Let me introduce myself and give some DD....
For the past few days I have been sitting on the bid buying 50 million shares. I just got my last bid filled a little bit ago.
I have a group of investors that buy what I buy and they all know I have a vast knowledge of the pool industry. They are already starting to buy and will be a long term investor like myself. That is why we have another round of huge bid support toward the end of the day. I think they are starting with about 70 million on the bid. We don't buy stocks to just flip them. I find companies that have great revenue potential and invest in them. AVEW fits that profile.
Now that I have my order filled I will tell you guys a little bit about the pool industry. I have been in the pool business for 25 years. It is a great industry with very good profit margins. I have a full service pool repair business, do remodels and also new pool construction. We are one of the largest pool builders in Shreveport/Bossier City La. I own Aqua Blue Pools and Spas.
Profit margins on new pool construction usually runs around 23-25% on most jobs, some a little higher some a little lower. It just depends on what problems you might run into when you first dig a pool.
We build most pools from start to finish in about 30 days. Average pool is about $45,000 and we build about 48 pools a year doing about $2.1 million in sales. So we net about $500,000 just off the new construction of pools. Now the big money is in service and repair and weekly pool maintenances. We get $35/week to clean a pool. We do 112 pools a week bringing in $3920 per week. Only expenses truck expenses, gas, ect. and labor which is about $525/week for labor to clean the pools. We usually net about $13,000/month on just the weekly pool maintenances.
Then we have sales off the pool chemicals sold in the store not to mention the chemicals we sell for our weekly pool maintenances. We work on a 40% profit margin on chemicals sales and do about $500,000 in chemical sales yearly.
Then we do 10-12 pool remodels a year and average about 28-30% profit margins on those. Not to mention the money that is made on repairs like changing sand in the filter, cleaning cartridge filters, replacing motors and pumps, cleaning green pools and repairing salt systems. Big money in all this as we average about $125/hour when doing this type of service. Now this is just one store. So you can imagine what will happen here when they start to acquire multiple pool stores that across the state of Texas. The more store the more buying power and the better the deals you get on product. Most subs that do pools in Texas cover a 200 mile area. So they will be able to use their same subs as they expand their service area. The pool business has incredible revenue and great margins. If we are all smart and just give this company some time to acquire pool stores, this stock will see incredible revenue. We are going to hold these shares for at least 1 year and see just how high this can go. I think mid .005 would be doable without any problems. I have already been in contact with Jose and I will be talking to him later this week. I will certainly share with him some of my vast information that I have learned over the past 25 years. I have plenty of contacts in Texas as we are only 25 miles from the state line and all of my subs come out of Texas to do work here in Louisiana. So I can certainly recommend more subs to him as they continue to grow. I would imagine when news does come out it will be about them merging or acquiring another pool store. We shall see.
I said all this just to let you guys know a little bit about the pool industry. It is a great business that can generate big revenue. If you guys have any questions fire away and I will be glad to answer them for you. I don't sit in front of my computer all day as I have 2 businesses I run, so be patient and I will answer your questions.
Take care my friends,
Mike
