Rather than writing a separate message to CR, I'll just combine them here..... :)
They still offer THREE of the MSE products in Walgreen stores according to their online store, and those THREE I believe are ones that likely sell better. It is true, however, that few stores are likely selling those three, because a quick zip code search for my area found NONE of them available in stores near me (five locations).
I believe that CR may be right about product expirations, and it's quite possible that the term "recall" may encompass an event such as the one he mentioned about shipping back products to the warehouse due to expiration dates. Still, even if that's the case, then we're left with the question of what the hell went wrong and why they didn't sell as planned. It's also a huge financial burden to the company, too, that royalties are still owed.
Most investors probably want to put MSE in the rear view mirror and only focus on CBD, but let's get serious here for a minute. All of last year we looked at the sales figures and asked ourselves how it was freakin possible for more and more stores to be added to distribution left and right, whilst sales were remaining flat. It sounds to me that just as many stores were pulling their products (8K or so Walgreens) that were adding them. A part of the problem, at least with me, is that they've yet to actually break down their revenues by product line, essentially hiding true #s that would help clear things out and give investors an idea of what's selling vs what isn't being moved.
I'll admit that I had high hopes that 4th quarter revenues would be much higher, and especially 1st quarter as MSE has been promoted a bit, but now I'm doubting that any major increases will be seen unless another product comes out of Left field and surprises on the upside. For example.... we know for a fact that the MMG shakes are switching to another form, and that the initial order appears to be selling out. BR has also seen an increase in sales.
Going back to last year, we witnessed a stock that a 52 week high of around .32, and have watched it collapse as the company has failed to deliver a strong quarter. It's as simple as that. It's sad that it takes visiting a store and hearing from a conversation between two employees that the products have been pulled and are no longer available. Even more disturbing was to hear the word "recall" used. To be perfectly honest, I didn't just walk away disappointed, but kind of upset. While I was finally able to fill in some of the blanks about last year's low revenues for the first three quarters, I had to ask myself why the company was and still remains silent.
I plan to get to the bottom of this.
