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Before, with overhead over 4M a year and GP% ~ 23% posters on this board estimated that it would take 20M in annual sales for the company to break even. Now the picture is completely different. PK stated they expect GP% to go up and overhead not to exceed 1.5M annually. That means Drinks need less sales to break even. Gross gross gross estimates are like that:
X (Sales)
~30% GP x X = 1.5M
--------------
1.5 M Overhead
--------------
-0-
X (Sales) = $5M
I know it's extremely simplified and I think I'm missing something here (Interest expense?), but you can use the formula to figure out how much they need to sell annually to break even.
My major beef with PK was uncertainty in his actions, no real direction. We all knew he was issuing shares diluting us to death and that the sales were 15K, but nobody knew what he was doing on a positive side. He said the deal was in the making the last 6 months.
I am one of the disgruntled shareholders with 60% loss, but today I am excited the company has the plan to succeed. I will be more excited if we see increased sales as the result of this JV.
Will definitely add more next week.
Pretty much the way I heard it. Why would one say the deal is dead? This is simply not true.
Why would you interpret it as the deal is dead instead of PK meant he didn't know when Dr. Dre is planning his new album launch. Because the deal is directly tied to the start of the new album.
I guess it's "half full half empty glass" perspective. Everybody sees what they want to see.
With Dr. Dre deal dead, why would Drinks put his face on the front page of their website?? One would think it's a waste of time getting sign off of the Star if you're not planning to do any business with him.
I thought PK said something like I don't know where Dr. Dre stands now therefore I can't give you any details.
1. Overseas sales are DKAM's. Yes
2. He has been selling shares for cash. For the company to survive
3. Q2 sales WERE $15,000. Yes
4. Overhead cut to no more than $1,500,000/yr. Yes
5. Disposed of the KR contract. No. Changes are being negotiated. Any changes will be for the better
6. Being sued by Daub, who he now says was fired not "left to pursue". Missed that
7. ONE shipment to Mexcor. You got to listen closely to get that. I'm used listening to PK. GOING to be other shipments, he says.???
8. No product for Dr, Dre. PK just refused to talk about Dr. Dre. Uncertainty here
9. Will be paying Mexcor for warehouse space. $250,000-$300,000 per year. That's news to me. PK just made an example of lowering overhead, where it comes from. he said that Drinks used to pay 300K for warehouse. Now, they don't, as Mexcor has it's own warehouse.
10. Preparing right offering. Yes
11. The increase in O/S will not stop. He said he doesn't guarantee increase of O/S will stop. He didn't say it will not stop.
I'd be ecstatic if it's .15. Keep in mind the final outcome of all the JVs and agreements must be reflected in the financials. If PK reports 5M sales and reduced overhead for the Q ending April 31, 2010 then sky is the limit. But if it's another 500K-1M quarter... I don't want to think about it.
Looks like .025 held again. This proves to be a new support which is good.
Funny flippers. What have they expected? PK announcing sales of 20M for the first day after JV formed? LMAO. I'm still listening CC and I'm satisfied with the answers and forward guidance PK provided:
1) Issuance of stock was necessary
2) Debt reduced
3) Roughly 8000-10000 cases per quarter expected to be shipped.
4) Gross margin should go up to 40% from lower 20s!
5) Rheingold beer will be launched.
6) Updates on BAB coming soon.
Frankly, if everything goes well this IS an investment.
Rilo, make sure those teens over 18! it's illegal you know ;)
Nah, don't think so. CC is tomorrow. The biggest PR was made couple days ago.
I'll be happy if we finish today with 4M volume. Which is double of average volume and that means very nice accumulation is going on.
seconds ago somebody bought >300K. we're ready to take off.
Looks solid accumulation to me. I give it a week before we're in .05
I'm sorry sunzee, but you could have easily found answers on at least 4 of 6 questions if you did just a little bit of DD. Oh and "Can it happen again?" really cracked me up. Why don't you ask PK if the stock will be in double digits pennies by the end of this month? :)
I sure am. We all know the biggest problem the company had: inability to fill the orders. Demand was always there. That's why this JV is huge. It brings instant ability to produce, market, distribute.
Went to the local liquor store with my friend before heading to Manhattan for Valentine's Day hang-around with our gfs. Guess which vodka was bought? You've nailed it. Olifant. My friend could care less about DKAM and their products. But the price really stands out! $16.99 for 1L whereas 1L of Russian Standard (popular vodka among Russians in Brooklyn) is $23.99.
Now with Mexcor filling shelves where DKAM could not reach, products like Olifant will be introduced to more and more people.
Gotta look at the bigger picture than day traders chart. I admit I thought of never adding a share when the company was flirting with BK. But now, when the plan in place, I may add 100K more if the price stays at these levels for another week. We need more details of this JV and ultimately all this gotta be reflected in the financials.
If you're daytrader - should have sold yesterday. If you here for a long run and believe in the company - should add more on pullbacks. IMO
From LII: Looks like there is a gap in ASK between .029 and .05 Interesting action may unfold when we clear .029
Looks like support @ .025
On a serious note, I am really excited right now. This JV is what can jump start DKAM's cash flow that was non-existent (negative) for almost a year. We all prayed this New Year for Santa to save this company and looks like he brought us "The Present". Now company can distribute its core products with demand already in place (especially Olifant) and lower its overhead, which along with declining sales was my major reason for concern.
Of course I am humbled by my experience, which DKAM's investors isn't? I tend no longer make bold predictions, but if this JV works, this should not be anywhere near single digit pennies. All IMO.
Upcoming updates and CC should shed more light on their business strategy execution.
They need to fix that error. Otherwise no run tomorrow :) "Distrobution" lol
111% ugh...
Somebody just bought 0.5M
.05 tomorrow maybe on the open. I can't believe I will be in green soon...
15M!!! MAMMA MIA
11M almost. Man, we may hit 15M volume today!
Yep. IMO we won't see .05 today, but tomorrow is highly likely.
You gotta realize those who bought in at .015-.02 are very tempted to cash in on 100-70% gain. And it's normal.
right now .03 if it breaks it .05 is major resistance IMO
I was thinking about 10M day
I remember on the last run up to .04 there was no support like the one forming now:
BID
13:05 UBSS 50 0.0155
13:10 HDSN 50 0.0155 ?
12:54 ARCA 50 0.015 ?
12:34 VERT 50 0.0146 ?
Granted, these are some of those .01 bids, but it's encouraging. Hopefully with the positive news we see more than .04
Hello, everybody. Didn't post for a while. Looks like DKAM is taking baby steps in the right direction with at least having somewhat operational website. I hope they're still in business of selling drinks not websites though. Israel, Toronto, website on one hand, but enormous dilution on the other...
Still, added a little to bring my average down to .05 as I have little (left) to lose anyway. GLTA
I wonder in which quarter profit from the sale of this bottle will be recognized?
" DKAM is not going to go bankrupt"
It depends on the success of their Preferred Stock project. If they raise $30M, they still have to put up couple quarters of solid revenue growth for people to start believing. Because the last I checked Drinks Americas is in the business of selling drinks - not stock.
This. IMO this is big step in the direction of solving financial problems and putting the business on right tracks. Can we say "We saved!" ?
O/S 180,243,299 UN-FREAKING-BELEIVABLE. So much for "credit facilities now in place". Lie! Lie! Lie!
Are we looking at record volume? What was previous record?