Observations re $MINE activity on the 28th and 29th.
For Investors and potential investors. This is a very long post, so if you want to know my observations, then please continue.
Disclosure:
I am a MINE long since 2010. I added shares during 2013 and 2014 at prices in the $0.0010-$0.0015 range and still owned a total of 4,500,000 shares before trading began on the 28th. I sold 480,000 shares on the 28th at $0.032-0.0345 to insure that my original investment was recovered at triple my total investment. I did not sell any shares during the last major retracement and I did sell any shares on the 29th. I have no plans to sell any of my remaining shares until such time as Minerco and Level 5 Beverage fully develop and execute their business plan.
Observations on CC:
1.) No R/S planned. No plan or necessity for R/S at the present time or in the near term. Might be possible at some point in the long term future in order for Minerco to qualify for up-listing to another exchange.
2.) Debt. Most convertible note holders have cooperated with debt restructure and most toxic debt cleared by payment or restructuring with exception of JMJ Financial. JMJ not cooperating, but Minerco working to find a solution to eliminate JMJ Financial. Minerco in a position to move forward with more conventional financing without the toxic convertible notes. I believe we will see additional positive news and information on Minerco’s debt and financing in the near future. I believe these announcements will come within the next 5-30 days.
3.) Product Development. Development of the Rise and Coffee Boost products are complete with test marketing done and initial production runs sold out. I have bought both products on Amazon twice and really like both products. Rise and Coffee Boost will soon be available within the next 60-90 days with the new formulations and flavors. Vitamin-Fizz on track to become the leading product line within the Level 5 Beverage group with multiple packaging options including cans, bottles and other broad packaging options. Vitamin-Fizz product range and packaging in Darin Ezra’s words will be the best that Power Brands has developed. Vitamin-Fizz has the potential to become a Billion Dollar business on it’s own. THC, “The Herbal Collection” is just what everyone assumed. Final negotiations and due diligence are nearing completion with a privately owned Denver based company with an already developed list of 10 products. I expect to hear news on the THC component of the Level 5 Beverage business within the next 30 days. Curves, Armour and Flex will probably be developed and marketed with specialty niche market partners.
4.) Product Rollout & Marketing. Vitamin-Fizz & Coffee Boost (all flavors) will be rolled out in the next 60-90 days in Southern California, Northern California, Arizona, Nevada and the Pacific Northwest. The Northeast US including New York and points North will follow. I believe that t these distribution arrangements for those regions are already in place. Power Brands already has national distributions arrangements with over 100,000 locations. I believe national distribution of Vitamin-Fizz and Coffee Boost will come very soon after the regional distribution is in place. Celebrity Endorsement negotiations are underway and I expect an agreement will be announced within 90 days. There was not much discussion of the RISE product during the conference call.
5.) Production & Revenues. Darin Ezra mentioned that 250,000 cans of Vitamin-Fizz has already been produced but that the initial focus would be on plastic bottles and he mentioned those production runs would be in the millions, and possibly in the 10’s of millions. With regional distribution, Revenues for Level 5 Beverage for 2014 are expected to be 7 figures (that range could be ($1,000,000 to $9,000,000). Revenues for 2015 are expected to be in 8 figures (that range could be ($10,000,000-$99,000,000). With national distribution, those numbers could increase exponentially.
6.) Challenges. The obvious challenge is financing to fund the major production, distribution and advertising for the initial major product rollout. From the discussions in the conference call, I believe this financing has been or is very close to being finalized. Once production and distribution is ongoing on a regular basis, cash flow from sales should be more than adequate to fund ongoing and expanded production, distribution and distribution.
Observations on Trading Activity on the 29th
1.) What surprised me the most was the timing of the sell-off which began at or slightly before the actual beginning of the conference call. It appeared to me to be an orchestrated effort to bring the price down by traders who were in Minerco for short term profit opportunities through day trading or shorting and was then followed by panic selling by shareholders trying to preserve gains or who were not clear on the potential that Minerco offers to long term shareholders.
2.) None of trading during the conference call seemed to reflect actual information discussed during the conference call and the price began to recover and stabilize after the call was over. Investors and traders realized there was an opportunity to add to their position or re-enter as a shareholder at a very attractive price.
3.) I believe the price attacks will continue until such time that Minerco releases additional significant information regarding the continued development and execution of the business plan including the following information.
a) Debt restructuring and financing
b) Vitamin-Fizz & Coffee Boost rollout on regional scale.
c) Completion of agreement with Denver company for THC product line
d) Revenue and profit results (QE 04/30/14 will not show much in revenue) Key results will be for the QE 07/31/14 which should show early results from the Vitamin-Fizz and Coffee Boost rollout.
e) National distribution for Vitamin-Fizz and Coffee Boost in over 100,000 locations.
My Conclusions:
I still believe Scott Vanis, John Powers, Darin Ezra and the “giants who are no longer in the shadows” will develop the Level 5 Beverage Company into a big time money making machine in the beverage industry. That means revenues, profits and shareholder value. I am still holding long and expect to continue to do so.
