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Re: zackster post# 2248

Tuesday, 09/24/2013 2:25:26 AM

Tuesday, September 24, 2013 2:25:26 AM

Post# of 49370
I thought I did explain this back a bit ago of what I think is going on etc. They have more orders and demand but its a cash flow problem. The category and brand is growing but see in the beverage world they are working on net 30,60 and 90 days. I assume the large companies are paying net 60 to 90 like 7-11 etc. They might be out and have shipped and been placed in 40K stores but what percentage run out before they get refilled due to capital issue. There is no other product that works with there branding on the market they own the category and its growing so people wait. I am a perfect example of having to wait myself to get product. They don't have enough capital so the stores run out before more product comes in all the time. If these guys get serious capital this will exploded massive. They are fighting the growing pains of growing way to fast so sales don't meet the market demand and the time frame of refilling etc. That why when I see the largest broker and the Reece group come on in the recent press release I wonder how they are going to keep up with that added problem of all the growth and demand with the cash flow issues. The key is that there must be capital coming in we have not yet learned about its my only theory. Why increase distribution of sales if you cannot meet the demand etc. The market and the demand are there but they need a lot more money to be able to ship faster and fill all these stores and add the new ones that these brokers are going to bring to them. This is the main thing as they have the production means but I think there is a large cash flow issue, it takes them time to get product out to refill stores because fighting growth and spending money to promote and then it all comes back to the growth factor and the cash flow, very typical of a early stage beverage company in the first few years that starts to take off. Someone will step up and bring capital to take these guys to the next level because the market its there and the category is hot etc. Its going to take more money and its a marathon not a sprint and fighting this curve is the biggest battle. Once you are getting placement etc capital is the main issue these guys are way under capitalized. That what I think is going on.
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