Winning Brands Corporation (WNBD)

[User-65225]

WNBD Market perspective (repost)

One unique trait that WNBD carries over the majority of penny stocks with similar market caps, is that they have a proven "growth model"... They have landed most every major department and hardware chain in Canada... and some of these same retailers are based in the USA, increasing the odds for expansion.

Most penny stocks have a business plan, but have yet to prove that it works... WNBD's model is there for all to evaluate. You can see which stores they're in via pictures/visits, you can go to the Wiki Site and see how they are developing their marketing campaigns for these stores, you can read the detailed emails by the CEO as to how they are executing certain aspects of their business, etc.

The fact that we can see this model in action is one thing, but to evaluate and FORESEE what it could do in a LARGER MARKET is the KEY. Lets examine this in more detail...

The majority of their sales have been in Canada, which has a population of only 33,212,696 and can be a harder place to market, due to how spread out it is. Comparison: California population = 36,756,666. Now pull up a map and compare the size of California to Canada...

Their current expansion into the USA mass retail market (population = 304,059,724) is the tipping point for sales IMO and they should start to compound rapidly once we hit the shelves of our first mass retailer... 1 USA location is equal to MULTIPLE Canadian locations (foot traffic)...

After comparing these populations, things start to become more clear. Heres a basic calculation using Winning Colours WHOLESALE price ($4.00-$5.00)... 1 million bottles sold = $4,000,000+ revenue... Glance back at those populations and remember this is just for ONE product.

Now, consider that every new customer that buys a bottle could potentially buy many more throughout the year. The products are CONSUMABLE... Especially paint contractors, janitors, maid services, etc that use it daily for clean up. Most everybody cleans and they do it often.

Warren Buffet (the so called greatest investor) made billions investing in Gillette (shaving razors) in 1989... His thought was that most everybody shaves and they do it often. A very simple philosophy, but oh so profitable having it as FORESIGHT.

The key is finding a play like this (consumable products company) right before the "growth stage", where sales compound rapidly due to proven sales HISTORY leading to future sales interest... Once you PROVE that a product is viable in the market place, many major retailers will carry it. Its that simple... They dont care if it works, they just want to make $$$...

http://www.netmba.com/marketing/product/lifecycle/

Growth Stage

The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firm's product is better than that of the competition.

During the growth stage, the goal is to gain consumer preference and increase sales. The marketing mix may be modified as follows:

*Product - New product features and packaging options; improvement of product quality.
*Price - Maintained at a high level if demand is high, or reduced to capture additional customers.
*Distribution - Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product.
*Promotion - Increased advertising to build brand preference.