Don't expect any SWVC profits, this year, or...
Sales went up because costs went way up.
And 9 oversized stores sold only $14.9 Million in 365 days.
So, each store sold $4,536 each work day.
If each store is open 12 hours per day, that's $377 per hour.
Which is 1 sale of Tennis Shoes, for $95, every 15 minutes,
for the whole store, with 15 employees. I wonder what those
guys do all work day. Probably reading. It must be quieter
than a library in SWVC's stores.
And, the average store is 138,000 / 9 = 15,333 square feet.
That's 5-10 times bigger than an average 7-11 .
Now, lets subtract the unavoidable expenses per hour :
$190 = Inventory Cost [at 50% of selling price]
$225 = Employee Pay + Benefits [15 employees at $15 per hour]
That's $415 per hour, for just those 2 basic, unaviodables.
So, they're already losing $38 per hour,
for ever $377 they sell per hour, in each of their 9 stores.
With more stores, they will just lose more, and faster.
And, we did not even have to waste any more time subtracting :
Rent [they own no stores]
Utilities [worst climate, always huge needs for heat or A/C]
'Executive' Salaries + Expenses + Bonuses [and raises]
Interest Payments [at sub-prime loan rates]
Competition [if their market grows, Wal-Mart moves in]
etc's
But, there is a 'business plan' , that is sure to be
profitable, for a few shareholders. But, they are the
shareholders of the private 'businesses' that SWVC plans
to continue 'acquiring' , for cash, that is provided by
new cash from new buyers of new SWVC shares.
Guess who was the previous 'owner' of the privately-owned
'company' , that always lost money, that SWVC just 'acquired'.
And, guess who owns another 'company' , that SWVC plans to
'acquire' as soon as they can get enough cash, from newer
SWVC shareholders.
Averaging-down is profitable, for shorters, only.
