Winning Brands Corporation (WNBD)

[flaflyersfan]

butcherman, you are betting on an unlikelyhood;


As many times as that 6 phase business plan has been posted here; WNBD still remains in the "Inital Operations" phase after 5 years;

WBC has designed its business plan to pass through 6 Phases. These phases are not based on the calendar, but rather on business developments; Initial Operations Phase (Annual Sales less than $1 Million), Implementation Phase (Annual Sales of $1 Million to $3 Million), Growth Phase (Annual Sales of $3 Million to $5 Million), Self-Sustaining Phase (Sales between $5-50 Million), Established Phase (Sales between $50 Million and $100 Million), World Phase (Sales over $100 Million). Winning Brands was in the Initial Operations Phase when the reverse merger of Niagara Mist Marketing Ltd and Winning Brands Corporation was announced in 2006. This is the most difficult phase. The Initial Operations Phase is characterized my more research and production of samples than sales and more testing than actual distribution. In general terms, this can be thought of as the phase during which the starting foundation is laid for the subsequent phases. It was expected to come to an end within 2009 so that the firm can enter the Implementation Phase – but has not yet happened.. The Initial Operations Phase is not a profitable phase. Operational developments of a material nature during the Initial Operations Phase are disclosed by means of News Releases. The Implementation Phase for WBC is now targeted for 2010 as U.S. activities pick-up. This represents a formative period of at least 3.5 years from the inception of trading as WNBD and reflects the challenging nature of launching new brands on a widespread basis as a young and non-established supplier. Implementation of business relationship(s) with a major U.S. national retailer(s) is more likely to be manifest at the store level in 2010. A significant portion of product manufacturing since 2006 has been allocated to a consumer sampling program to create widespread customer experience with lead products, rather than waiting for the U.S. store listings to become operational. This means that the investment in the production of samples, and the shipping of samples, will not be recorded as sales for the purpose of determining the applicable operational Phase. It is important for investors in an early stage firm of this type to realize that the company's potential resides in its growth prospects within the increasingly important environmental sector - not the company's early financial position. This is a factor common to early stage entrepreneurial companies. There is likely to be an evolution of its financing plans to address emerging opportunities. Most capitalization options available to the company run in concert with the company’s operational prospects. Financing and Operations are therefore more closely related than in more established companies. An investment in Winning Brands Corporation is therefore HIGHLY SPECULATIVE.

The improbability is this; that WNBD would stop using stock to pay for everything if they ever became profitable. If WNBD was private the doors would have closed long ago. The amount of sales to become profitable is much higher than many here imply due to salaries, obligations, and sustaining that sales level.

But very very rarely when a Pinksheet becomes profitable do they stop using stock to pay for everything and start using real money. Even currently profitable Pinksheet stocks still dilute and make common shareholders pay for it all.

In WNBD's case, they are still so far away from profitability IMO it would be best to wait on the sidelines until such an event happens if that truly is the investment strategy.
But there is the conundrum. WNBD is banking on the faithful to keep buying and buying and buying WNBD stock and not making a real attempt to attract new shareholders which is vital to the penny stock popularity contest.

Assuming dilution stops once WNBD becomes profitable when profitability is a long way away is a dangerous investment strategy. Consider also that holding giant positions in WNBD make it virtually impossible to sell as it would take new enthusiasts to this boring played out stock story.

Good luck.