Large geographic distribution in Rheingold's case was necessary, it's a confidence booster, and it's impressive that it is happening. Give them credit for making it happen.
If Rheingold was only rolled out in NY metro, a whole contingent here would be saying they aren't rolling out enough product. No one wants it. They can't sell it outside of their base where people knew the name from years ago.
Don't forget, most of the people buying Rheingold in the 1960's are dead. That's not the market I want to target. DKAM needs more sales volume and they are generating it. That's fantastic and exciting.
A whole group is saying DKAM is producing Rheingold at negative margins. I highly doubt the model they used did not take into account that at revenue "x", Rheingold surpasses it's own production and distribution breakeven point. At that point it will contribute to DKAM gross profits.
A whole group is saying the distributors are desperate and they need to add the product to their portfolio to compete. That they lost out on other brands.
So what! It's to DKAM's advantage, because if the distributors thought Rheingold was a dog, they would not bother carrying it. If there were no distributors Rheingold would be dead in the water.
Lining up the distributors is what took so long, and consequently why I was so disappointed that when I first bought the stock in 2009, I thought the roll out would happen much sooner. If I knew what was happening I would have waited. I rode it all the way down through a reverse split. That said, I am in the hole looking up, but I am finally drinking the beer, and hope to ride the rising tide and float out of the hole.
Also, every distributor of every product, not just beer, has to be concerned that they aren't pushing failures. When they do, it makes them look bad, and makes it much harder for them to push "the next product", whatever that may be. Strategically, they have to care.
High expenses; no disagreement from me. They are unwarranted.
Dilution; we know it will happen. To what degree it is necessary and curtailed remains to be seen in the next 10Q. But some here are hanging their hat on that as the reason DKAM's price is under such pressure, and such a bad investment.
I say that DKAM is under so much pressure because they have lost so much money for years, been so bad at other product introductions, and right now do not present a compelling investment opportunity other than possibly in the future success of Rheingold. So why shouldn't a conservative investor just wait a few weeks for the next 10Q? They should.
But some aren't conservative, they're traders just looking to make some money on a bounce. That's why buying is going on. People who accepted shares for services instead of cash are probably selling them because they need the money. Traders are trying to buy as low as they can, and are hoping for some good revenue news to bounce demand and the stock upwards.
Daily / hourly watching the stock bounce; only traders care. Longs are hopping a bottom has finally been reached and revenues will encourage more people into actively trading DKAM. Increasing revenues may have put in the bottom. The .004 I thought would be reached last Friday, the day before Super Bowl weekend did not happen.
Increased volume increases interest and brings in more traders. For every share sold, there is a buyer of that share. After the 10Q comes out we will have a much better handle of what a share's value should be.
Don't like management; so what neither do I at the moment, but at the moment they are riding a wave. Getting up on the wave is the hardest part. I'll clap long and hard the longer they ride the wave, and if they turn an annual loser into a winner, I will applaud them. They will have risen to the same status as the analogy I have used in the past about the N.O. Saints; losers until they became winners.
AI
