Increasing debt? I say don't do it. DKAM is buried in debt.
I don't want them taking any actions to increase debt. I want them to execute their expanding Rheingold Beer rollout and increase revenues. They have 4 months to cement their distributor relationships before the summer season. That's when promotional dollars should wisely be used to pump up revenues.
Their quarterly revenues were primarily increased as a result of Rheingold commencing it's rollout for little more than 6 weeks.
If that distribution network generates "x" times 9, that's the basis of a very impressive initial 12 months. Add the additional distributors being brought online, and its reasonable that topping annual revenues of $2 million should be a slam dunk if the distributors continue to reorder throughout 2011.
Any talk of $6 million or more is deceiving "blue sky". Sales may be more than $2 million, but not by 100% - 200%. Even in 24 months those are very agressive projections.
DKAM needs to run the business so they can turn a profit on $2 million in revenues. There should be no reason they cannot do that given their current sales model.
Use the positive cash flow to reduce debt and strengthen the company's financial house.
That's how DKAM's per share price will increase. Build Rheingold revenues, and convert an increasing percentage of future sales into shareholder equity.
If they follow that path, DKAM will shortly end it's existence as a penny stock.
When that begins to happen, and only when measurably progress is made, should they begin to constructively dilute the outstanding shares. That's when they can fully eliminate debt altogether, and use proceeds to expand the brand.
I am doing my fair share of supporting the company by buying cases of Rheingold every week, sharing it with friends, and bringing it to tailgating events and parties. I hope every shareholder are doing things like that too.
