Drinks Americas Holdings, Ltd. (DKAM)

[FUNMAN]

Revenues in pinks sometimes hardly ever materialize.

Lots of DKAM promises and announcements of iconic brands over the years failed to yield increasing revenues.

That's probably because like fad fashions and trendy restaurants, they come and go. I did not care about them before, and do not look forward to scarce promotional dollars being diverted towards anything new, and away from what is becoming DKAM's bread & butter.

In 2009 I bought my first shares of DKAM anticipating the Rheingold roll-out. It took more than a year longer than I thought it would, but it's been happening and expanding since September 2010. The footprint of states continues to grow.

Two guys have basically sold a brand and product to distributors totaling in a preannounced revenue release a number in the $200,000 range. If modest quarter over quarter revenue continues to increase, then the first full 4 quarters of revenues with Rheingold sales on the books for all three months of those quarters, will total in the neighborhood of one million dollars.

If Rheingolds advantageous price point and promotions help to increase brand awareness and loyalty, a steadily increasing sales trend should project into the future.

Lots of pinks don't make money and see their stock trading above DKAM's sub penny price. Increasing revenues offer the promise of a turn around.

So watch the next few 10Q's. They will tell the story if DKAM has a bright future. If it's a good bet in 3 months, it will be a better better in 6 months.

For now, it's wait and see. Buy when the story is to your advantage. The next two 10Q's will establish the trend.