DNA Brands Inc (DNAX)

[Ed the Trader]

"Basically this is a long hold then correct?"

No, it is not correct to characterize DNAX as a "long hold" either because we have no way to gauge when... or if... something worthwhile might happen with this stock.

Something real good might happen in five minutes. Something real good might happen in five years. Maybe something real good will never happen and we are all going to lose our money.

This is legalized gambling... a roll of the dice... a spin at the wheel... and lots of time, gambling on an OTC Pink results in loss of cash. That is especially true if some sort of price action does not result in a profit very fast. The longer one has to wait, the higher the probability that something will go horribly wrong.

However, unlike almost all OTC Pinks, DNA is not a scam company designed strictly to be a dilution machine that sells shares in a worthless company, and uses smoke and mirrors in PRs to try to raise the hopes of suckered investors to trick them into handing over their cash to buy more newly created junk shares in a "business" that never had any intent of producing a reliable profit.

Instead, DNA actually had good products in hundreds of retail stores in multiple states. I have personally verified that and personally purchased DNA Energy drinks at 10 different stores once upon a time. I still have four cans of stuff unopened here in my house.

In a worldwide taste competition, on two different occasions (two different years... I think it was 2010 and 2012), DNA won the award for the best tasting energy drink IN THE WORLD. I personally verified that by finding the web site for the drink competition, and found where DNA was awarded first place both times.

Before DNAX fell below $0.01/share, and automatically got downgraded to being an OTC Pink stock, it traded as an OTCBX stock, which is the middle class of OTC stocks.

This is as real of a business as OTC Pinks get... and more real than 99% of OTC Pink stocks ever get.

Unfortunately, DNA had two major problems:

1) Their former CEO committed industrial sabotage against the company and severely damaged the company's financial situation as a result.

2) DNA was not doing effective marketing and advertising of their products. I talked to several cashiers in the retail stores where DNA had been sold, and even though DNA was in wall coolers only 15 feet from the checkout counter, most of the cashiers who sold me cans of DNA had NO IDEA that their store carried DNA. If the store personnel have never heard of it, what are the chances that customers would know about it... or buy it? The simple answer is that there was a very small chance so the stuff sat for too long on the shelf in the cooler.

So, if DNA manages to find new funding, they also then have to have effective management and execute effective marketing and advertising. They also have be excellent at getting distribution deals. That had previously not been a problem but it appears that DNA burned many bridges when the products were pulled from store shelves last time. We will hope that there will be a next time to get new distribution deals and we hope that those attempts will be successful.

Just getting news of a new large scale partner or investor which would allow DNA to do another production run would sent the stock up easily ten fold. Getting news of the rest would put DNAX into pennies easily. Those estimates are not based on hype... it is just what would be realistic of what could happen... but on the other hand, maybe nothing will happen and maybe DNA sits at $0.0001/share indefinitely.

We just really have no credible information to gauge what will happen... and that is why this gambling, pure and simple.