this stock exploding. And guess what?? OMG!!! Will it ever.

So put it together. Priced for failure in the market. Any one of 21 things not priced in the stock whatsoever. Rumors of two $100 mil+ acquisitions that are cash deals that DKAM has to have found backers for in order to bid. That says these money guys are 100% confident this company will succeed for many years. It also says DKAM can and will make ANY purchase like these two rumored deals which Kenny has already said will happen. Simply because the big money guys price these deals for investment on trailing cash flow. They know they are buying brands that are profitable.

One thing you should know. The original decree for Labatt calls for a 60 day mandatory question period to elapse from November 14 before a suitor can be named. That expires on January 13. The annual meeting is January 15.

How convenient.

Oh, and one more thing. An acquisition is not one of the 21 things above that are happening or going to happen.

More severe market misspricing especially since PK told you exponential growth of the company is coming by way of acquisitions.