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Re: malt66 post# 858

Friday, 06/13/2008 7:11:57 AM

Friday, June 13, 2008 7:11:57 AM

Post# of 1334
I think they were only going to get a 5% cut from the coffee shop anyway. It still sounded good if one imagined a zillion coffee shops.

The remark about not being able to meet demand and buying up all the beans they can is a bit puzzling.

If demand is so good why not raise the price.

Unless... the chinese (coffee shop future starbuck model) people figured out that they could go around and buy their own beans from the various countries too. Unless it is easier/cheaper to just buy the commodity from gwdc. Which could mean that gwdc would need to sell cheap enough so that it wouldn't seem worthwhile for e.g. the chinese customer to try to do an end-run around them as middleman.

postive cash flow sounds good although $1 would technically still be positive cash flow. if their contacts are developed and infrastructure is in place, maybe they can still eak out a decent profit but it appears constrained by the pricing considerations I conjectured about above...

I suppose trying to buy up all the beans is the only desparate defense possible against losing their position in the food chain. The share price is probably getting hammered either directly or indirectly by dilution expectations as they try to raise cash.

Sure seems a far cry from all the glowing tout remarks of a few short months ago. The question is does it all actually amount to a hill of beans? <g>




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