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I answered my own question after reading Franks press release again.
"The shipment includes over 500 boxes of luxury cigars with an average of 25 cigars per box. The average retail cost of each cigar is approximately $20USD making the retail value of this first shipment over $250,000USD."
He did not sell $250K worth of product, he is stating the retail value in an effort to make the deal look larger than it is.
What does that mean German Clients? People from Germany vacationing visiting the factory? Frank is very clever with words.
To get access to the best CEO in the tobacco industry, why else?
My thoughts are research Frank. I'm sure most here never even heard of Golden Dragon Holdings so start there, into CAGR (California Grapes) and now SANP. I have his business card somewhere too when he was trying put push wine under Cathay in FL before he got SANP going.
Golden Dragon - was pushing Burger King chips and Spanish wine in chine, probably a few other things I don't remember, and failed. Merged with California Grapes.
California Grapes - was pushing CA wine in China and Failed
SANP - rinse and repeat
Same old story, one man with no staff living so far away is going to blow it up in China.
Good luck to all. You can probably make some money on a flip though, he is good at PR's and running the price up a few times. Expect continued dilution though as you have been seeing.
Mr Nickel,
I don't disagree with you all I am saying is the market in China right now is home grown for the low end and Cuban for the higher end. Davidoff has distribution in China as do all the major players like Altadis and others.
Sure there could be a play for boutique brands like Tatuaje, Drew Estate, Pepin, AJ Fernandez and the list goes on. What I question is Franks ability to reach the masses. He is not "THE" authorized distributor for any brands in China, he is an ecommerce guy with no local inventory in country and a website that didn't work last I checked.
He claims to have sold cigars to the duty free shop and is claiming many more shipments with no sell through. Keep in mind, that supposed shipment was to a diplomatic duty free shop and I not only question the shipment but the sell through rate on what he supposedly shipped. He has zero sales history and is making large claims, that's not common on penny land. Why wait for the proof when we can talk about it.
Go back to CAGR when he was going to introduce California wine to China. In the end, assuming that was real, he represented some wineries nobody cares about in one small retail shop in the basement of an almost empty mall that nobody went to. This is the same story all over again with cigars. The market is X and if I get a small percentage we will explode while having no financial means, no personnel and no strategy to get there. With CAGR he pulled the same diplomatic and expat crap, wine tastings at hotels ... I'm telling you this is a rinse and repeat scam from old Frank.
Despite how good I believe CA wines are, they still do not sell in China. They migrate toward French and high end liquors like Cognac and Single Malt Scotch and even that has dropped off significantly. I'm sure Davidoff, who as I mentioned is already there, will do well. That crap Frank is trying to push, I doubt it especially when you look at the landed price. The culture is a large ship to turn around and Frank does not have the means to do it.
Don't belive me, that's fine. Don't do your DD on the China cigar market and claim Franks TAM is $5B first do it on Dominican and Honduran cigar market in China. Then do the DD on Frank and let me know.
Regarding that last statement, he sold Rocky Patels at an average of $20 each? You can buy the better Rocky retail for $12. Something doesn't sound right, will need to see the letter of credit from buyer to believe it.
If he's serious he needs to do some real DD on Frank, his business model, competition and products he's selling.
$35 a share might be the funniest post I've read, ever. In 3-5 years 5 billion shares will be authorized so what would the market cap be?
I assume this is all single tick flipper talk but if you really look into Frank and his business model you will discover it is going nowhere. The good news is he will give you another run or two, he needs the cash too and when the toxic debt rolls in they will need their cash.
Drove by NACSV today and the all the roll up doors were down and there was not one car in the parking lot. The past couple times at least a couple of the bay doors were open. Not sure what's up but they have not press released a new contract in a while.
I can't put my finger on one company Sullivan and company has touched that didn't have a lawsuit.
It is the play of 2016, Frank is playing with shareholders money.
Why would they discuss retail value? What relevance does that have to their bottom line? Just another slick Frank move trying to make the deal look larger than it is. If he's so legit he'll post an audited 10Q and we will see but don't count on anything audited.
Exactly
Once peeps realize Frank's strategy as a retailer they will realize the potential is not so large. Stop treating SANP as a wholesale distributor who will sell to every cigar shop. His business plan is an ecommerce store and he has no inventory in China to fill any orders.
Those other 5 business ideas are not revenue generating IMO.
What stores?
Saw that before, can you show proof of revenue being generated from all six sources?
Can you explain to me the strategy Frank has to get that 2% of sales? Is it the commerce store that wasn't working last time I looked? Does he have his own inventory in China to ship to those commerce customers or does he plan on going down to Puros Cigars in Delray Beach and buying as he needs them and shipping from the US?
I'm still amazed it's not back to 1 but the dilution isn't done yet either.
Good read about Sullivan, gets better as it goes on.
http://mobile.wnd.com/2003/03/17988/
Bid is down, ask below 6 and more shares on the ask than we've seen in the past weeks. Peeps getting fed up of waiting and taking some profits, hopefully.
You guys crack me up too. You go from the audit is almost done to of course there's a second audit that's normal. Six months later it will be of course it's taking so long, sullivan is making sure all is in order.
IIRC, GDSI claimed $12M sales first year of acquisition. That didn't happen.
Only reason price is holding is too many averaged in higher otherwise dumping would commence. We've already seen some opening bell frustration selling and it will continue.
Maybe it taking longer because Remington reconsidered and GDSI came up with a billion in cash, LOL
Thanks, don't know why it's not showing in the PR anymore, maybe because I'm viewing from an iPad.
We can argue about a lot of things but simple math says if he is hitting $6M in sales that's a shipment like this every week.
The other businesses will not generate any revenue.
Can someone post link to the shipping docs, I can't seem to find them. Thought they were with the PR.
Send me a link. I hope your not basing the RP product on review done by magazines the he advertises in. His decade is decent but that's it IMO
Regardless, I don't see a lot of sell through from diplomatic duty free, that's not all duty free but diplomatic visitors duty free. Unless I'm reading it wrong.
You are correct, the date is wrong. Original 8/7 10Q is quarter ending 6/30. New one dated 8/7 is quarter ending 9/30 so that date must be wrong.
You don't know the cigar market. Making private label cigars and selling them in China is a non starter. Selling volume in a diplomatic duty free store is not going to happen. Plus, if I was a US diplomat and went to China I would grab the Cuban cigar immediately that is not available in the US, not some Rocky Patel shit stick.
I see your point as an investor but I know the cigar market better than anyone here and I'm saying don't get you're hopes up. Plus, Frank is a POS.
Because Frank said so lol
So let me do some math
Approximately 500 boxes of cigars sold, mostly Rocky Patel, with an average RETAIL price in the US of $10 and 25 cigars per box gives us $130K in sales at US RETAIL levels. Then we have Frank buying from a dealer and not a distributor brings profit down to peanuts. Let's see an invoice from the master, he's proud of those shipping documents.
6-10 million in sales, lol, bagholders in the making. Don't think he'll stop until all 5M shares are sold either
I must have missed that PR, can you send link to the "Huge Contracts" and millions in revenue you speak of?
that is funny
every time you read "slap the ask" don't you wonder why those folks saying it aren't? This website exists not for the sharing of information but for the creation of bag holders.
It's the same guy involved but different companies. General American ... was formed in Delaware in 2014 where 1848 has been around longer and info can be found on them.
I looked them up as well a little while back and from what I can tell the website is www.genamcap.com whose domain was first registered 9/23/15 and there is not website up yet. I do find that suspicious.
So Frank is buying through a retailer not the factories. Wonder what his margins are and why he's using such a small dealer when somebody like Smoke Inn or Mike's probably gets better pricing.
Very true. Bag holders sitting at 3+ and no volume hoping to break even at best. If you can sell at 3, get out now because it's going back to 1.
How much revenue do you expect him to generate from "Cigar Academy"
I've been in and out of Frank's stocks for 4 or 5 years back before CAGR when it was Golden Dragon. Be assured he will tap every share available to him.
Even if he has legitimate intentions he does not have the staff or capital to play in China as he would make you believe.
It always was, the warnings about Frank have been mentioned many of times.
I understand the flip but this was never a long play.
I came to this board after being told about Frank's new venture from the board for his last scam and my only regret is not buying it at 1 knowing he would find a way drive the price up.
I did not say she disclosed details and would not discuss who initiated the inquiry. She was only asking questions related to press releases.
Again, don't believe any of it that's fine. Questions do not make anyone guilty just raises suspicion.
That was a general statement not that we ever spoke. Think what you want I know what I know.
I've been telling you the same about SEC looking into GDSI and from the conversation I had with the SEC attorney out if Miami it appears the issue is related to press releases.
I don't have written proof just what I know from conversation.
No need to reply or send me nasty PMs like in the past, just call it BS and move on.
Frank happened, he diluted you boys in the poor house. You'll see 1 before you see 6