Tonner One World Holdings Inc (TONR)

[Voices of Reason]

"consolidation", "steady", "opportunity to buy more" are just a few of the euphemisms to be used when the stock is tanking.

On another note regarding Corinda's Feb 23rd letter to the Company’s stockholders - she explained that the Company is forecasting sales projections for fiscal year 2015 exceeding $1.1 million.

It is presumed that the lion-share of this projection will come from the much touted, company saving, "Walmart announcement". Based on the results of 2014, and assuming another 2% year over year improvement on the 22% gross margin results for 2014, one could expect to see a gross margin of $1.1 million x 0.24 = $264k. for 2015. As the Company indicated, this would primarily be attributed to the seasonal sales in 4Q.

While making sales over $1 million is pretty optimistic for 2015, the gross margin would hardly cover their existing burn rate on G&A and overhead (at $4.2 million - the gross margin would cover about 23 days of G&A). The interest expense alone is over 6x this expected gross margin - this does not factor in the proportionate increase in costs necessary to ramp up to achieve the $1.1 million projection.

Bottom line is they cannot sell (dolls) their way out of this - with or without Tonner endorsements.