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finacialguy

09/26/07 5:07 PM

#33 RE: EZMunyMaker #32

EZ, looks like the smart play is to invest in the PR Firm that TOOT keeps paying. Look at all those PRs and interviews. Then there is Ben E. Keith but they are private.

SSPlayer, only sales people get turned on by the top line with growing losses. You obviously are one.

As for my client, I think he understands what he is doing. If he wants to talk to a sales and PR guy he might call your CEO with his degree in Advertising. Who would he call to find out when the expense growth will slow to below the sales growth percentage? I'll be sure to let him know that calling the CEO is what he should do, but we all get to hear the CEO's line on those interviews. It is a bit much most of the time. Sales growth only leads you somewhere when you are selling your product for more than it costs to produce, distribute and manage. Losing only $10,000 less than your gross sales in a quarter is not much of an accomplishment. Especially in a quarter that had all those great PRs and record sales numbers. Tells me that this company is in need of someone who understands costs and expenses and not sales for sales sake and churning out PRs.

I have not completed my report on the quarter yet. I see management has decided not to disclose the amount of shipping income included in gross sales and the amount of shipping expense it places in sales expenses anymore. Wonder why that occurred? Maybe the CFO would know and maybe I'll give him a call.

Don't bother to reply, I understand you sales types and I'm not buying the sales growth line until there is some control on costs and expenses. And yes, I know all the excuses, new company, expanding market, blah, blah, blah, they are all just excuses. It takes a real manager and leader to control costs and expenses while growing the sales.

I have produced a number of questions about TOOT and the future. I'll give them to my client and if he wants to ask Merrill he can call him or just wait for another quarters numbers to be released and more of my brilliant analysis. I would expect that the July to September quarter would follow with more large (percentage wise) losses when compared to sales. $196,000 loss divided by $204,000 gross sales is a 96% loss.

I bet Ben E Keith is making money though, they are probably loving the relationship. They sell TOOT all the pie products for a profit and then buy the pies for less than TOOT can produce them and sell them at a markup for more profit again. Now that's a sweet deal. I'd invite you to my show as well and give you as much booth space as you can stand.