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User-65225

01/22/10 12:05 AM

#117250 RE: brian39 #117249

They sell multiple products, but lets focus on just Winning Colours for now.

WC can be used by anybody and its consumable... It can be sold in hardware stores, gas stations, grocery stores, art stores, paint stores, auto stores, pet stores.. pretty much everywhere...

The cleaning market is over 100 billion dollars worldwide. A good size market

Now you want to know what kind of potential it has?.. Lets compare to another product that launched via DRTV...

repost... Orange Glo sales jumped from $1.2 million in 1996 to $129.6 million in 2000, placing the company fourth on Inc. magazine's list of the 500 fastest-growing privately held companies. In 2001, the company posted nearly $240 million in revenue. Sales for calendar year 2002 are expected to top $400 million.

This rapid growth sales cycle is pretty common with consumable type products that everybody can find a use for... They start slow while they make first impressions, develop their message/niches, solidify mass production, etc. Then once they have a proven sales history/niche, every retailer wants to carry it.

OrangeGlo initially used the infomercial to generate sales, but the MASSIVE growth took place when they hit specialty retailer Bed, Bath Beyond.. This caused the domino effect and soon they were in all major retailers.

THIS is the power of a consumable product with mass retail penetration... Once the first USA mass chain falls for WNBD, it wont be long until the second IMO. Just like they did in Canada.

People can run and chase the next hot penny scam, but IMO they're missing some very rare potential here... Nothing is a sure thing, but there are better ODDS.

PS: FYI Oxclean was pretty much ONLY selling in the USA during this time. Two products (Oxiclean/Kaboom) in ONE country were responsible for this growth... the market is MASSIVE
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User-65225

01/22/10 12:17 AM

#117252 RE: brian39 #117249

With 1.3 billion O/S they need $13,000,000 profit to achieve a .01 earning per shares (EPS), right?

Whats a fair p/e for a high margin rapid growth stock, 20+?

For each $13,000,000 PROFIT = .20+ per share ... Is that fair?

How about a 10 p/e instead? For each $13,000,000 profit = .10

If they hit Oxiclean numbers and saw $130,000,000 PROFIT does $1.00 per share sound out of the question? Thats just a 10 p/e... What if its 20 or higher like other stocks in the same category/situation?

These numbers sounds crazy for a .01 stock, but are they out of the question? Doing the math is the only way to gain perspective.

High margin consumable product stocks are the most explosive IMO... People CONSUME...

This one went from a cap lower than WNBD to almost $7 BILLION...