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Re: Tim H post# 32459

Friday, 06/03/2011 9:39:42 PM

Friday, June 03, 2011 9:39:42 PM

Post# of 92650
Sorry if I'm a bit skeptical. You say 500, but I don't recall any orders mentioned that started around #1, or #10, or #100, or even #200. This leads me to believe they started the order sequence at #300, since that's the lowest order numbers I've seen so far. Not unusual. Much like checks. Most people start them at 100. I've even opened checking accounts starting at 2000.

So, if they started at 300 and sold out by 500, their initial shipment was actually pretty small, especially since 6 was the order limit. Seems to me if it were substantial in any way, they would have said they sold out of xxx cartons, and have now ordered 19,600 more.

Now, as far as the 19,600 'cartons', I'm assuming that's the same as 'boxes', which contains 4 packs of filters. Undiscounted and sold individually, 19.6K boxes x $16 per= $313.6K.

While that's nothing to sneeze at, in terms of potential short-term revenue, it (19.6K cartons) certainly does not indicate quantities sufficient to supply a marketing program (QVC?), or other distributors, which is what is needed to break out of the .04's.

Advertising and Distributors.

When SFIO announces receipt of 200K cartons of filters plus starter and deluxe kits, then you'll know they have a big fish on the hook, preparing to supply them. If their shipments don't equate to $3M revenues and growing, annually, though, it's going to be tough to hold a $25M marketcap, IMO.

Since nothing has been stated by the company regarding any type of major advertising/large distributors, it's safer to assume there is none just yet. Assumptions is what caused ppl to pay .07-.086. Haste makes waste.

For all practical investing intents, SFIO needs to atleast sell this same size shipment 1 p/mo. to justify current cap.

Today's PR spoke volumes to me. Not so much by what was said, but by what was not said. If PR costs are any kind of concern, I would have to imagine they would have done like many other companies do: kill two birds with one stone, ie; address two or more concerns/issues at once. Since they didn't, I'm left to believe "what you see, is what you get". Nothing more. Nothing less.

While the potentials are certainly 'there', I'm getting the feeling that SFIO is not going to grow anywhere near investor hopes. It's a financially limited pinkie, and that initself stunts the growth that overly optimistic investors conjure up, in their minds.

And FWIW, it might not be too much of a stretch of the imagination to expect a major distributor to require seeing 'a growing, addicted, repeat clientele' first. This could require 6-12 months.

Sorry if this sounds less than rosy. It comes from dashed high expectations.




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