i posted yesterday on the ckxe and spea boards, trying to get feedback on what i uncovered. i was happy to see an mjet board created. here are some of my thoughts (please read the whole post):
monaco posted: "500,000 units a week. Antik Jeans sell for around $250.00 a pair (do the math)." read my comments after the following to find out why i think this is not relevant to mjet.
according to a website that won't hypertext for me (google "guez," "elvis," and "antik;" go to wwd.com website):
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October 7, 2004
Blue Concepts’ Fresh Ideas
A co-founder (Paul Guez) of the Sasson jeans brand is rolling out the Antik and Taverniti So Jeans lines for early spring and has acquired the worldwide master apparel license from Elvis Presley Enterprises Inc., tapping into the craze for vintage rocker T-shirts and merchandise. Guez saw Sasson rocket to success in the late Seventies, but lost control of the brand after a bankruptcy proceeding in the late Eighties.
Shipping in November, jeans from Antik wholesale for $79 to $160. Overall, the brand is expected to fetch $10 million to $15 million in sales its first year, Guez said.
The Elvis project offers the greatest potential, Guez said. It allows access to more than 40,000 images of the cultural icon, who died in 1977. Guez is projecting sales of $20 million to $30 million in its first year.
“All of my designers want to contribute and do something with Elvis,” Guez said.
He plans to launch two lines for fall 2005: One for the moderate market, targeting souvenir stores and mid-tier chains, with wholesale prices of roughly $20 to $30 — and another that embraces vintage looks with lots of denim and leather, wholesaling for beyond $50.
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what also interests me is the date of the article (it should be noted that i pared down the article to the parts i thought were most relevant): October 7, 2004. surely this date would not have been before sillerman and company finalized an agreement with the elvis enterprise; therefore, i have to imagine that the antik/elvis collaboration is fully endorsed and will be exploited by ckxe. sillerman is a master of marketing and commercial exploitation. why do you think you pay $250 for a concert ticket? why do you see budweiser paraphernalia everywhere at a concert?
monaco, you note that 500,000 units of azteca jeans are being produced each week; however, it should be realize that azteca is innovo group (inno.ob), and antik is now marine jet technology (mjet.ob). though owned and run by the guez family, they are two different companies but with similar products.
i'm wondering what the total amount in sales will be. the article i posted mentions two different products for sale: antik jeans, with an expected total of $10-15 million in sales, and elvis-themed items, with an expected total of $20-30 million in sales. unless i'm reading that wrong, each figure corresponds to a different source of revenue. without any other source of revenue, and if i interpreted correctly what guez said, he is expecting between $30-45 million in sales for the first year. also, there may be other revenue streams.
i'm not a financial guy, so i'm hoping that someone could help me in figuring out where this stock is going. with an anticipated base of $30-45 million in sales for the first year, 28 million outstanding shares (2/22/05 8k), and a current share price of .29, where do you see this stock going?
goosemeister@hotmail.com
