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I disagree. I think you get one guy who hasnt done his homework, buying $20k of stock, then it sends the price up enough where the penny stock boards notice the up% and volume, and it becomes an idiot feeding frenzy. And like Bill said, more are then trapped in the Drinks experience.
No, I dont think it was.
If you're talking about buying millions of shares of DKAM to short the volatility of this one, youre risking your investment with a 95% chance of dilution/falling PPS.
And I'm sure that youre going to reply that you've made boatloads of cash on this one... so I guess I'll have to explain it a little simpler because greed can blind.
Lets suppose trading drinks is like playing blackjack.
You hit on a hard 20 and pulled an ace. Good for you!
The rest of us have noticed that the dealer is crooked, so we're pulling back our bets and trying to tell others not to sit at the table.
Ya dig?
Itrader-
Let's not get ahead of ourselves here... you may have jumped in at precisely the right moment to gain 100-150% on your investment, but saying this stock was ripe for the pickin' is WAY OFF. It had a week of .0014 ish numbers (which I jumped in on and made some cash), but its still at half the value it was only 4 weeks ago. So lets not say this turd is the greatest stock ever, because the next time you buy at .0013, this one could very easily slip down to .0010 and not recover... which would leave you with a 25% loss on millions of shares.
Don't get me wrong, Ive made money trading this one day to day, and Im glad that you have too, but the daily screaming from the rooftops on how awesome of a stock DKAM is, frankly, is getting old.
Im guessing the massive up volume is coming from a new investor that doesnt know the history here. Without some kind of non dilution agreement, the common stock here is worthless, IMO. And when I say worthless, I refer to value as a long stock. Generally, I only short stocks that I would hold long, that way if something goes haywire, all I have to do is sit on it... Im afraid this one no longer qualifies. So as soon as this one hits my next trade triggers... Im out.
Im sure PK will start the printing press as soon as he hears that the stock jumped on some positive pump and dump numbers...
Even if he does file them... theyll probably be late like all the other filings.
I think there is still support for Drinks out there, since they do have some quality products actually in the market. The problem is shutting down the share printing press. If they can take a breather from printing shares, they should get a little bounce in the price, even with their crappy 10Q numbers.
Looking back at previous 10Q's, I dont think the CFO is that worried about when the 5 days is up... sometimes its 5, 6 or even 7 days... Its probably on par with that homework assignment you know you have to do, but dont give a crap about.
As for the "stunning" report... Im pretty sure that there will be a few of us both stunned and stung... and Im considering filling that air bag with dogsh$t and lighting it on fire... doorbell ring to follow.
Youre spot on Bill...
The kind of "Lifestyle" that lets the CEO rake in $600k+ annually for a company losing millions a year... hence supporting his Lifestyle.
DKAM = "Lifestyle" penny stock
Plain and Simple
Ive called both him and PK repeatedly with questions. The only time I got PK on the phone, once he found out I was a shareholder, he had no time for me...
Drinks to declare bankruptcy??? Im willing to bet the plot will be thicker than that. Most likely, a new company will be formed and will conveniently "acquire" most of the voting shares in some ill written buyout scheme that allows the royalties to keep paying and a fancy new company to offer shares.... that will conveniently be diluted over 7-10 yrs in a very familiar fashion.
Anyone consider filing a grievance with the SEC regarding a share dilution scam?
Im guessing that the 10Q will be a little late... I'm sure it takes awhile to count all those shares. Which leads me to my next stock pick... whatever paper company is supplying the paper for the newly printed shares..... BUY BUY BUY!
Im pretty sure with the death spiral in full swing, there will be lots of shareholders dumping shares at the 10Q... plus all the new shares being dumped by the guys still willing to take shares for goods/services selling.
In retrospect, I shoulda bought a coastal vacation property in Japan... woulda been in better shape.
Yeah right... I currently have ~10% of common stock and cant get anyone from Drinks to return my calls. No confidence in them anymore. Im holding on to my stock until the next round of dilution makes me a .0000001% shareholder. These guys are not in business to look out for the shareholders. They are going to put every penny they get into paychecks for the last 6 guys working in that office.
Im more than a little worried about dilution, costs of sales, outstandind debt and litigation for Drinks right now.
On the bright side, their overhead looks like its finally decreasing, Rheingold is gaining ground, summer drinking trends are on their way and Drinks Board members seem to be buying up cheap shares being sold off.
With all that being said, I hold have to rate Drinks a HOLD until Q1 reports come out.
Im pretty sure all of this info is bogus. For some reason, it is difficult to get accurate data on DKAM's position numbers. From what I can gather by the SEC filings, Drinks has about 44.4 million common shares out, with another 30 million just issued through the Employee Program, and 165k in prefered C (which represent nearly ALL the voting power of the company). That last one worries me, because it screams "We dont want the shareholders involved for anything else than to give us money for our paper."
It looks like PK has about 28 million of those common shares, but I dont know where exactly the new 30 million are going... although my guess is that with all the debt and litigation, he's paying his lawyers with it... which would immediately liquidate it, hence the constant "sell" pressure currently in the market. But if thats true, why havent they filed with the SEC as a Beneficial Owner???
The other Board members look like they each have a few million shares, but nothing near PK's.
The only good indicator I can see is that PK DOES have so much stock... it tells me that he does still have an interest in making the company a success or lose all the value of his own stock. And even if he is paying himself handsomely, Im guessing hes doing the lion's share of the work to get Drinks into the black.
I have thrown alot of money into this company over the last couple years, and even if i dont get back to even, it would be nice to see a small company being built on the back of my capital. That would help ease the sting of cash burned in the fires of capitalism.
funman,
That all sounds great... but lets put your numbers to work. Rheingold grosses $250k for 4 consecutive quarters, but the "cost of sales" for it are inflated and will most likely eat up $700k over that period. How much is the annual salary of PK again...? $641k or something close? That makes it awfully hard to pay back that overhead debt that's still accruing interest. So how do you pay it down?, you ask. A stock offering of course!
My point isnt that Rheingold wont be at least a limited success. My point is that there are only about 3-6 people that will stand to profit from it's success. The captain undoubtedly will sacrifice the ship and crew to find the treasure in this case. And we gentlemen.... are not the captains.
So it looks like all of us older shareholders (2009 for me) have been wiped out. Even with the reverse split, the loses are staggering. Im curious if this company was setting itself up to fail in order to take incredible salaries for its executives. PK took over $600k in pref. C's (which are 165 times the voting power of common shares) this year in compensation. To me, it looks like Drinks is setting itself up for bankrupcy and doesnt care about the shareholders in the least. Im looking for good numbers march for a possible turnaround, but im cautious that management doesnt mind if the average investor gets completely wiped out by their actions. After gaining near total control of the voting shares, it looks like the management has stopped doing conference calls and are looking out for number 1.
Why should we throw more money at this company after shareholders have lost nearly $4 million in value already?
Corpkid,
Have you read all these SEC filings? All it proves is that drinks is great at spending money and has somehow talked it's attorney and board into taking stock (a whole lot of it I might add) as payment.
When Tom was CEO of Rheingold back in the early 2000's, they had a solid model and strategy to relaunch Rheingold. They werent looking for national brand loyalty and 35% market share. They wanted a 2% share of the regional market... and they had a profit margin of roughly 30%.... so far, Drinks looks like it has spent almost $1.8 million to sell $200,000 of product. And who owns all the 165:1 voting Pref C's???
Sounds to me like a spend and bail scheme... but that's just my opinion.
Not sure about DKAM. The historical data stinks of a stock dilution scam... especially when you look at the loses racked up on their books. All the press releases are bullish on Drinks pushing the brand, but I havent seen it in the stores yet. Plus, any taste test reviews online seem to put Rheingold near the bottom of the barrel. If it cant even compete with PBR as far as taste goes, all the advertising in the world wont help to sell it. I called PK several times and he wont return my calls. Anyone have any hard evidence that these guys are legit?
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