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JohnCM

10/25/14 9:03 PM

#8251 RE: Jeff-M #8250

geezeragain

10/27/14 2:30 PM

#8252 RE: Jeff-M #8250

Jeff->Good article; suggest you read it.

For example,
1. PLSB hasn't yet introduced an innovative product. They might with PULSE but where is it?
2. PLSB hasn't developed its brand(s). They don't advertise.
3. Maybe okay?
4. PLSB hasn't the cash to build large inventories and wait 60-90 days to get paid. (See June 30 balance sheet). Has financing been announced?
5. Lemonades and C-water are not "remarkable." There are many competitive products.
6. PLSB has a poor sales history through June, 2014.

Retailer mark-ups on non-alcoholic beverages are typically about 67% over wholesale. At $1.49 a bottle, that would yield PLSB about $0.89. But, the article says that WMT demands a substantial wholesale discount.

Also, bear in mind that, even at $0.89, it will take the sale of more than 1.1 million bottles to generate each $1 million in revenues.
So $10 million revenues will require 11.1 million bottles to be sold (without advertising?)