Winning Brands Corporation (WNBD)

[doogdilinger]

The CEO of WNBD always provides impeccable insights in a very timely fashion to his core shareholders...which is VERY commendable as the majority of s/h's here would admit!

And the only reason WNBD's pps has eroded recently is due to there simply not being enough demand for shares in relation to the supply as everyone knows. But the reasons behind the supply vs demand dynamics in play are what has this board so testy at times over the past few weeks...as everyone has their own opinions measured against their own expectations and trading/investing methodologies right.

So I'll just address a few key dynamics in light of the recent pps erosion as follows:

WNBD's ongoing 504 funding needs equate to the 504 funders needing more liquidity in this stock when the retail buy demand subsides at higher levels...hence the pps erosion to find fresh retail buyers pps comfort levels...as WNBD obviously still needs to utilize the 504 financing vehicle to assist in them eventually attaining the self-sufficiency stage they seek.

So due to the 504 funders needing to find a pps level that attracts enough fresh retail buyers of WNBD's stock ie: liquidity...it unfortunately takes more shares at lower pps levels than it would take if retail players were more willing to accumulate WNBD stock at higher levels as most of you obviously know.

So the catch 22 in all of the above is figuring out a way to get much more liquidity into this stock and at much higher pps levels...so that the 504 funders can continue to fund WNBD's growth endeavors while not bloating the float...which in turn is a detriment to the valuation metrics retail players will apply to WNBD's stock and current growth juncture if they have to take the pps down to find buyers.

And the only 2 ways to increase the liquidity here while at the same time drive up the price of the stock are...via tangible results that attract the market masses organically or...via compensated awareness programs which bring the market masses to the stock.

And we all know that to date WNBD's liquidity has been largely fueled for 3 years now by mainly organic exposure/visibility attracting retailers to their ever-evolving growth story...and the CEO has remained steadfast in his conviction that he would only consider comprehensive paid awareness campaigns if and when WNBD's growth juncture merited it. But what we don't know is when that growth juncture actually arrives as the CEO hasn't specifically stated exactly when he expects that juncture to be reached.

So for now WNBD's liquidity continues to be fueled by whatever tangible results continue to get delivered...knowing that all the while WNBD continues to utilize the 504 the funders will need to find a pps level that attracts liquidity...otherwise they simply won't be able to fund ie: No retail buyers = no way to continue funding right!

So hopefully Eric chooses to discuss the recent pps erosion in the CC of Aug 11th and provides a comprehensive answer on whether or not he'd consider bringing in an awareness campaign that would fuel an increase in liquidity for a 30 day trial period perhaps...to see if the awareness campaign delivers not only an increase in liquidity but an increase in share price which would be an all round win-win-win for all sides affected ie:

1. The s/h's who want to see an ebbing of the 504 dilution not increase due to an eroding share price.

2. The 504 funders who need liquidity to continue funding WNBD.

3. The company who would have happier s/h's due to an ebbing of the float bloating & happier 504 funders due to the increase in liquidity in the stock.

WNBD's growth model to me is completely compelling and continues to expand at a steady pace!

WNBD's broadening sales team is top notch and highly motivated to continue penetrating the lucrative and expansive USA market.

WNBD's CEO has always done a heckuva job managing expectations while presenting details of the still forming big picture to his s/h's via memo's.

WNBD has delivered excellent progress over the past 3 years...but the current stage and pending next steps aren't getting much recognition from the market masses simply because only the core holders really know all the dynamics involved because they're the only ones receiving the detailed memo's the CEO willingly puts out on a regular basis to help manage their expectations.

So when pps erosion occurs and some of the natives get restless due to their expectation factors not being met in a timely enough fashion...it's not a bad thing to consider thinking outside the box and possibly providing follow up thoughts on exactly when the right time to bring in an awareness program may be as I think that would be a great subject for Eric to touch on in the upcoming CC...simply due to the current sub-penny share price level and amount of liquidity in this stock over the past few weeks being such a key factor in determining the rate of share leakage from the ongoing 504.

Not complaining about how Eric keeps his s/h's informed or how great a job WNBD's IR firm does. Simply referring to the benefits awareness programs bring in relation to a stocks liquidity and the win-win-win approach for the 3 key camps involved ie:

1. The WNBD s/h's

2. The 504 funders

3. WNBD the company

Enjoy the weekend all