InvestorsHub Logo
icon url

solarflux2

06/10/10 12:27 AM

#134677 RE: Icanslim #134674

IMO there's a few reasons why this isn't trading higher.

One is the company has started reporting financials and they have been a little lackluster for 2009, and for Q1 2010. You can check them out at http://www.otcmarkets.com/pink/index.jsp
IMO the sales revenue should be exploding this year.

Another is that, unlike many penny CEO's, CEO Eric Lehner has (historically) avoided pumping the stock, because the man has integrity, and didn't want to mislead investors, or pump without good reason. However, with things ramping up, he's stated that now is a tipping point for the company and he wants to start promoting the stock. He's expressed interest towards a profile on moneytv for example.

Another would be that we've been waiting on a national account to activate (most likely Lowes) for awhile now.

Another would be that we are waiting on current status.

But these are the few things the company has failed to make good on (yet) and they are making progress toward them. The company has been achieving a lot lately - for instance all the news coming through in the last two weeks - so IMO savvy investors should start jumping on-board at a greater pace.
icon url

User-65225

06/10/10 12:30 AM

#134681 RE: Icanslim #134674

The majority of the retailers are on Canada, which is smaller than the USA... About 1100 locations are in the USA.

This info will help put the companies presence into better perspective...

WNBD Market Perspective (repost)

One unique trait that WNBD carries over the majority of penny stocks with similar market caps, is that they have a proven "growth model"... They have landed most every major department and hardware chain in Canada... and some of these same retailers are based in the USA, increasing the odds for expansion.

Most penny stocks have a business plan, but have yet to prove that it works... WNBD's model is there for all to evaluate. You can see which stores they're in via pictures/visits, you can go to the Wiki Site and see how they are developing their marketing campaigns for these stores, you can read the detailed emails by the CEO as to how they are executing certain aspects of their business, etc.

The fact that we can see this model in action is one thing, but to evaluate and foresee what it could do in a larger market is the key. Lets examine this in more detail...

The majority of their sales have been in Canada, which has a population of only 33,212,696 and can be a harder place to market, due to how spread out it is. Comparison: California population = 36,756,666. Now pull up a map and compare the size of California to Canada...

Their current expansion into the USA mass retail market (population = 304,059,724, not including illegals) is the tipping point for sales IMO and they should start to compound rapidly once we hit the shelves of our first USA mass retailer...

Heres a basic calculation using Winning Colours WHOLESALE price ($4.00-$4.25)... 1 million bottles sold = $4,000,000+ revenue... Glance back at those populations and remember this is just for one product.

Now, consider that every new customer that buys a bottle could potentially buy many more throughout the year. The products are CONSUMABLE... Especially paint contractors, janitors, artists, etc that use it daily for clean up. Most everybody cleans and they do it often.

The key is finding a play like this (consumable products company) right before the "growth stage", where sales compound rapidly due to proven sales HISTORY leading to future sales interest... Once you PROVE that a product is viable in the market place, many major retailers will carry it. Its that simple... They dont care if it works, they just want to make $$$...

http://www.netmba.com/marketing/product/lifecycle/

Growth Stage

The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. The marketing team may expand the distribution at this point. When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firm's product is better than that of the competition.

During the growth stage, the goal is to gain consumer preference and increase sales. The marketing mix may be modified as follows:

*Product - New product features and packaging options; improvement of product quality.
*Price - Maintained at a high level if demand is high, or reduced to capture additional customers.
*Distribution - Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product.
*Promotion - Increased advertising to build brand preference.

icon url

just_an_ant

06/10/10 12:41 AM

#134684 RE: Icanslim #134674

Need to understand the process.

The iBox shows store count growth since October 2009. Just now in 2010 have really started penetrating the USA, major inroads made by Lancaster end of 2009, early 2010 to put Winning Colours in all 50 states.

Being in a store doesn't equate to instant large sales (there is initial stocking sale, but re-orders are important..and faster turns as well). It takes awareness (advertising) to create customers and demand.

I'm little busy wanting to do some little iBox updates after my DRTV sticky recap before hitting sack..past 12:30am EST.

Hopefully Rocketstocks can find Eric's post (memo) that talks about getting into stores is just the first step (a nice opportunity/privilege to have), but increasing through-put becomes important to all (retailers, WNBD and obviously shareholders) - Eric alluded to it again briefly in today's PR.

We are nearing that stage imo. DRTV will be a big push imo. We have experienced personnel in USA assisting (Fantus and Udell) with far-reaching resumes and connections.