Replies to post #34048 on Electronic Cigarettes International Group Ltd fka

[getrich11]

I know a contractor that almost went bankrupt waiting for Walmart to pay his bills. It took over 7 months.

He was a heating and air contractor putting a/c systems in new super centers that were being built.

[Full Contact Yoga]

Wal Mart is tough to do business with. Plus, they don't allow for much of a margin. Basically, you're in Wal Mart for visibility and volume, but not necessarily much profit.

[hawkeye612]

They are. When I was an owner of a building components plant in Northwest Arkansas, Walmart gave me a purchase order for a piece of trim, the bill was abit over $13.00. Took them over 90 days to pay it, became laughable. I finally called them just to see if they intended on paying it, which they did.

I happen to know abit about Wal Mart's growth strategy as a friend of mine was one of seven who signed off on their financial statements back in the 90's. (Vice President of the Hypermart division) at that time. Their strategy was to build a new store and it was up to their vendors to donate their opening inventory to Wal Mart. From what I understand every vendor did this with the exception of Johnson and Johnson.
To tie this rambling in, I think Fields since he had that Wal Mart background also shared their growth strategy with his former employer. With the exception, his thoughts was to buy up market share. Which eventually catches up and creates a severe cash flow crunch. So when the IPO failed it led to the convertible notes.
Oneill is not a dummy, as long as they can keep their debt within a reasonable amount they will have the sales to support it.
Eventually good things will happen with ECIG.

[niczar]

Good point. I operate a small business, 60/90 day payers can kill you if you don't stay on top of things. You have to have the ability to carry these customers, that's where most fail especially new companies.