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New Analyst Coverage - Target $8.18
Link
On a roll.
$REED Up 5.25% New Coverage Target $8.18
Link
Also earnings out at 3:15 today.
Reed's Set for Good Quarter Tomorrow
Pre Earnings
"Gross Profits for the first nine months of 2013 increased 14% to $8.2 million, as compared to $7.1 million in the first nine months of 2012."
Q1 2013: $2,535,000
Q2 2013: $2,457,000
$8.2 - $2.535 - $2,457 = $3,208,000
Take out $2.9M for SGA.
$REED Will Post a Profit Tomorrow
Pre Earnings Just Released
"Gross Profits for the first nine months of 2013 increased 14% to $8.2 million, as compared to $7.1 million in the first nine months of 2012."
Q1 2013: $2,535,000
Q2 2013: $2,457,000
$8.2 - $2.535 - $2,457 = $3,208,000
Take out $2.9M for SGA and there you go.
$REED Up $.24 (4.15%)
REED Up 8.06% - New Analyst PT of $9.50
Currently trading at $5.63. 80% upside.
Link
Reed's Kombucha Now in Jewel-Osco (80-176 Stores)
Chicago has a GDP of $532 Billion and Whole Foods still doesn't carry the product in the city, great news. (as of 2010 (U.S. Department of Commerce. September 13, 2011.)
Six of Reed's Kombucha Flavors Are Featured in Jewell's Expanded Natural Cold-Set Stores Throughout Illinois, Indiana and Iowa, Starting With 80 Locations
$REED
WSJ Link
LOS ANGELES, CA--(Marketwired - Oct 15, 2013) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that Jewel-Osco has agreed to begin carrying six flavors of Reed's Culture Club Kombucha for immediate distribution into their stores throughout the Midwest.
Chris Reed, Founder and CEO of Reed's Inc., stated, "The authorization of Reed's Culture Club Kombucha in Jewel-Osco puts us on the map with one of the leading retailers in the greater Chicago area, and gives the brand a significant expansion boost in Indiana and Iowa as well. This is a tremendous opportunity to feature our unique Kombucha line in the expanded natural cold-sets of Jewel-Osco stores."
About Jewel-Osco
Established in 1899, Jewel-Osco, owned by New Albertsons, Inc., is becoming the favorite food and drug retailer in every market throughout the Chicagoland area. They operate 176 stores in Illinois, Indiana and Iowa, employing 30,000 associates while continuing to grow. Find more company information at JewelOsco.com and follow their social channels at Facebook.com/JewelOsco, Twitter.com/JewelOsco, and YouTube.com/JewelOsco.
From Wiki:
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 176 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana. Jewel-Osco and Jewel are currently wholly owned subsidiaries of Boise, Idaho-based Albertsons.
...
Jewel-Osco employs more than 45,000 associates. Its customer base gives it a 45 percent share of the grocery market in Chicago, trailed by the Safeway Inc.-owned Dominick's chain (ranking second at 15 percent). Consumers from 80 percent of all households in the Chicago metropolitan area visit a Jewel-Osco store at least once a month.
On January 10, 2013, Supervalu announced the sale of Jewel food stores to Cerberus Capital Management in a $3.3 billion deal. The deal closed on March 21, 2013.
CEO Reed Thanks Shareholders (image)
Link
Kombucha Now In Wegmans (81 stores)
Reed's Culture Club Kombucha Now Available in Wegmans Food Markets
Link
Reed's Top Four Kombucha Flavors Are Available in All 80+ Stores Throughout the Mid-Atlantic and Northeast Region
LOS ANGELES, CA-- (Oct 1, 2013) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that Wegmans Food Markets, one of the largest private companies in the U.S., has agreed to begin carrying four flavors of Reed's Culture Club Kombucha for immediate distribution into their stores.
Chris Reed, Founder and CEO of Reed's Inc., stated, "Our core brands have been in Wegmans for years. They are the perfect retailer for trendy food products like ours. Reed's Culture Club Kombucha is an excellent choice for the Wegmans consumer, and we are eager to be further enhancing our longstanding partnership with Wegmans. Reed's Culture Club Kombucha's expansion throughout the US continues to solidify our position as a new leader in this rapidly expanding category."
About Wegmans
Wegmans Food Markets, Inc. is an 81-store supermarket chain with stores in New York, Pennsylvania, New Jersey, Virginia, Maryland, and Massachusetts. The family-owned company, founded in 1916, is recognized as an industry leader and innovator. Wegmans has been named one of the '100 Best Companies to Work For' by FORTUNE magazine for 16 consecutive years. In 2013, Wegmans ranked #5 on the list. See more at www.wegmans.com
Wiki:
GT's Kombucha (#1 Kombucha Co.) Hit With a Class Action
Millennium Products Inc. produces GT's Kombucha and they're the #1 player in the kombucha market.
Reed's is the #2 kombucha company by sales, and they did that within 9 months.
MPI just got sued for locking their workers in a warehouse and "virtually placing them under guard."
Link
Article: Non-GMO Products Could Reach $264 Billion in U.S. Sales by 2017
Link
Packaged Facts: Non-GMO Products Could Reach $264 Billion in U.S. Sales by 2017
Ray Latif|September 18, 2013 3:18 pm
In the midst of growing consumer concerns about ingredients made from non-genetically modified organisms (GMO), a new report projects U.S. retail sales of non-GMO food and beverages to grow at a compound annual growth rate of 12.9 percent over the next five years, according to an article on FoodNavigator-USA.com. The report, published by market research firm Packaged Facts, expects demand for organic and natural foods to drive much of the growth and predicts that by 2017, non-GMO products could account for 30 percent of the total food and beverage market with a total value of $264 billion.
While Packaged Facts states that a high percentage of consumers support GMO labeling, under one-third currently purchase non-GMO products on a regular basis. To identify those consumers that are driving demand and growth of non-GMO foods and beverages, Packaged Facts conducted a June 2013 survey of 2,000 U.S. adults which found that urban consumers are more likely that their suburban and rural counterparts to buy non-GMO products. In particular, urban dwelling mothers in their mid-30s young children are most concerned about foods and beverages made with GMO ingredients. Additionally, the survey found that Hispanic and African-American consumers as well as those under the age of 45 are more concerned about GMO ingredients than other ethnic and age groups.
The report follows recent efforts by federal legislators to require mandatory labeling of GMO foods and ingredients. In April, Sen. Barbara Boxer (D-Calif.) and Rep. Peter DeFazio (D-Ore.) introduced a bill that would amend the Federal Food, Drug, and Cosmetic Act to “require that genetically engineered food and foods that contains genetically engineered ingredients be labeled accordingly.”
(Clink link to read full)
Reed's, Inc. Announces GMO-Free Labeling on All Their Products
Link
Reed's, Inc. Announces GMO-Free Labeling on All Their Products
New label confirms beverage maker’s commitment to using only the finest ingredients;
Joins growing movement of GMO-free foods in natural food industry
Reed’s, Inc. (NYSE MKT: REED) announced today that it will start labeling all of its products as GMO-free. While all of Reed’s products are currently non-GMO, the label changes will progressively appear over the course of the next year on Reed’s Ginger Brew, Virgil’s Root Beer and Reed’s Culture Club Kombucha.
“Since I started my company nearly 30 years ago, I have been committed to brewing our drinks using only the finest ingredients in their most basic form, like fresh ginger root,” said Chris Reed, founder and CEO of Reed’s.
“As a chemical engineer and a foodie, I have always been leery of engineers meddling with food. We have avoided GMOs in our products because we feel they have not been adequately researched. Our customers have been very vocal about GMO ingredients in their food.
GMO-free food products are a very fast growing trend in this country, and I can see the natural food industry moving to go completely GMO free in stores in the near future.”
Reed’s has verified its ingredients as non-GMO with all suppliers.
Reed's Sponsors 'Life is good' Festival - Exclusive Soft Drink
Link
- I thought this was a fluff PR when I read it, but I don't think so anymore. Life is Good Festival has 1,775,000 likes on Facebook. 91,822 people are currently discussing it on FB.
- Two-day tickets are $120. It's featuring Jack Johnson, The Roots, and Hall & Oates.
- Other partners include: Chipotle, Hallmark, Smuckers, Toyota, Cisco, Xfinity, TripAdvisor, Clif Bar, Fidelity, Magic Hat Beer, Honest Tea, Zico Water (owned by Coca-Cola), UPS, AAA, Reebok, TicketFly, and Uber.
- And the biggest part is that it's the exclusive soft-drink.
Reed's, Inc. to Be the Exclusive Soft Drink at the 2013 Life Is Good Festival
Reed's Ginger Brews, Virgil's Sodas and Reed's Culture Club Kombucha Are Hand-Picked by The Life Is Good Company to Be Served September 21st and 22nd at the Festival to Be Held at Prowse Farm in Canton, MA, Where 30,000+ Attendees Are Expected
LOS ANGELES, CA--(Marketwired - Sep 17, 2013) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that Reed's Ginger Brews, Virgil's Sodas and Reed's Culture Club Kombucha will be featured at the annual Life is good Festival to be held September 21st and 22nd at Prowse Farm in Canton, Massachusetts.
The Life is good Festival is a one-of-a-kind fundraiser held at Prowse Farm in Canton, MA. This two-day celebration of music and optimism, features three stages of nationally known musical talent, hands-on games, interactive arts activities, and the "Good Kids" zone -- home to the top acts in kids entertainment. The Life is good Festival will raise more than one million dollars to help kids in need.
Tyler Wakstein, Manager of Partnerships for The Life is good Company stated, "Our community is seeking an alternative healthy beverage, so we immediately sought out Reed's, Inc. for our 2013 festival. Reed's and Virgil's handcrafted sodas satisfy the criteria we were seeking; pure, natural, healthy ingredients is what our loyal consumer is seeking and we are able to offer it at this year's festival. We are truly excited to have Reed's as a partner this year."
Chris Reed, Founder and CEO of Reed's, Inc. commented, "The Life is good team is highly selective in their partnerships and we are thrilled to have been chosen to partner with them as an integral part of this year's festival. I have a great deal of respect for how Life is good has built not only a solid company, but also a tremendous charitable extension of that company to benefit children. We are looking forward to collaborating with the Life is good team for future events that ultimately help kids in need."
About The Life is good Company
The Life is good Company spreads the power of optimism and helps kids in need by donating 10 percent of its net profits to The Life is good Kids Foundation. The company with a Positive Purpose has raised over $9.5 million for kids in need to date, principally through Life is good products, the annual Life is good Festival, and community fundraising efforts. Please visit Lifeisgood.com for more details and spread optimism with #PositivePurpose. Life is good® is a registered trademark of The Life is good Company.
About The Life is good Kids Foundation
The Life is good Kids Foundation is an accredited 501(c)(3) nonprofit organization established by Life is good to raise money to help kids in need. The Life is good Kids Foundation directly funds the Life is good Playmakers program, which provides training and support to childcare professionals who use these tools to ensure that children grow up feeling safe, loved and joyful. Life is good donates 10 percent of its net profits to help kids in need through The Life is good Kids Foundation. For more information, visit Lifeisgood.com.
Motley Fool Article: Will Craft Soda Erupt Like Craft Beer?
Link
Presentation Highlights
-16th quarter of 20%+ growth
-we think like a craft brewer
-They took the Extra Ginger Brew and mixed it with B6 to create the Nausea line when CVS contacted them to create it.
-kombucha is growing about 70%
-Reed's is the #2 - running at about $5 million with the new launch
-GT is dominating the market, but he's not doing a lot of marketing
-K is in A&P, Fairway, Gracetis, TJ, WHF, Stop & Shop
-just maturing this would put the brands at $60-80 million
-fastest growing premium soda company, including: IBC, Stewards, Jones, IZZIE (still beating them even though they got bought by PEP)
-very focused on core competency
-Currently #4 player in premium bottle CSD category
-Private label is about 15% of business
-PL has given themselves their best relationships ever with the grocery industry
-PL was the reason the K was developed
-PL allowed Reed's to go to distributors/retailers as partners, not just suppliers
-starting to breakout of regular growth pattern of about 20% per quarter!
-we think we're a better POM Wonderful
-the soft drink industry is the only industry in America that does not have a premium category (hotel, car, ice cream)
-premium is usually 10% of most markets, sometimes 5%, but it started looking like tea, red bull, and vitamin water.
-They've pushed themselves to $40 million and they're about to turn the corner and begin to pull.
Kroger did $96.8 Billion in 2012
Reed's Announces Kombucha Now Available at Kroger Supermarkets!
Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that the The Kroger Company (NYSE: KR) chain of supermarkets has agreed to begin carrying four flavors of Reed's Culture Club Kombucha in approximately 1,000 of their supermarkets across the US. Some of the store banners that will begin carrying our Kombucha are, Kroger, Ralph's, Fred Meyer, Dillon's, Smith's and Fry's.
Chris Reed, Founder and CEO of Reed's Inc., stated, "We continue to grow our partnership with Kroger nationally. Kroger, the largest supermarket chain in the U.S., determined that consumer demand for Kombucha and probiotic beverages in the mainstream supermarket channel is expanding rapidly. We are excited by our Kombucha being authorized. In general, we are pleasantly surprised by the strong interest from the supermarket industry for our Kombucha and had not anticipated entering mainstream supermarkets so fast. We have quickly become the number two selling Kombucha company nationwide. We look forward to developing the Kombucha category with Kroger and driving sales."
About The Kroger Company
The Kroger Co. is one of the world's largest grocery retailers, with fiscal 2012 sales of $96.8 billion. Kroger's Family of Stores spans many states with store formats that include grocery and multi-department stores, discount, convenience stores and jewelry stores. We operate under nearly two dozen banners, all of which share the same belief in building strong local ties and brand loyalty with our customers. www.kroger.com
Bullish article on Motley Fool
http://beta.fool.com/wordsnotaction/2013/07/25/shark-and-minnows-a-look-at-three-soda-companies/41568/
Shark and Minnows: A Look At Three Soda Companies
By Delian Naydenov - July 25, 2013 | Tickers: KO, FIZZ, REED
Introduction
For the past few years the large soda companies, such as Coca-Cola (NYSE: KO), have been increasingly being blamed for their role in the obesity problem in the U.S. However, they continue to do ok due to their international operations and financial power. Increasingly, competition is arising from smaller companies such as National Beverage (NASDAQ: FIZZ) and Reed's (NYSEMKT: REED). The recent record high temperatures are likely to boost sales of the larger as well as the smaller soda players. In addition, the minnows, companies like Reed's, are launching innovative products at a faster pace than the sharks. It seems like the former companies are being able to avoid being swollen by their larger and more powerful rivals. Importantly, they are able to swim better against the currents of bad publicity continuing to swarm soda companies.
Valuation
As seen from the table below, Reed's has the highest growth rate but the lowest gross margin and it barely makes an operating profit, followed by National Beverage, and Coca-Cola. It is much easier to grow a company with annual sales of $30 million, in the case of Reed's, than a company with $48 billion in sales, in the case of Coca-Cola. Both National Beverage and Reed's are niche players due to their smaller sizes and implied flexibility.
However, of the two companies, only Reed's has a double digit growth rate. For example, only in the past year Reed's launched a new line of beverages (Culture Club Kombucha) and entered into a number of new distribution partnerships. It seems that both Coca-Cola and National Beverage are managed for profitability by sacrificing growth. This is evident by the volatility of their stocks as measured by beta. Reed's is the only company in the group that has beta over one signifying the company's effort to grow in the mature nonalcoholic beverage industry and the risks that come with it.
Competitive positions
Coca-Cola has over 500 nonalcoholic brands including such well-known names as Coca-Cola, Sprite, Fanta, Minute Maid, Dasani, Vitaminwater, and Powerade that are sold in over 200 countries. The reach and depth of Coca-Cola's brand is second to none. On the other hand, National Beverage has thirteen major brands while Reed's has about ten major brands. By having relatively fewer brands and focus on the U.S. market, National Beverage and Reed's are able to compete with Coca-Cola by offering niche products. National Beverage, with its Shasta soda brand is mainly targeting the rising Hispanic population and its Ritz drinks are primarily sold in southeastern U.S. Also, National Beverage is the only company offering energy drinks in the popular shot form with its Rip It brand.
National Beverage's Rip It Brand
Reed's is the company that has the widest variety of products compared to the number of brands. It offers ginger soda, root beer, cream soda, sparkling juices, ginger chews, ginger ice creams and, most recently, kombucha drinks. Importantly, Reed's makes its products with natural ingredients and sells them primarily in natural-food stores (such as Whole Foods Market, Trader Joe's, Earth Fare and Sprouts), gourmet restaurants, and delis.
Culture Club Kombucha is the latest drink Reed's has launched and its sales should become material part of the company's 2013 revenues. Kombucha, which Reed's launched in the second half of 2012, represented 7% of the case volume shipped by the company in the most recent quarter. Kombucha is a cultured drink known for its cleansing and energy properties and the variety that Reed's markets is made of tea. Importantly, kombucha is a low-calorie and low-sugar drink.
Recommendation
Coca-Cola, National Beverage and Reed's are three companies primarily marketing nonalcoholic beverages. Coca-Cola is the largest company, which is barely growing. In fact, its most recent quarterly sales declined by 3%. At the same time, Reed's most recent quarterly sales increased by 24% compared to the same period in 2012 while those of National Beverage rose by 1.5%. National Beverage offers the best balance between growth and profitability but its lack of natural products make it less likely to continue to grow. Coca-Cola is a value play as the company is likely to keep losing market share due to backlash against soda products and increasing polarity of coffee and tea drinks. However, Coca-Cola should be able to manage costs well due to its economies of scale.
Finally, Reed's is the riskiest but the fastest growing company. It has the smallest portfolio of brands but it is a niche player that offers natural drinks and is expanding into tea-based kombucha. If successful, the kombucha launch could be the catalyst for Reed's to be acquired by a larger company with larger resources and growth need.
Christopher Reed, Founder, CEO, Chairman, and President of Reed's
Conclusion
The companies discussed above will be helped by the recent record-high temperatures. Coca-Cola is a major company operating in the nonalcoholic beverage industry and it is the company, that usually benefits the most from weather swings. However, due to a secular move away from corn-syrup based soda, Coca-Cola is likely to continue to lose market share. On the other hand, Natonal Beverage offers brands that target specific demographics and/or areas and is an active player in the popular energy drink market with its Rip It products. And Reed's is the smallest but nimblest company, which should also benefit from its focus on natural products and the recent launch of Culture Club Kombucha. Reed's is the riskiest investment but it also offers the largest gain potential. Given the company's long history and a solid management team led by the company's founder and largest shareholder, Christopher Reed, investors should feel more confident about the company.
COO Foucaut Buys 9,871 shares @ $5.42
http://www.sec.gov/Archives/edgar/data/1140215/000114036113029175/0001140361-13-029175-index.htm
Nice, thank you. Please keep your opinions coming. You were right about that retest.
CFO buys 26,815 shares @ $5.83
SEC Form 4
Pretty positive ahead of the Q2 release in about 2 weeks...
Same, still has lots of room to grow. And technicals look good. Any opinion on the technicals?
54,900 block bought
Institutional investors loading up?
Any opinions about anything going on with $REED?
Very quiet here lately. I'd love for someone to tell me there opinion.
Good luck to all.
$5.70 - movin' higher
Reed's Culture Club Kombucha Now Available at Giant Eagle Stores
LOS ANGELES, CA--(Marketwired - Jul 9, 2013) - Reed's, Inc. (NYSE MKT: REED) maker of the top-selling sodas in natural food stores nationwide, announced today that Giant Eagle has authorized Reed's Culture Club Kombucha throughout their stores located in Pennsylvania, Ohio, West Virginia and Maryland.
Neal Cohane, Senior Vice President of Sales and Marketing stated, "Our partnership with Giant Eagle continues to expand. This new authorization establishes Reed's brand presence in an entirely new section of Giant Eagle stores; Reed's Culture Club Kombucha is now being merchandised in the produce section.
Our product is being distributed by two of Giant Eagle's functional beverage produce distributors, Alber & Leff and Midland Foods. We have been closely monitoring the performance of the first four skus authorized by Giant Eagle back in February. Early indicators demonstrate that the brand's performance has been strengthening each week. Due to such early success with the Reed's Culture Club Kombucha, Giant Eagle recently authorized the addition of two more of our newest flavors, bringing our total Kombucha presence to six skus."
About Giant Eagle
Giant Eagle Inc., is one of the nation's largest food retailers and distributors with approximately $9.3 billion in annual sales, which would make the company the 27th largest privately held company on Forbes magazine's largest private corporations list.
Giant Eagle is also a recent recipient of Grocery Headquarters' Retailer of the Year Award and the EPA's ENERGY STAR Retail Partner of the Year Award. Founded in 1931, Giant Eagle, Inc. has grown to be the number one supermarket retailer in the region with 231 supermarkets in addition to 172 fuel and convenience stores throughout western Pennsylvania, Ohio, north central West Virginia and Maryland.
Golden Cross
From yahoo message board:
"Golden Cross
The 50 day moving average crossed above the 100 day moving average on June 24th.
It was under since mid January and the stock showed it.
The 200 day is still about .70 under the 50 day, but it appears to slowly gaining."
I can't read charts that well, but is this true?
Up 7.8% in late day push
Any opinions on recent/future movement?
Reed's, Inc. Secures New Foodservice Private Label Partner
LOS ANGELES, CA--(Marketwired - Apr 23, 2013) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has secured a new agreement to produce a line of private label branded beverages for one of the largest foodservice distributors in the country.
Chris Reed, Founder and CEO of Reed's, Inc., commented, "Our unique production and flavor-crafting capabilities continue to attract interest from some of the largest supermarkets and foodservice corporations in the US. We are building some very exciting new relationships that we hope to leverage with our branded products. The margin dollars we gain from this new partnership will be reinvested into building more brand recognition for our Reed's, Virgil's and Reed's Culture Club Kombucha line of beverages."
Link
$5 million of revenue is currently derived from private label.
I'm not sure, but it's been going on for 10 years.
Good luck to all, I'm getting optimistic about this upcoming quarter.
I'll try to clarify.
For the "What's Selling - May" in which Reed's Culture Club Kombucha was listed, that is determined by:
Reed's Kombucha Listed in Whole Foods Magazine "What's Selling" - May
http://www.wholefoodsmagazine.com/whats-selling/whats-selling/whats-selling-may-2013
In the Midwest section from St. Mary's Nutritional Foods in St. Mary, OH.
Also look at the April issue in the Natural Choice Awards 2013. The top selling beverage in Whole Foods last year was GT's Kombucha.
Reed's only needs to scrape off a little market share to really impact the bottom line.
Good Reuter's Video of Chris Reed
Click
4 New Kombucha Flavors Launched
Pomegranate Ginger
Coconut Water Lime
Passion Mango
Cabernet Grape
LOS ANGELES, CA -- (Marketwire) -- 02/27/13 -- Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that they have added four new flavors to their new Reed's Culture Club Kombucha line. The flavors are Pomegranate Ginger, Passion Mango Ginger, Cabernet and Coconut Water Lime.
Chris Reed, Founder, Chairman and CEO of Reed's Inc. stated, "We continue to have a great response to our initial four flavors of Kombucha. Many requests are coming in for more Kombucha flavors from retailers around the country. I consider our first flavors inspired, with nouveau flavor combinations like Hibiscus Grapefruit Ginger Kombucha. We felt compelled to try and out do the first four flavors in this new round of flavor development. Our new Coconut Water Lime Kombucha is the first marriage of the very fast growing coconut water and kombucha beverage categories. Our new Cabernet Kombucha was inspired by our customers telling us they were using our Kombucha as a wine substitute. In many of our new accounts we are emerging as the clear number two brand of Kombucha."
Long-term Target Price = $15
Seeking Alpha Article
"Our estimates assume Reed's is successful at expanding kombucha production. We also think the company's traditional drinks and private label brands will continue growing at their current rate. Start-up costs are likely to exert a drag on income, though. And while the manufacturing expansion will raise volume we estimate the kombucha line will grow in fits and starts as the technology is fine tuned. We estimate 2013 income (fully taxed) will advance to $.10 a share on sales of $40 million.
Once the scaling up is complete results could skyrocket. In 2-3 years sales could reach $75-$100 million to produce earnings of $.55-$.75 a share. Cash flow will be stronger than that due to the availability of extensive tax loss carryforwards. Reed's carries a fairly high debt load, so downside risk could be high in the event the kombucha line fails to develop. Losses could be substantial if problems arise, potentially requiring dilutive financing. If things pan out worthwhile appreciation could be realized. Applying a P/E multiple of 20x to the midpoint of our projected earnings range suggests a target price of $15 a share (+165%). Reed's could obtain an even higher valuation as an acquisition candidate. A large buyer theoretically could enhance margins and expand distribution."
Thanks, and did you see...
http://dealbook.nytimes.com/2012/12/19/ice-said-in-talks-to-merge-with-nyse-euronext/
Slojab -- Could you explain the difference?
I understand that they're separate, but could you just break it down?
So far I've found:
Wiki:
The NYSE is operated by NYSE Euronext (NYSE: NYX), which was formed by the NYSE's 2007 merger with the fully electronic stock exchange Euronext. The NYSE trading floor is located at 11 Wall Street and is composed of four rooms used for the facilitation of trading.
Nyx.com:
NYSE Euronext (NYX), a leading global operator of financial markets and a provider of innovative trading technologies, is the only exchange operator in the Fortune 500. With exchanges in the US and Europe, NYSE Euronext equities marketplaces represent one-third of equities trading worldwide. NYSE Euronext is also one of the world’s leading futures and options trading venues, with four markets based in the US and Europe offering derivatives on commodities, FX, equities, bonds, interest rates, indices and swaps. Its commercial technology division, NYSE Technologies provides best-in-class transaction, data, and infrastructure management services and solutions.
Wiki:
NYSE Euronext, Inc. (NYSE: NYX) is a Euro-American multinational financial services corporation that operates multiple securities exchanges, most notably New York Stock Exchange, Euronext and NYSE Arca (formerly known as ArcaEx). NYSE merged with Archipelago Holdings on March 7, 2006,[2] forming NYSE Group, Inc. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange,[3] with its headquarters in Lower Manhattan, New York City, New York, United States.
Wiki:
The NYSE announced its plans to merge with Archipelago on April 21, 2005, in a deal intended to reorganize the NYSE as a publicly traded company. NYSE's governing board voted to merge with rival Archipelago on December 6, 2005, and become a for-profit, public company. It began trading under the name NYSE Group on March 8, 2006. A little over one year later, on April 4, 2007, the NYSE Group completed its merger with Euronext, the European combined stock market, thus forming the NYSE Euronext, the first transatlantic stock exchange.
Cheap at $5.14
market cap - $61.59 million
Sales from first 3 quarters: $22.258m
Sales from 2012, with 15% growth rate applied to Q4 ($7.28m in Q4 2011 -- $8.37m) = $30.628m
Add a 2x multiplier from sales = $61.256 (without any kombucha)
Add in potential kombucha sales of $5-15m in 2013, plus growth from branded, start-up expenses from kombucha predicted to decrease after this Q4, add in profitability, add in buy-out potential, give it a 2x multiplier...