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WOW! A PIPE SCAM? FUNNY! DKAM would have to have agreed to sell their shares privately to be a part of a PIPE scam, therefore they would be in on it if your theory was true. Simply put, DKAM is trading at the prices they are because the stock is not worth more than that and they are loosing money which is not an acceptable business model in today's economy.
When there EPS goes up above a negative number then people will take a look at them as an investment, until then they are just a risk or a gamble.
In the end of the day, the MANAGEMENT of DKAM is ultimately responsible for the performance of DKAM. They should take in account ALL factors that can effect the share price and adjust their plan accordingly.
ROX volume is ticking up.
FO is continuing an upward path. Great news!
STZ ends another week on a up motion. Good news for shareholders.
LIQR ends the week up 54.55%!!!
I have been reseaching DKAM for months. Can't post all that I dug up here because it will just be deleted by the moderators, especially ant bad news posts.
I am using the POSTED numbers from press releases to do that Beer valuation math. DKAM said 100,000 cases x 12 per case = 1,200,000 bottles.
Is it knocking DKAM to just try and figure out the math?
$60,000 in gross profit from this does not seem like a viable option here.
Anyone who says that they have "hired" 150+ people for the creation of this beer is misguided at best.
The Michigan Business Development Council says that no employment in the state is currentl a direct corrolation with the launch/creation of the brand at this time, but that they are glad to hear that the brand is in the planning stage.
I agree that ROX deserves a come back, Phillip Frost is a very smart guy. Hope they can pull it out!
Kid Rock Bad Ass Beer Math:
Let's say DKAM sells 100,000 cases x 12 (which would be a stretch in my opinion) = 1,200,000 bottles the first year.
If the retail of a 12 pack of higher end domestic beer retails at $14.00, so let's say the Kid Rock Beer is equal to that.
The Beer Institute (BeerInstitute.org) says 40.8% of retail price of beer is taxes, soon to be more under the current regime, so that leaves $0.69 per bottle left to split between DKAM, retailer, distributor, Michigan Brewery and Kid Rock.
If DKAM wholesales the product at $0.39 per bottle:
So this is a potential scenario of break down of what is left:
Brewery (glass, package, box, label, ect): $0.30
DKAM: $0.05
Kid Rock: $0.04
Distributor: $0.20
Retailer: $0.25
That leaves no consideration toward advertising, marketing or promotion the product.
$0.05 x 1,200,000 bottles = $60,000.00
Any thoughts about that?
When you have the US market underserved and under developed by DKAM it seems more prudent to focus on developing the US market then use it as a spring board into other countries.
Instead it seems that the US isn't getting any attention because DKAM has burned too many bridges with distributors here and to hope that shipments to Isreal will sustain the company is not the best strategy that I have seen in the alcohol business, and I watch them all.
My guess is that there are only a few posters to this board that are "allowed" to post negative comments. DKAM is not making the grade in my book, so by saying this you will likely not see my post for long because it will be deleted.
The US is the LARGEST Liquor Market in the WORLD! Why would DKAM rely on other countries to make it when it already has distribution here? Because their products are not selling well enough in the US!
$0.05 is my forward looking share price estimate for a reason.
FO off to a slow start this week.
STZ off to a slow start today.
Another good week for STZ.
Another good week for BF.A
Another good week for BF.B
BF.B is one of several publicly traded Liquor related stocks with boards here on iHub. Check them all out!
BF.B is one of several publicly traded Liquor related stocks with boards here on iHub. Check them all out!
Post your Brown-Forman stories here.
Post your Brown-Forman stories here.
Huge spread in the Bid-Ask for ROX.
Brown-Forman is a potential merger candidate with Bacardi, any thoughts?
Brown-Forman is a potential merger candidate with Bacardi, any thoughts?
DEO showing signs of life in the market!!!
Substantial Distribution Companies Prepare To Merge Into Liquor Group - Copied from Beverage News Network www.BevNews1.com
Jacksonville, FL - When you walk into the tall, cold grey granite and tinted glass clad corporate offices of Liquor Group you expect to be visiting an industry standard facility, much as you would find at major alcohol distribution company. I know, I have visited many of them in my years are as an alcohol beverage reporter. However, instead you are immediately surprised by the warm feeling engendered by the Liquor Group headquarters. The open areas at Liquor Group’s corporate offices are more like living rooms than meeting space, complete with a full bar, billiards, golf putting area and televisions.
Linda, a kind hearted New York-Jewish lady greets you with a smile and a joke then sends you back to meet the team. You then enter a large room with multiple groupings of living room sets, complete with TV’s tuned to cable news, and then you see a large old fashioned mahogany bar, not something you generally see in Corporate America. Further back as you get closer to the VP and President’s offices you must walk around a golf putting area and a billiards table, so I think to myself ‘this is my kind of office!’
So it was no surprise to me when the executives at Liquor Group Wholesale (OTCBB:LIQR) put out the word that they were looking to acquire distribution companies through stock purchase, that if this is how they are operating during this worldwide financial meltdown, I can imagine the tremendous response they received. “We are continuing to sift through the litany of proposals from state level distribution companies interested in merging into the Liquor Group network. We received some promising prospects, we have begun implementing several of them…” says Lowell Newman, VP of License States “…and we are still setting phone conferences from companies whom reached out to us as far back as last month.”
Intrigued by this operation, I decided to ask some basic questions to Mr. Newman about the company and I was surprised with what I found:
Q: Why would an established alcohol distributor want to become part of Liquor Group?
A: The Patent Pending Innovative Distribution Business Method utilized exclusively by Liquor Group which gained publicity when approved by the Tax & Trade Bureau in March of 2009 provides substantial operational and costs savings over traditional distribution, allowing us unlimited brand selection growth without carrying costs of traditional inventory, and quite frankly, other options for liquidity for the owners of mid sized distribution companies is thin at best. This is a radical difference from the normal operations of alcohol distribution companies, and we feel it is the difference that will allow Liquor Group to continue to excel in up or down markets.
Q. What triggered the decision to merge vs. organic growth?
A. Our organic growth has been astounding, in 2005 we only had 4 products, by 2006 we had 660, by 2007 we had 1250, and now we have more than 1700. Liquor Group is growing rapidly, and we are having fun while doing it, however, consolidation is all around the industry right now, as companies seek efficiencies of scale. Even 100 year old titans of the alcohol beverage industry such as Glaziers find themselves now merging with Southern Wine & Spirits, and other giants such as Republic gobbled up National Distributing, which is all just a part of the largest scale of consolidation ever seen in the business, spelling trouble for lesser distribution companies and brand portfolios trying to compete against them. However, we are interested in the acquisition of all types of distribution targets, large, mid and small.
Q. Why are brands, import portfolios and distilleries flocking to Liquor Group?
A. One basic principle in nature is part of the success of Liquor Group: SAFETY IN NUMBERS. Liquor Group represents so many brands in so many states that it provides safety for products that may not make the cut under their own horsepower. Our one price policy is also a strong selling point in the market, and research shows that overall the clients of Liquor Group approve of out pricing methodology and overall strategy. Our brand policy also dictates the taking of no favorites; we treat all brands fairly and provide each with the same opportunities to market. We represent small brand suppliers with only 1 SKU to large scale distilleries offering a hundred varieties of products. Last but not least, Liquor Group offers a viable and lasting alternative to the traditional distribution model that is not affected by the titans of the industry; therefore we can survive where others will eventually fail.
Q. What does the publicly traded portion of Liquor Group provide to your company in this strategy?
A. Liquor Group Wholesale (OTCBB:LIQR) is a vehicle created to take advantage of our plans for future growth of the overall Liquor Group operations. The company does not yet control even 10% of the overall Liquor Group privately held company asset base, however it is a key component in our unified strategy. We are the first and still the only publicly traded liquor distribution company with operations in the US, and we hope to follow the model set by Central European Distributing Company (NYSE:CEDC) in terms of shareholder value growth. Buy utilizing stock to acquire other distribution companies, we are in essence “buying them in” not “buying them out” which allows the owners of these companies to enjoy the upside potential of their stock shares in LIQR.
Q. Who has answered your call to tender for acquisition?
A. The Liquor industry though large in scale in dollars and economic impact, it is very small in numbers of top management personnel. When we put out the word that we were interested in purchasing distribution companies, it spread through the industry like wild fire. Several mid-market companies immediately came forward and some that are larger in their individual state than any individual Liquor Group state level operation have expressed interest and are at the discussion table. However, since we have not finalized any of the multiple initiatives that we have begun, it is too early for me to “let the cats out of the bag”.
And so my day was complete, as I stepped back on the airplane heading home to New York City I thought to myself…if only I was an alcohol beverage executive instead of an alcohol beverage reporter…then I sat down in my coach seat and ordered a stiff one on the rocks to take off the edge for the flight home. Go figure.
Huge volume on STZ today!
Large volume today on FO.
If you have any input on Castle Brands (ROX) stock please post it here!
ROX is one of several publicly traded Liquor related stocks with boards here.
Post your thoughts on Castle Brands (ROX) here!
Welcome the the ROX Board!
STZ on it's way up just as I thought!!!
FO on it's way up just as I thought!!!
Their lead product used to be Trump Vodka, but it seems that their best hope for survival long term is Willie Nelson's Old Whisky River and their new products in development with Kid Rock Beer and Dr. Dre Cognac.
The products are not less in price in the market than their compeditors however the celebrity edge is what is supposed to make up the difference.
Has anyone heard if STZ is looking for brand acquisitions?
Kid Rock and Fortune Brands
It looks like Fortune Brands is all over Kid Rock. I'm sure they are aware of his beer coming soon with Drinks. It makes me wonder if they'd like to own his beer one day.
http://press.jimbeam.com/press/theredstag
I can't speak for either company, but I am sur that there would be tension if I was the one out selling a product and the supplier could not deliver the sold goods.
DEO finishes up again this week. A nice uptrend in the Alc bev industry.
STZ continues a nice upward trend!