Smoky Market Foods, Inc. (SMKY) Chat session 29/05/2012
SmokyCEO: Hi to all ... I'll begin with a statement to provide a clarity on status right now and to make the chat most efficient.
It is because of the financing action in play that I am maintaining an extreme quiet period; this is serious stuff that we're into and all real news and even up-dates need to come formally thru PR.
In dealing with major investors from large food companies, to hedge funds to private wealth, there is huge capital out there, but totally an investors market and negotiations don't move quickly.
There is a huge spread between our low market cap price/value and the EPS we forecast for our 3-year model out to investors, and this is the sole issue we're dealing with, otherwise funding would be in sooner.
In lieu of having revenue to substantiate marketing/sales proforma so that our higher market value perception can be held, I'm forging marketing/operating alliances including the acquisitions.
This stage or level of financing is about mitigating risk in order to control the dialog with investors, and by being able to remain in the hunt to perfect our plan, we have the chance to win this game.
I begin traveling tomorrow 3am and very excited at what's ahead.
Another point to remember .... there ARE NO EYES ON SMKY.... we have not paid cash nor shares to promote the stock ... that's all going to change when financing is done and action begins.
I will be branding SMKY stock in basically similar manner as branding SMKY product, plus the addition of qualified IR firms getting nationwide eyes on SMKY.. It will begin with financing.
In addition to other business dealings, I'm viewing our Canadian fish company target this week. No firm deal yet on the east coast processor. Iowa deal is sealed subject to financing.
- Is it appropriate to ask what the 3-year model out to investors is?
On the question about the 3-year model, I've announced seveal times that information is available upon request by any shareholder.
- Any comment on the upcoming second Asher note?
As for Asher, let me express a few points that are probably not like most will think, but then most don't grasp what SMKY is anyway.
There are pros and cons to Asher-type financing; very few companies use Asher in a manner that is beneficial mainly because their operations aren't stable enough or not have the big upside.
IMO our free-trade float is very small relative to our up-side and from what I am learning and understanding from dealing with hedge funds and large investors, is that SMKY must have liquidity as it grows.
I cannot comment further on Asher, other than to say that I am comfortable either way the note gets paid come June 23, be it conversion or cash out.
- (As a little bit of follow up from answer 1) - "More shares in the market for SMKY increases market cap and sellable shares" - so where will these shares come from if the longs are holding?
Asher added about 2.4 million shares to our free-trade float.
- "SMKY must have liquidity as it grows." so how can this be done?
More shares in the market for SMKY increases market cap and sellable shares, as IMO there are lots of longs out there when financing is news.
- Your fins showed very low rev. does that mean sysco Iowa is not supporting the product?
Our disappointment with SYSCO came after three months when it was evident that their reps simply do not promote products, which is why our marketing plan contemplates our own dedicated sales force. SYSCO is moving consistently 5-8 cases weekly with slow growth.
- "There is a huge spread between our low market cap price/value and the EPS we forecast for our 3-year model out to investors, and this is the sole issue we're dealing with" How is this best solved then?
Instead of just showing a forecast model of sales growth via reps, merchandisers, etc., we're creating major relationships that can lead to virtually certain and rapid growth.
- How do you employ a "dedicated sales force" when it is painfully obvious that you don't have any money? How do you propose to raise the capital to employ a "dedicated sales force"?
Nothing of our business model is activated without financing, and investors don't invest without viewing and digesting management's vision of where the company can go with cash.