From blog at www.microstockprofit.com earlier this week.
Another Day, Another Deal
Challenger Powerboats Inc. (OTCBB: CPWB) Announces Another 5 Contracts With Distributors
More dollars, more distribution channels, that's the story at Challenger Powerboats Inc. (OTCBB: CPWB) these days. The situation gets more and more appealing as we go. Since its well-documented restructuring just a few short months ago, CPWB has built the brand recognition, dealer network, order log, and boating offering that many long-time market players have yet to establish.
Challenger Gaining Territory
News earlier this week highlighted recent corporate growth, and stated that Challenger has signed on five new dealers located in the West Coast, Midwest, Southeast and Mid-Atlantic regions. These agreements should soon bear fruit in a big way since these dealers will only sell CPWB's high-end, 'go fast' offshore racing series and family performance series lines. This agreement, noted by CPWB as a direct result of the exhibitions at the Ft. Lauderdale, Los Angeles and Miami Boat Show, is one that would simply not have existed a few months back when Challenger had NO sales/marketing strategy in place.
What a Difference a Few Months Can Make
After taking a gander at Challenger's most recent news it occurred to me that CPWB's new contract for approximately $330,000 exceeds the company's prior two quarters of revenues COMBINED! While the company brought in $0 and $70,000 worth of revenues for the 3-month periods ending 9/30/06 & 6/30/06 respectively, Challenger's recent agreement dwarves recent sales by moving only 3 units, two of Challenger's go fast DDC-33s and one Family Performance Series (FPS).
As mentioned in prior editions, recent profiling in industry periodicals has established Challenger's boats as a legitimate industry competitor that goes head-to-head with leaders such as Fountain Powerboat and Brunswick Corporation. Commenting on the profiles, CEO Laurie Philips stated "Clearly the recent profiles of our performance results in Powerboat and Hot Boat magazines are beginning to have a quantifiable impact on sales. We believe that the value proposition offered by our Challenger high performance go fast DDC and FPS series is second to none in terms of quality, performance and pricing, and look forward to widening the distribution of these product lines"
Big Toys for Big Money
Although a number of boating industry experts are optimistic at best that overall boating industry sales will remain flat in '07, here is some food for thought:
#1 the industry remained flat or grew in '05 and '06, depending on what segment of the boating market you are interested in. The market also exhibited strict resistance to unfavorable market conditions brought on by rising inflation rates, high oil prices and unforeseeable natural disasters which crippled key regions vital to boating industry growth.
#2 the U.S. population of High Net-Worth Individuals, one of CPWB's most vital demographics, continues to gain steam. Exemplifying this point, the 10th Anniversary Edition of the World Wealth Report ("The Report"), released in June by Merrill Lynch (NYSE: MER) and Capgemini reveals that the number of HNWIs grew by 6.5 percent over 2004, to 8.7 million, and that the number of Ultra-HNWIs, those who have financial assets of more than U.S. $30 million grew by 10.2 percent, to 85,400 in 2005.
As boating season approaches, it is worthwhile to spend a half hour looking into Challenger Powerboats Inc. (OTCBB: CPWB), priced at $.11. This is in direct competition with stocks in the $3.00 to $40.00 range. The reward is worth the effort.
