The FUN part of this penny right now is revenues will show a jump of 150% - 200% in the next 10Q. With continued distribution expanding into a few more densely populated states, revenue will continue to naturally increase. There will also be a normal seasonal consumption uptick with the onset of summer in the following quarter. An announced promotional campaign is scheduled to start before April 1st; details are thin. Don't expect Clydesdale-like commercials. But expect something that helps support the brand.
Taken together, DKAM is likely to grow quarterly revenues from about 50K in the prior quarter to somewhere between 4 - 8 times that in the June 10Q. If distributor and retailer reorders continue, establishing a customer base, the product can gain a foothold to build upon from that point.
I have owned DKAM since 2009, was disappointed with the reverse split, the apparent continued dilution after the R/S, less than stellar management, and the longer than anticipated wait for Rheingold's roll-out to begin. Yet, the roll-out began impressively and continues. They did get that job done, and it was not easy. If it was, everyone would do it.
I have been buying Rheingold in CT, since it's initial September introduction, can personally attest that it is consistently restocked and available on the shelves every time I enter the stores, and that although it is not my preferred type of beer (I opt for heavier and hoppier flavor), Rheingold is comparable to PBR and other lighter type beers. I buy it to support the brand, wouldn't drink it if I thought it didn't taste good enough, wouldn't buy it if it wasn't priced as economically as it is, and would have sold the stock already if the beer I waited so long to come out was such a disappointment.
Another positive for the stock is, as expanding distribution continues, brand awarenes increases. More people are becoming aware of the stock, so there are more potential stock buyers out there.
Expenses are not likely to increase, other than the yet to be released consumer promotions and the variable expenses associated with increased production and distribution. We are all awaiting the results of an arbitration hearing that took place last month. If all remains the same, DKAM may be able to grow revenues and hopefully become profitable in the future.
Do your own DD. Read the last 10Q. It was very detailed.
