Winning Brands Corporation (WNBD)

[just_an_ant]

It's late, but a quick snapshot of some things

Preferred converts to common 1:1; so the preferred really just there for "voting rights"

Trademarks, patents, product development (formulas) assigned a value of $1 (one dollar) combined. Given R&D they have expensed all associated costs. Interesting that you'll find other companies assigning $75k-$100k per product; with WNBD noting 8 products that would be a cost value of approximately $800k. Their value is not $1, but conservative to state them as such.

Expect margins to approximate 50% when production is almost entirely for sale.

Debt appears mostly flexible and extendable, and favorable to company in payment terms, etc.

Has earned a good reputation in the capital markets as a non-reporting issuer

SKU trading partner status with USA Lowes. Not able to comment beyond that. Discussions with other USA National Accounts at various stages.

DRTV should be beneficial

Will increase R&D in 2010 towards new formulations and 3rd party certifications

Expects to pass through Implementation Phase ($1-$3 mil) or Growth phase ($3-$5 mil) in 2010

O/S as of 1/31/2010 is 1,413,823,353 with Float at 1,251,601,998

A lot of meat in there to read and digest; but basically, the confidence that USA Lowes will initiate in 2010 and DRTV will open even more doors including additional national accounts is what is going to drive WNBD forward at a margin rate close to or around 50% on product sales at the wholesale level.