Drinks Americas Holdings, Ltd. (DKAM)

[FUNMAN]

If Mexcor was doing great, DKAM would constantly be putting out PR's about their successes penetrating new markets.

Any royalties Mexcor contributes to the bottom line will be gravy. I don't have time this morning to research the deal again, but isn't there a $50,000 monthly cap in place?

As for the Lions Brewery running out of manufacturing capacity, pleeeaaassseee. First of all, if they were so close to capacity and then Rheingold comes along and during the ramp-up maxes out Lions, wouldn't that be two companies making incredibly boneheaded moves in tandem? Blame DKAM all you want for bad decisions, but if Lions was so successful that when they were so close to max capacity before taking on Rheingold, you're saying smart people who built a business to near max capacity made a hugely stupid business decision by taking on Rheingold without having their own expansion plans in place. Lions's made all the right moves until that point to build their business and then ... boom. I don't think so.

I think what is more logical is that Rheingold's volume is increasing, hence the confidence by DKAM and Lions to introduce the more expensive bottles to use for packaging and shipping. Increased brewing volume probably means DKAM may (or already has) reached a breakpoint whereby brewing costs are reduced by a degree.

Furthering that thought is the pending introduction of kegs (on top of the already introduced bottles) for the coming warm weather season. Bars prefer both of them. The preference to serve "on tap" or a bottle Vs a can is measurable in commercial establishments. In kegs they buy more volume at a lower price and they require less behind the bar cooling space, and they are over all easier to handle.

Both moves are a very positive signs of the growing volume, and the commitment by DKAM and Lions.

If dilution is happening because Lions is accepting stock in place of cash, that's fine with me. That means the cash coming in from wholesalers is free and clear for DKAM to use for marketing.

PK doesn't need that cash since 30,000,000 shares were set aside for employees. We may be seeing all of those shares (including Lions' shares), but at this moment in time, it doesn't matter and we cannot be certain. The financials coming out in a few weeks will clear some of that up.

"Longs" all have to accept what may have to happen, Rheingold's revenues have to grow if we are ever going to see this company reach profitability.

At the moment, those new shares are probably being purchased by "traders" watching the revenues and readying themselves to try to take advantage of the situation. There just aren't enough existing "Longs" to buy up all those shares.

If new "Longs" are buying the shares, I can only hope the ranks of new shareholders is swelling from retail customers buying Rheingold, and the employees and owners at Lions Brewery, plus the growing list of distributorships and retail locations who see more of the product flowing through their establishments. In all of these cases that's like "insider buys". They know something we don't.

I am really not sure how confident I am in the accuracy of the shareholder count listed at: http://www.otcmarkets.com/stock/DKAM/company-info

Presently, there are 660 shareholders as of Aug 13, 2010. We need to watch that to see if it gets updated. A rise in the number of shareholders would be very positive. We won't know who they are, but I would prefer those individuals to be from the "pseudo group of insiders" I mentioned above.

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