Eco Building Products Inc. (fka ECOB)

[Ed the Trader]

"No offense..."

Polite discussion, debate and disagreement is never offensive. If we all thought exactly the same, what would be the point of spending time here on iHub? It is through our differences that we learn more from each other than we learn on our own. : )

"...there is not path be it winding ...direct...or via north pole that gets this company to profitability. Doing the full DD will make this abundantly clear as many here have watched this company and its financials for many years. This company is so far under water with debt and only supported through TOXIC funding there is only one path clear.... a monumental R/S that will destroy every 1st round shareholders holding . Dilution in this pig is out of control and when liquidity slows this one is toast. Please do all the DD... this whole "IF'S" "WHEN" Home depot comes along story has been way way over played now. The CEO has no assets and no secret sauce protection. He has yet to provide any positive measurable results. Hope's wishes and dreams IMO are horrible trading and investing strategies."

Sorry... I should have been more specific. When I talked of what was required to get to profitability, I was talking about profitability for the company, not the shareholders.

Toxic financing is generally paid by a corporation through issuance of stock, so although that is bad for shareholders, it has no bearing on the profitability of a corporation.

Likewise, although dilution and reverse splits are horrible for stockholders, they are irrelevant to a corporation's profitability.

Corporate profitability and shareholder profitability are two completely different things and generally, the only way that they are related at all is that corporations which turn a profit usually have higher stock prices due to increased demand for that stock.

If any corporation makes 1/15th of what they need to make to cover their operating expenses through selling their products in X number of retail stores, then it is management 101 that the corporation must multiply the number of retail stores by at least 15 to cover those operating expenses. Cover your operating expenses and make even one penny extra and your corporation is profitable. Again, this does very little to change the fortunes of stockholders in a highly diluted share structure, but it would be a first step in the right direction. It is pretty much guaranteed that a corporation which consistently is never able to turn a profit will have no choice but to make choices which are bad for shareholders.

"Convincing Home Depot??? WHAT? Home Depot doesn't get convinced by a supplier .... always has and always will be based on sell through and the health fiscal and services of a good supplier.... neither of those applies to ECOB>"

You may be right. The relationship with Home Depot may be so cut and dried that if a supplier's products do not generate X dollars of revenue in Y period of time, then that product is out of the store, end of discussion.

It may also be that Home Depot realizes that home runs do not necessarily happen immediately very often. It is often necessary to try various options to get to the sweet spot of where a product will sell well. I honestly have no idea of how much leeway Home Depot has in that regard, and I have no idea how competitive Eco wood products actually are. Fire proof and rot proof and termite proof wood sounds like a good thing to me... the sort of thing that I would personally consider to be worth extra cost. Does that mean that Eco products live up to their claims? I have no idea. Does that mean Eco products are competitive? I don't know although someone else here did not think so (not that such an opinion means anything without research to back up the opinion.). If Eco really thought their products were competitively superior, they should be scrambling to get some independent testing against competitors performed so they have a stronger marketing position. Again, management 101.