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Brophtron

09/18/14 10:11 PM

#6569 RE: motionjoe #6562

That's the thing, though

2X brand velocity can be explained by new stores.



Actually, it can't be. Toevs defined velocity as dollars per store, so opening new stores doesn't change the per store dollars being sold.

the distribution has exploded.



But it has also cut way back. Towards the end of last year, based on what Toevs had said, the number of stores was between 8,800 and 10,000. He's now saying that they're in 5,000 stores. So they've lost stores - the only reason that stores would drop a product is that the product isn't selling.

i know what you're hinting at and i agree it is key. distribution attrition is the worse possible thing for JAMN, but your velocity n growth indicators are dead ends.



Have you done the math, though? $2 million for the quarter (90 days) at 5,000 locations is about $4 per store per day. That's a box or two of product per store per day.

just noticed that in 2012 MC entered a 15 year (renewable) exclusivelicense agreement to use the Marley name. if i recall correctly, the brand used to be under rohan's identity. the picture is rowan and not bob. wondering if it made much sense to pivot to bob, because licenses have limited value and really, imo, limit MC to one exit option.



The earlier version of the license agreement was a non exclusive license; it was almost worthless. But they've got to call it Marley Coffee; they'd never call it Rohan Marley Coffee and it's why they use the image of the lion.

But JAMN has several challenges ahead. Their latest cash infusion was $2.5 million and they've already gone through $1.4 million of it. At this rate, their remaining cash won't last longer than the current quarter. And based on their last statement, their current break-even point is $56 million in sales.