Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

Listen to this if you don't listen to anything else I say.

Somebody called in today and mentioned a company for most that Drinks could be, or is rumored to be acquiring. People, that just doesn't happen. He could have called in on the last call and said we were rumored to buy Svedka or Rain on this Pernod deal. Nope, did not happen. But today of all days, somebody calls in when ABIB is 10 days from having to have a suitor for Labatt USA selected to appease the DOJ.

Now, follow along with me. Patrick already told us that Anheuser Busch wanted to buy the Rheingold Brand and reintroduce it with the Rheingold Girls on a nationwide basis. They obviously have an open communication line with Drinks, and with Patrick Kenny. That negotiation process alone clearly proves the largest beer company in the world has something YOU have and they want. It clearly shows they recognize you as a player in their dominant space. That process alone to buy Rheingold makes the stock worth at least 50 cents that AB wants to do business with DKAM in some fashion.

Now, the sheer fact that Kenny did not just outright deny the Labatt rumor, just like the Kid Rock rumor tells me something is up. So, let's assume that it is for now. Once the DOJ determined this "divestiture" needed to take place within InBev, it was written about in the paper that the largest beverage deal in world history was contingent on the sale of this brand Labatt USA. It would also be for sale at fire sale prices the articles said to insure a deal would get done immediately. Now, given the fact the door was already opened to doing a deal with Anheuser Busch already, and it was stopped when the InBev acquisition of AB came about, that same door was still open to doing business with DKAM. InBev is in the process of selecting WHO THEY WANT TO BUY THE BRAND. This would not be an open process of accepting resumes persay. They would should and could contact the companies they want to see take over their brand who they felt would do it the most justice. You have to remember, ABIB DOES NOT WANT TO DO THIS AND WILL WANT TO BUY LABATT BACK IN THREE YEARS. So, you have to think anyone who is putting in bids was contacted by either AB or InBev to see if they are interested.

This says that the largest beer company in the world and now the second largest beverage company in the world may just have contacted Kenny to have him consider putting in a bid. That alone says these two major conglomerates recognize Kenny and Drinks as a player in their space. That alone says the company is valued at least at a dollar or more because at the same time they are considered, they are always an acquisition target as well. Now why do this? Because DKAM is a brand incubator. They are not entrenched in their huge core brands like these other beer specific companies are. They have no competitive products coming up against Labatt. They are the ONLY company going through a growth phase presently. The only one that has iconic representation. They are more than a logical candidate to take over this product.

To be rumored to have put in a bid or being a part of the final selection process says that they would have to have secured the financing to pull it off. Look at the details of the Labatt sale that is out there. It is like these others out there, an all cash deal. So, no financing. All cash. Did you notice today how Kenny virtually read verbatim his exact words from the Shareholder Letter about divesting core brands in this economy and "already proven access to venture capital." it is literally like a script. Like he is bound to what he can say. The same way he would be bound if he was in contractual negotiations.

But beyond that, a cash deal like this says you have to do some quick money things and do them quickly. Just to submit a bid in this economic environment where it was written by several that finding a buyer might be difficult because "cash is not readily available." If that was done to substantiate the caller's "rumor" that a bid was put in, it clearly shows our CEO went out from Nov. 14 until those bids were due and raised the CASH to make this sort of thing happen. That is testament to the company Drinks, the CEO, the team, and the company they are building. That alone if even a bid were accepted under these conditions, says DKAM stock is worth at least $2.00 a share that they can raise capital that quickly for major acquisitions.

Let's say it all comes down the pike and they do get the deal to buy Labatt USA. They would get more than $200 million a year in sales. From what I'm reading, InBev is selling the license for three years, so DKAM would not be producing beer, Labatt would still be making it during that time. Then they have to have a brewery selected. They pick up more than $30 million in cash flow. The sales and cash flow alone INSTANTLY overnight transforms the company into a midsized beverage company. It meets all the standards for Nasdaq or Amex listing barring the price. You have every beverage analyst out there wanting shares to initiate coverage. You have EXACTLY another FRPT or CKXE play where the company moves from OTC to Nasdaq or better. Straight over $5.00 they go with it. You pick up what I'm assuming is 400-600 distribution outlets that become your instant distribution outlets for Kid Rock beer and Rheingold, as well as Drinks' other products. That then gets expanded dramatically as Kid Rock beer goes nationwide. Then the leverage you create immediately allows you to buy the likes of a Wild Turkey also for sale. We'll keep the details of that one to ourselves for awhile. It certainly lends a lot of credibility to an authorized raise of 100 mil to 500 mil shares for warrants on the back end.

Do you still want to focus on last quarter's sales?

Oh, I might have forgot to mention one little thing.

Remember me talking about the trademarks? How one of them was worth $30 all by itself?

Think all you want about Kid Rock beer and the trademarks of Rock Red, White, and Blue.

Try this on for size.

Kenny filed the name "Blue" as a trademark and it is still Live. The only other company out there that can oppose it is Labatt USA. It is still Live as I said with no opposition.

You know, Labatt Blue and Blue Light?

Have A Merry Christmas!