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Re: Cobra Kai post# 3066

Friday, 08/09/2013 2:32:42 AM

Friday, August 09, 2013 2:32:42 AM

Post# of 20265
i too believe that positive margins will be elusive with the sales into HD.

The downside is the share counts are on the way to reaching maximums and the lumber sales will have to offset significant operational losses in lots of other areas for ECO- 3.7 MIL or so and Im not sure how high the margins at Home Depot would be? If ECO is supplying lumber elsewhere and losing money operational wise Im sure Home Depot if they bring this product into the stores and I feel there is a pretty decent chance of that than what kind of sweetheart deal would Home Depot want with all there leverage over a small company like ECO?

I think its good to question IR as they are paid to promote this- and its usually done in shares-attorney has gotten paid in shares- promotional videos & independent research etc.. would all seem to have share components and if they got shares up 500 million then 10 cents a share is a 50 million dollar market cap and Im curious what type of margins a big box retailer like Home Depot will have for ECO as that market is fierce and margins on lumber might be low to compete with non-protected products at fractions of the cost. just some thoughts- I like to hear some of the positive thoughts on this as well as negative to get all sides out and open for discussion.

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