Winning Brands Corporation (WNBD)

[lbdave]

If you do some research into what has gone on with Walmart over the past year or so you will see that many major brand name items were removed from Walmart shelves. Walmart felt they would replace those items with their own brand name product, thus generating an increase in profit. The end result was the plan didn't work very well, and many of those products are now back on the shelves there. So, it's not out of the relm of possibility that WNBD could be back in Walmart sometime down the road, that is if they can't come to an agreement on the current situation before being removed completely.

I do agree it hurt the share price as well as company sales, and the 2Q revenues are evidence of that. I also believe the loss in revenue from Walmart will be picked up elsewhere, due to customer desire for the product. What we wittnessed in 2Q was Walmart not placing any re-orders, but they still had stock in warehouses to sell to consumers. Once that stock is depleted those consumers will purchase it elsewhere, thus creating larger or more frequent orders at surrounding retailers that carry Winning Colours. So those ill effects in revenue as a result of the Walmart problem may no be as evident going forward.

There sure has been alot of board chatter about the possibility of a R/S in the future. I'm not sure why that's a great concern at this point. Most companies do one because the A/S is maxed out with an already high O/S, or they are having problems raising capital with an extremely low share price. Neither of those two situations exist here. Over the past 5 years they have only issued 1.5 billion shares, and most of those were done within the first 2 years. At the current rate of dilution (avg. over the past 2 years) or a slight increase, they could continue for approx. 10 more years before maxing out the A/S. I'm certainly not saying they will do that, but I was just using it as an illistration to show there is no reason for a R/S as long as liquidity remains in the stock.