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Frankly that pay is not much at all. $72k for a CEO position is on the low end. Plus another $30,000 of restricted common shares is really worth $0 at this point.
And the truth is not that they have no positive revenues. This YTD they have 1.3 million in revenues. Their GP is actually not bad either at about 40%. The G&A expenses are what sink the books. But I'm curious how much of those are real vs. on paper for the sake of the IRS.
The item on the 10-Q that is the most frightening is:
CASH AT END OF PERIOD $14,125
But that was at the end of September. Here in Mid-November we are still operating. This stock feels like the little engine that won't quit.
Still, if Tan has so much $ then I'd like to see him (as I've said before about others) do a Steve Jobs $1 salary and make his money in bonuses for performance and stock appreciation.
Did someone say China store? I thought that train was long gone and good riddance.
<sigh>the 8-K has a typo. Is nepal getting $5,000 or six thousand dollars per month? The $1,000 is not so important as the (cut+paste)-proofread=error
Note the difference in expectation with Tan vs. Rynning. With Rynning we got a 1000% run up and ended up with nothing from his time on board. Maybe with Tan, we'll get some lasting performance since the initial response has been deadpan.
Rule 16b-3 Transaction Codes
* A – Grant, award, or other acquisition
* D – Sale (or disposition) back to the issuer of the securities
* F – Payment of exercise price or tax liability by delivering or withholding securities
* I – Discretionary transaction, which is an order to the broker to execute the transaction at the best possible price
* M – Exercise of conversion of derivative security
Wikipedia is your friend.
Doesn't seem to fit. If he was a consultant, why call him CEO and set up the situation where you have another CEO leaving. And for all the talk of taking time to put together a solid strategy and execute, 2 months does not seem to fit.
Two theories:
-Nepal bought 500,000 shares because they needed good news to offset the terrible news of Rynning's departure or at least get people talking about the purchase instead of the failure to execute on yet another strategy.
-He actually thought the ellianos deal was going through and then the financing cratered and the deal collapsed. That deal was the reason for Rynning coming on. Without it, there is no play for him in the company.
I don't know what happens now.
I'm not terribly versed in TA of charts, but from the little I know I don't think the chart has quite setup yet. The RSI is still too high at this point. Needs to dip and then pop back above 30 as stochastics cross above 20 then we'll see technical upside. Just my reading of it.
I suppose there's a chance of that, but who's doing the scamming? The former executives are all but gone. Rynning has too long a reputation in the franchise and quickserve industry to risk it on being complicit in such a scam. That would leave Douthitt as the only beneficiary of said scam. And it appears he's been in long enough that we'd need to reach the $1.00 range for him to come out ahead. If that's the goal of the scam, I've got no problem selling out my shares at that level.
Last time we got down real low I was able to pick up a lot for a little at .015. Within days it was back up to .16.
People who are watching this now know the story and we should have news any day on the ellianos deal. That will either be bad and wipe it out or it will be good and send it skyrocketing again.
As i've said before, if they didn't think they could make it happen, they wouldn't have brought on the President of Ellianos to do the deal. So I'd say chances are good toward the news coming out as positive.
We should also have a 10-Q shortly and this should be the first one that doesn't have ludicrous "marketing", or "consulting" fees to useless IR firms. Not to sound like a pumper, but I'd get all you can at this level because, as has been pointed out, you can only go down a few cents from here. But the upside could very easily be 10x+ from this point.
I really do think these guys are for real. The plan to acquire Ellianos was obviously the driver behind bringing on Mick Rynning. If that was not something that could really happen, then it would make no sense for them to bring him on and it would make no sense for him to come on. I think this deal was in the works and now it's all a matter of waiting for paperwork.
But, the next true test right now of whether they are real is timely filing of the quarterly...
I think it's because of their attention to the strategy that they will be able to pull it off. I think a lot of due diligence is going on with the Ellianos purchase as well. Something that was obviously lacking in the China play. Instead of just rushing in and then backing out, this leadership is doing a thorough analysis and setting the company up to grow methodically and purposefully.
I'm excited. This is a great time to get in before this rockets up. 41% up today already...
Did everybody miss the news that they are buying a chain of coffee retailers with 8 current locations and profitability.
We aren't waiting for news so much as confirmation that the deal is a go. I agree that down here is the place to buy. Not because the board has too much to lose, but because the growth prospects with the current leadership's vision are finally good.
thanks for the info j. can you provide source for the revenue numbers? everything else seems to be public. However, from PRs the company has put out some of those 8 units are franchise units and that average sales per store are $320k which whould put total sales at $2.5M+
http://www.qsrmagazine.com/articles/ones_to_watch/107/ellianos-1.phtml
http://www.ellianos.com/uploads/Welcome%20Waycross%20Ellianos.pdf
EDIT: funny i looked at the same source as you but my unconcious ad filter ignored the lift out text in the box at the end of the article. thought it was a google ad and didn't even look at it. :D
Since Mick Rynning spent the immediate 18 months prior to coming to GWDC as the CEO of Ellianos, I can't imagine that there is much that will come up in due diligence that surprises him. In an alternate universe, Mick Rynning could still be working for his former bosses and just providing an exit for a stalled franchise business at the expense of GWDC. I doubt this, but since none of the Ellianos information is public it's hard to tell. One thing of note - Ellianos had 8 locations in 2007 when Rynning took over. Today they have 8 locations. Not sure how the GWDC relationship will spur additional growth of stores, but at least it will provide 8 additional outlets for GWDC coffee. Would like to see that be more like 80 or 800 but that will be in a few (or many) years... by then we who are buyers at these levels will be millionaires several times over.
Yeah, any downside today is because the market as a whole is in the dumps. But this is the news we have been waiting for. Long term, we are positioned now for great growth.
http://stockcharts.com/h-sc/ui?s=GWDC&p=D&b=5&g=0&id=p85794523605
there's one that will work for you.
the E is gone.
10Q finally released. Let's hope the 9/30 Q end is timely.
http://sec.gov/Archives/edgar/data/1208833/000105652008000523/gwdc10qsbjune302008finaltofi.htm
Honestly, that is great news. Everybody knows that you get the E when you are late. In the past, it has just popped up with no warning and no communication about it. The fact that it's been communicated in advance is a monumental step forward. The guidance that they will have the report ready by the 28th and the fact that they are telling us is also a huge improvement. This leadership finally seems to be world class and treating investors as if they had, you know, actually invested in the company. Now we just have to see if they will be able to clean up the mess that was handed to them. My intuition is that they will.
Looks like a lot of loading today. 30,000 shares at .13 (+30%) have coming in pretty steady over the last 15 minutes...
Looks like we might be getting a pattern of Tuesday Updates. Too early to tell as we've only had 2 but I, for one, would be happy to have management updating us each Tuesday with a PR to keep the communication and the momentum going. It's not as aggressive a communication plan as I had hoped for, but it's better than we've had for some time.
holding nicely at .10. 76000 of today's shares have exchanged at .10 and the other 60000 have been higher. The only exception is 2000 shares at .0999, which doesn't even count as below .10. I'm not pumping but this appears to be a good solid entry point. now the new exec team needs to release this week's news to push us back up and get the real momentum behind us.
and it looks like this pullback brought us back right to the top bollinger band. I think we are firming up for some good building next week. Let's hope the new execs keep the news rolling and get the 10Q out. We don't need to be GWDCE again...
to be expected considering that intraday prices have seen more than 1000% growth in the last week. Along with the notice of late filing yesterday - anybody who has got in during this run might be spooked by that notice while us long term followers have known that the filing was late... And the old crew said nothing about it. This should provide a good chance for people to get some shares at 20% off.
much appreciate your purchases. What will be nice to see is a chain of a couple dozen (to start) drive thru stores up and down the west coast creating demand for the daily drinker as well as the special orderer such as yourself. If Mick R leverages his experience with the southeast drive thru chain to make a west coast chain success, as well as funneling product into his former employers chain then we will see real demand unlike anything that PK ever obscurely referred to.
None of this is as flashy as a chain in China but has about 1000% better chance of success. Can't wait for the news from this weeks' board meetings discussing the future strategy.
yeah I've lurked here and at rb for about a year. Kept mostly quiet but have felt recently like I may be one of only a few left. Good to see more finding the hidden value in this company.
what a beautiful thing. Been some time since there have been profits to take.
Traded some communication with the company this morning. Sounds like the board is in meetings right now that should yield some more news very soon. I don't want to sound like a pumper but I think we are about to see pps at 2, 3 or more times where we are today. If you've been holding or accumulating at these levels I think there will be a nice payback.
Open at .10 :)
Ah, yeah. You are right that he's left the company worse off than it's leaving him. But thankfully we are in better hands now.
He could have gotten out a little lower, but he would have had to work hard to do so. If what cutty is saying is true, then PK will be recovering from GWDC for some time. Hope he wasn't living on the salary he was paid from the company. He'll need it to cover this move if indeed he ends up buying back in at .8-.10
we've broken the 10 day ema. the 200 ema is at .33... let's drive it up.
We are at .06
I think the resistance is more at 100% up in a day. I think .05 is something we'll see yet this week and probably more from there.
Management page of the company site updated to reflect the addition of Mick Rynning. I like the fact that he has grandkids and that JD brings "40 years" of experience as his announcement stated. It's helpful to hear that the guys running the company are not new to running a company or new to business. I don't think we need flashy young guys with "ideas" like China who made their money in real estate during the last 10 years (not a tough feat requiring vast amounts of business knowledge). Having people with more business experience than I have years on the planet is good to see. I think their approach will be more old-fashioned "make profit" business and that's what we need.
Today's PR sounds like it is written for shareholders and I like it. Recognizes that we as shareholders want to see value but keeps that in context of building a successful business that will bring us long term growth. AND promises to keep communication going to the shareholders. If they keep that promise (and really show the love in these first weeks) I think they will find a shareholder base that will do their promoting for them without feeling the need to give away the store to "promoters" who end up being more p&d'ers than legitimate promoters.
oddly, frankie is the moderator, so don't expect him to go away any time soon. For now, he can vent if he wants. Looks like he first started talking about this stock when it was over $2.00. If that is the case, he's likely lost 98% of the money he has in the company. But, so have I. So some of us piss and moan about it and others look for some way to salvage or just move on.
For me, I'm expecting JD Douthitt to step up to the plate and bring a little Texan sensibility to the company. I like that he's an investor in the company coming in and wasn't just handed a mess of shares for taking the job. He's got his own skin in the game and he's got to know that walking away or playing games like the previous boys did will result in total loss of investment.
JD, do us all a favor and continue with the tone from Friday's PR and keep us up to date on progress. Please, consider a $0 or $1 salary package for yourself since we investors have been paying out $10k per month per person to 3 people who evidently weren't performing. Please get the 10Q out be a little more strategic in the Marketing dollars. No more 2.3 million in marketing expense to generate 2.3 million in shares. That kind of thing has just been ridiculous.
Here's hoping for better days for GWDC.
may be the case, real.
Truthfully, though, the one concrete comment of JD Douthitt in the PR displays more of a confident action plan than anything ever reported by Paul K or his predecessors. I appreciate that he's not making excuses or glossing over everything with useless comments about all the great folks he met at some coffee show.
FFS guys it was like trade show of the month PRs. While I don't hold out HUGE hope for JD Douthitt, he can not do worse than previous leadership and sounds like maybe he might have the mindset to actually turn the company around.
I may be completely wrong in all these calculations, as I'm WAGuessing on some of it. Other information I'm pulling from company reports and other internet sites. But here goes:
In a company report Coffee Pacifica (at the time) indicated that a container contains 300 60KG bags or roughly 40,000 pounds.
http://sec.edgar-online.com/2004/03/12/0001056520-04-000011/Section2.asp
I can buy ethiopian green beans from a wholesaler at around $4/pound. But let's inflate that a little to be $6/pound as I've seen them as high as $7/pound and GWDC only goes for premium right?
http://ourcoffeebarn.com/wholesale/product_info.php?products_id=68
This is the wholesaler who has margin on top of the importer. But let's assume weak margins of 5% just for the sake of calculation. At $7 with 5% margin, the price paid to the importer is about $6.50.
From the 3/31/08 10Q (where is the July 10Q by the way, anyone notice?) GWDC is generating revenue at 25% margins over COGS (closer to 33% in previous Q, what happened?). So given $6.50 as a sale price, the COGS price $5.20/lb
So, taking these really WAG numbers:
$5.20*40,000lbs=$208,000 which produces a gross margin of $52,000.
So to answer my own question, I guess it's closer to $200k but generates $52k-$68k per container. So, real, you are right that coffee is not cheap.
Or the government of Papua New Guinea? Seriously, though, how much money do they need to buy the coffee? I don't recall seeing how much they need to bring in the ethiopian and jamaican to fill their orders. Anybody know what the number is they need? I don't mean for the whole of the next year, just to get a container delivered and to sell it.
Are we talking $20k or $200k?