Hey TB, that PR is better than 90% of the news releases out here in Penny Land. The things to take from that which I feel are important are as follows:
1. Products will be marketed as 'high-end' items. This means margins will be great (as production is occurring in Mexico). The other implication is 'high-end' tends to be recession-proof.
2. Distribution channels are not exclusive...and expanding. I'm sure I don't need to explain here.
3. Orders for preliminary run are almost sold out....speaks to demand. COE previously informed one of our board members this was for 'first month's production run'
4. Business model = business incubator. Brilliant considering traditional lenders aren't lending. Speaks to COE's insights as he moves to 'fill a funding gap' created my the current state of the markets. He's also likely to get great terms as a result of tight lending environment.
This PR also couldn't have been timed better. It reaffirms what has been circulating as 'rumor' previously. Facts (transparency) was provided in the form of retail outlet identification. Though this last point may not have been the intention of the PR, the result was that support provided to pps during a critical time. Thankfully, it also allows many who got in much higher to get a better cost-average.
Interestingly, the point that seems to be getting lost on people is that, generally, you buy the rumor and sell the news. Though there was some selling into the news, we still ended higher and did not give up all the gains during what is normally a pullback day.
Personally, I know that history will repeat itself. It took a little over 5 trading days after the initial June PR for the news to sink into the markets. After it did, we saw 300% gains made within 3-4 days. Look for more buying in anticipation of news production is completed for initial run and stores have received their inventory.
If you think AVTI can produce 400% gains since end of June on Johnny Famous news alone, I can't imaging what's to come when other JV announcements are added to this mix. I'm holding for what should prove to be a 'fabulous' ride between now and the end of the year.
I'm considering myself to be one of the first to aid in the effort to 'lock down' these shares while enjoying the ride it will bring.
GLTA with the patience and foresight the CEO seems to have!!!
AI
