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Lurker, I am still trying to guestimate what the profit margin from the Matthews deal might actually be. It appears that Matthews will give EI a check every quarter...manufacturing product for EI and then buying it back "wholesale" at a higher price...but how much higher???
Start with the 2000 caskets...Say there is $500 profit margin in those...Does that sound about right? That would be $1m profit and would more than cover the annual cost of the Vatican Observatory license.
I assume urns will produce a smaller profit margin...say maybe $200 for grins. Would 250 Star Trek urns ($50k profit) cover the cost of that license?
Really hard to figure out how much positive cash flow this will actually generate after the licensing and other costs involved. I think if peeps could understand that this deal will put EI into the black for net profit the pps will explode...but "will" it result in net profit? What are your thoughts on this?
LABS says...thanks for the 107's...got any 109's!
The agreement with Matthews brings multi-million dollar revenue to EI in the future. Go ahead and wait for the 10Q's to "prove" the revenue if you want to. I understand why after all that has happened since 2006. But that new revenue could be six months out in a 10Q and it is already stated in B&W in the 8k for those fortunate enough to "know" about it.
Matthews sees value in the company...From the signed LOU...
i]"Eternal Image hereby grants to Matthews an exclusive right of first refusal to match the terms and conditions of any offer which Eternal Image may receive and be willing to accept from any third party to acquire substantially all of Eternal Image’s assets or capital stock"
Lurker...Thanks...I went back and re-read the 8k. Found out I had misread it the first time and thought Matthews was only going to buy back 25% of the product they produced. I was tripped up by how much Matthews would manufacture "annually" vs. what they agreed to purchase back "quarterly". No wonder I keep losing money in the penny market...LOL
OMG...Now I see it, Matthews is BUYING IT ALL BACK...millions of dollars worth of EI licensed product! This is indeed a game changer.
The specific number of product units that Matthews will manufacture and sell to the Company during a contract year is as follows:
a. 250 Star Trek Urns (which Product and design have been previously approved);
b. 720 Vatican Observatory Urns;
c. 200 Vatican Observatory bronze memorial pieces; and
d. 2,000 Vatican Observatory caskets.
The specific number of products that Matthews will repurchase from the Company during a contract year per quarter is:
a. 62 Star Trek Urns (plus an additional 2 units in the fourth quarter);
b. 180 Vatican Observatory Urns;
c. 50 Vatican Observatory bronze memorial pieces; and
d. 500 Vatican Observatory caskets.
Fridays always seem to be a down day...and we don't want this to heat up too fast...awww...why not!
NH...I am still cautiously optimistic...like you.
I see the cost of the Vatican license ($1m) annually. I see the negative cash flow we have had. I see that 3/4 of what Matthews manufactures EI will still have to sell. I know the 10K won't be pretty...but I think it will be the best sales we have seen in 3 years...sooo That's EI...the company. Candles will help. LOL
Now for ETNL...it has a very strong chart developing and does not have an IRP. The relationship with Matthews is "BIG" IMO. I think LFM is right and I am buying dips until MATW sends out a PR. I will make my long term decisions then. As I learned watching "cabinets"...hype does great things from sub penny levels. Not that this is all hype...it very well could save the company and take it to higher levels.
Are you thinking the Matthew's deal might not go through?
There were photos of a vatican casket design released from the previous license and it looked pretty darn good to me...Two colors...a black one and a white one.
Do we know who was making that version? Shouldn't take much for Matthews to create a new design.
Yes. This new agreement with Matthews silenced the peeps that said the company was a scam and is giving us a nice recovery from many months of silence.
AND the new agreement/product line hasn't been made public yet through a PR.
AND Matthews wants to be the one to PR it! Wow.
Too bad I had to cut my ETNL shares in half last year. But I sold all of those between .08 and .012.
Bought quite a few back at .004. Those are all green now...and getting greener!
Sellers won't even come down .0001 to meet LABS bid.
ETNL feeling bullish this week and LABS wants to keep it up...IMO
This is great...the banner ad on top of my L2 webpage is for Cubsworld.com and it shows pictures of a Cubs urn and Cubs casket.
IT'S A SIGN FROM ABOVE!!! Literally...LOL
Holding 01 on low volume...and chart is looking sweet!
Keep this support going into MATW PR and...OMG...Almost makes me forget that the Q & K are coming.
The refresh didn't work...had to close the page and go back.
Now I see the wall of 01's
Lurker...my L2 shows LABS sitting on top of ask at .021
Next is .05's
That can't be right...is this darn ihub L2 service working.
That's what I saw when I clicked the button at the bottom of the ihub post...
ih.advfn.com/p.php?pid=trades&symbol=ETNL
Shows 4m sold, 955k bought
Yep...ETNL holding strong with Sells 4 to 1...Liking that!
A person would have to be desperately foolish to dump ETNL shares before MATW launches this...Peeps that were trashing EI a month ago fell silent...buying..."Got ETNL?"
Did ya nibble in November the 003's? Sweet entry point for a long term investment!
Hey...nice day for ETNL. Too bad I had to work...would have loved to watch L2 for awhile.
What happened to the FUD crew?
A lot more enjoyable reading the ETNL board without so much FUD being posted every day. They are probably "quietly" loading up on shares now...LOL
Can't wait to see what happens when the product line is PR'd by Matthews. Hopefully we won't have to wait too much longer.
Go ETNL!
Great isn't it! I think you made momo so mad they took their ball and went home...talk about cutting off your nose to spite your face.
I am holding up hope for EI and like where ETNL is going. Love reading your posts...missed them while you were out taking care of business. ROTFLMAO
Unless my L2 is broken it looks like NITE owns this now. The other MM's are backed way off. LABS in and out...???
Gamechanger?...possibly...it is big step. How long have the Vatican negotiations been going on? Thought "gamechanger" negotiations "started in Jan 2009".
I have been leaning towards something involving their relationship with the industry. Not sure what it would be. But at least one major partner lent money for shares to the company around Jan 2009.
EI shoud "tell us" if this "Vatican licnese" is it since they have been saying a "gamechanger" is coming for a long time now.
I agree 2009 will be best year, and that helps satisfy patient longs.
But, if you want more long term investors...not a pack of flippers...they will want to see a consistent upward revenue trend for awhile. At least until we get up to multi-millions per year.
That is a fantastic way to expand the product line. After all...licensing is the concept...not just caskets, urns, markers!
If 4th quarter shows decent revenue increase...giddy up!
The CEO has decided he is through with the games being played by investors that manipulate the pps with every bit of news that comes out and has implemented new proceedures concerning information desimination..I for one applaud him for that..
I thought the company (or an insider) admitted to selling shares at .03? Seemed to be a lot of well timed PR's and conference calls back in those days...imo.
I think the reason (and you asked why) they would slow down growth (of product lines)...is because they are short on revenue. We were supposed to have all of these items out long ago (MLB, Star Trek)
It also explains to me why they tap the treasury from time to time. Which they have said all along in 2009 they would need to do. I'm not happy that we are where we are today, but I'm not calling it game over yet.
I'm not buying that branding was just a "novel idea" as some are now saying. Not when another company made a million in a year with a limited and less attractive collegiate line.
EI slowed down growth to avoid toxic funding and the dreaded R/S...They are working on market penetration...sounds like a reasonable approach when you are about out of money.
But we need to start seeing some 6 figure Q's and 7 figure K's pretty darn quick...game changer or not...LOC or not...new licenses or not.
You do realize that one of the car leases was prepaid and it is not $6k per month.
Hopefully sales will continue to grow over time. There is a company in Georgia that claimed $1m in annual sales for collegiate licensed caskets 10 years ago. Prices were (back then) $3000 to $5000. That's all this company sells and they are still in business. EI's collegiate line looks far better than theirs IMO.
EI does need to do more work on marketing their products IMO. Getting their urns in the new 2-year catalogue was a great stride. And center page (no less)!
I think the salaries of management are not unreasonable. The car leases were a bit much.
The big payoff they gave themselves in 2008...wasn't that all shares that they mostly still hold? The pps is going to have to go up a whole bunch before I give credibility to that arguement...and then they will have to sell to realize the gift.
I think the filings are due every February for major share holders. Last year LABS was buying like crazy and filed on the due date. It will be interesting to see who files this year and how many shares they have.
I agree. I have also felt that management "doesn't seem to care about the pps" right now. It has made me "wonder" if the game changer involves some sort of merger or aquisition by an industry partner. Perhaps a low pps makes that kind of deal easier.
I don't know how something like that would work or what it would mean to the shareholders.
I don't believe management wants to another R/S and they hold a lot of shares. You would think they would want the pps to go up.
I thought I read in the 10k or one of the 10Q's..."names" that were linked to Buzzbahn and to EA. I thought EA was the 3rd party that Buzzbahn was promoting for. Timing seems to link it to the uplist.
There was a steady stream of PR's in January 2009 and lots of anticipation. Perfect storm and I got rained on hard.
I'm not pleased with that relationship also. And I believe there was some connection between EA and NAR. And it was about that same date (Jan/Feb 2009) that EI management said no insiders were selling...but we later heard that JP sold a few days after the big promo. A month after that...JP is gone.
I also don't like that EI got their $200k short term loan last month from guess who...the same people. The one's who were given tens of millions of shares in the coversion of debt to equity at a value around .002 pps...less than a year ago. I blame that relationship for where we are today, more than the economy.
Oh, but I do still think the "concept" is good and the company has a "chance" to turn things around. I still hold shares.
Looks like EI has their competitors in Macon, Georgia re-thinking their product line. EI introduced their solid poplar, beautifully finished caskets 100 miles north in Lawrenceville, Georgia. No surprise EI would land a distributor in their main competitor's backyard. EI's product looks far superior to the competition who sells a casket painted to match the primary school color and puts just one plain looking logo under the lid. The competitor made a million dollars in 2002 with "this" stuff.
The competitor probably realizes they are about to get steamrolled...
http://www.collegiatememorials.net/wooden.html
Now, if the competitor was charging up to $4900 for their custom "painted" casket in 2002 how much more will they charge for a "solid wood" version in 2010? Do they even have the creative juices to produce something like this...
http://www.cremationurnsdirect.com/?page=caskets
When all they have to show after 8 years is something like this (you have to be freakin kidding me)...
http://www.collegiatememorials.net/airforce.html
If EI products start flowing I believe the company can turn this around. But something needs to happen real soon (in 2010) or they will run out of shares in the treasury to keep them going. I don't want to still be holding shares if that happens.
I'll believe the LOC when I see it. At least the TA is open so I can track the share use. I don't mind that EI is using some shares to keep the company moving forward vs. bankruptcy. But I remain concerned that Q to Q gross sales have not been climbing. I was hoping we would be at $300k per quarter by the end of 2009. Don't think we will see that just yet.
The products from Georgia don't look anywhere close to as good as the design that EI came up with. So let me ask you Gator, if you were looking for a collegiate casket and saw these two choices in the funeral home which would you pick?
Macon Georgia... http://www.collegiatememorials.net/airforce.html
Eternal Image: http://www.cremationurnsdirect.com/?page=caskets
Collegiate memorials was getting $3,250 to $4,900 for their products back in 2003 and claimed to have sold 250 of them in 2002 ($812k to $1.2m).
http://www.foxnews.com/story/0,2933,75528,00.html
If this story is true I think EI will do very well with their collegiate line once it becomes established in the marketplace.
It seems he pretty clearly stated this was just a hypothetical. One worth thinking about in my opinion. Don't you think it would be important to pin JD down on what the asset transfer will be.
If etc is going to start out debt free and income producing where else would they be getting the assets from?
At least this time the securities were issued at a pps that is significantly "Higher" than where we are today. That wasn't the case in Feb/Mar 2009.
Looks like a lot of debt got paid off.