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downdraft

07/11/23 12:32 PM

#69829 RE: jimtash #69827

Sierra Nevada is a beast. Of course they've had 20 years to get there. We're just starting year two. We need that hospitality contract! Without it, it's a long, tough road ahead.

If BRBL is lucky, wholesale revenue to retail establishments might reach $400k this year, and if they were hyper-efficient in their operations, making a 20% profit for reinvestment, that would only be $80,000 in profits. That's not enough to even pay for the interest on just a $10 million construction loan for a larger brewery. But a 10% profit margin seems more reasonable anyway.

The taproom profits will certainly help, but in general it seems like it takes 5-10 years for any small brewery to make it to the bigger leagues without a huge catalyst.

Without the hospitality contract, they should still be able to get smaller business loans to slowly grow the business but I was looking for a super-runner here. I expect big news near the end of the month, otherwise they'll have to go back into my list of scam OTC stocks!