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Thursday, 10/02/2014 9:54:45 PM

Thursday, October 02, 2014 9:54:45 PM

Post# of 57850
Driller - The management team's March 31st 2014 company's update is what has increased Investor's expectations. Look ... I love their products and drink them almost every day, but management has exaggerated their revenue time frame by a long shot.

March 31 2014 -The quick ramp of our lemonade inspired us to leverage the distribution network with another less seasonal product that is experiencing a rapid rate of consumer adoption – coconut water. In February, we launched Natural Cabana® Coconut Water, selling out of our first shipment of 14,000 cases prior to the beverage’s formal debut at Natural Products Expo West, a leading tradeshow venue that we attended in March. As of today, I am pleased to report that total orders for our coconut water have reached 120,000 cases.

Now if they had 120,000 cases of the Coconut Water ordered back in March, don't you think a majority of the revenue should be recognized this quarter? Plus other ordered cases from the last 5-6 months?

If 2nd Qrt. 2014 case sales of the Lemonade were about 104,000 cases and Coconut Water cases were 21,000 cases, then they should report sales of at least 100,000 Cases of the Coconut Water (Remaining of the 125,000 cases ordered as of March 31 2014 as stated above) and lemonade case sales should be at least 200,000, based on managements statement of approx. 3 times case sales compared to 2nd Qrt. Based on this info, they should report a minimum of $3,000,000 in revenue for the 3rd Qrt, which should be a profitable Qrt. Also, hopefully they were able to collect on their $1,100,000 is accounts receivables from last Qrt.

I really believe that the stock would be performing much better if management didn't express such high expectations. They should have been realistic up until this point and over achieved each Qrt, because personally I think Pulse has done a very good job in a very short period of time and all with a very limited staff.

Hopefully it will be an excellent 3rd Quarter. Please note that the above figures are based on prior qrts and managements news releases. Any comments would be greatly appreciated.

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