Eastside Distilling Inc (EAST)

[FUNMAN]

ESDI is a peanut of a company, trying to ramp up revenues while burning through cash as they try to grow.

As in investor in another small liquor company I see all of the troubles that lie ahead for ESDI. I've lived through the growing pains "over-there" since 2009.

Most of them were not anticipated by me. Some of them evidently were not anticipated by them. It's FUNNY to realize what happened, when and why.

Just to reach breakeven the other company had to grow revenues to almost $100 million.

ESDI has a long way to go but they are trying to be creative.

ESDI insiders won't be taking out loan after loan. They won't be loaning a lot of personal money to the company.

They will keep doing equity raises and diluting shareholders. I wonder how many times and how much money they will raise.

It's perfectly reasonable as long as you don't see the insiders granting themselves lots of shares and seeing Form 4's divesting of them.

Unfortunately I see indications of them doing just that at ESDI. At the other company insiders never sell their shares and in many cases make open market buys.


https://www.sec.gov/Archives/edgar/data/1265078/000124915517000079/xslF345X03/primary_doc.xml


https://www.sec.gov/Archives/edgar/data/1534708/000124915517000078/xslF345X03/primary_doc.xml


https://www.sec.gov/Archives/edgar/data/1534708/000124915517000077/xslF345X03/primary_doc.xml



It's good to be able to compare companies for a better perspective.


Another liquor company was run by scammers. The insiders were also good salesmen and fooled a lot of people.

So I like what's happening at ESDI product-wise but I intend to be a prudent investor. No reason the get burnt this early.

I'll watch and wait a long time. Let them start to not only talk the talk, but walk the walk.

I want to watch what happens to the O/S and better understand why the PPS can be propped up over $4, with annual revenues fewer than $4 million and a net loss of almost $5 million.

ESDI's story is just beginning.