RJ,
Welcome. The following is a post of mine form way back in February. I hope it helps.
Well, I'm just back from Miami. Back to work and not all too happy about that! While in the Miami area, my wife and I called Howard and set up a visit to the CHDT and Capstone offices. Howard was very gracious and encouraged us to come for a visit.
We easily found the place in an upscale office complex in Deerfield Beach. I guess it was about an hour’s drive from Miami Beach. We were very pleasantly surprised to see the nice brass signs denoting the offices. We were right on time and Howard greeted us very enthusiastically. He spent a good deal of time with us and later we hooked up with Reid Goldstein. Stewart was on site but was very busy with vendor reps or someone. The office was generally quite abuzz – everyone seemed very busy and quite intent on what they were working on. A very nice display case upfront neatly housed book lights and STP Tools.
We talked for a long while as Howard pulled tools from display to explain certain specifics of the designs and packaging and to answer some of the many varied questions from my wife and I. By this time we are feeling very good about this. Even better than before! But, it gets better!
Regarding the STP Tool license, Clorox reviews, and makes recommendations on, every product and demands equal or better quality than what’s on the market in the same price slot. I mean, this right here is huge! Clorox is not settling for second rate!
The tools are all over the office and we handled and tested many. They are of high quality and have many unique features not found on competitors. Plus, Capstone’s manufacturers build the molds and packaging specifically for STP. Capstone is not simply slapping a label on some existing model. And believe me, it shows.
I started letting loose some more serious questions. When I asked Howard about the financing issue, a very warm confident smile came over his face and he said "there will be news of that very soon". He further explained in detail the desire (more of a personal requirement) for strictly conventional financing. We got a very good feeling from what and how he said this.
We began to discuss the purchase of Capstone and even more specifically, Stewart Wallach’s role now in CHDT/Capstone. I had been a little unclear as to how the relationship has evolved over time. Though not specifically stated, I think that Stewart became aware of Clorox’s solicitation for an STP licensee after the sale of Capstone, Stewart has the pull, connections, etc, and Capstone was the perfect vehicle. IMO, this is why Stewart became more deeply involved in CHDT, i.e. as CEO. A good thing and again, my opinion only.
Stewart has the pull - in attracting qualified staff and with business contacts. The staff he has assembled are all old successful business partners and aquaintenances like Reid Goldstein. I think that Reid was involved in the development of Super Glue! How powerful is that? Stewart is everything to the success of STP Tools. And, I’ll tell you, it doesn’t seem to be about the money with these guys. They already have money. It is about the game and about successfully developing a product and successfully marketing it. There is no scam here.
Reid spent quite a long time with us. He basically came out of retirement to work with Stewart on this STP project. And, he is about as excited a person I’ve ever met and happy as can be. I found it very interesting and comforting that he is a stickler when it comes to packaging. Packaging is everything. Some of the packaging for the STP tools is unique to say the least and will be huge in the market place.
Another thing that struck me very positively is the amount of competitor paraphernalia lying about for study and comparison. Advertising and packaging documents also lying about, and obviously being used and even referred to during conversation to make a point. These were from many of the hottest products and campaigns out there today. I got from this, that he/they take making STP better and they take the campaign very seriously.
Also, and I think very important, when I asked Reid and Howard what might "trip us up" in development and marketing, etc. of STP Tools - what could derail this train, we found it significant that financing was not mentioned. (IMO, a clear sign of confidence in their ability to obtain financing.) And, the various things that could trip us up, as described by the duo, are not very likely to happen, IMO.
We are so glad we took the time to take our DD to this next higher level. We have a very high confidence in CHDT. We will continue to invest. This message is getting long winded, though I’m sure that I forgot much and there is certainly more to tell. And, I will over the next while.
U
$ The most popular labor saving device is money $
$ The most popular labor saving device is money $
