How did that guarantee from Mexcor work out last quarter?
Rheingold was 73% of gross sales
"We launched the sale of Rheingold beer in the second quarter ended October 31, 2010, which sales accounted for over 73% of our total three month sales"
leaving 27% for the Mexcor spirits business. 27% of the $144k in gross sales is $39k. That's $13k/month.
And how will Rheingold go from -9% gross margin to +20%?
"Let's assume Rheingold goes from $100k in one quarter to $2 million 2 quarters later". Good luck with that assumption.
So if they can get beer margins from -9 to +20%, increase beer sales 20 fold over 2 quarters, have Mexcor sales more than triple, AND drop expenses by 35%, then they'll be at break even in 6 months. Good luck on that. And what will be the OS then, 500 million?
The only thing necessary for the triumph of evil is for good men to do nothing.
EDMUND BURKE (and others)