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Dennisb68

07/28/10 4:34 PM

#141878 RE: Nikodemos #141874

"Where do you see the valuation of this equity, and why?"

In my opinion Eric needs to get a handle on the debt and operating cost NOW and not sure how he is going to do that. You and I can't make ends meet when out monthly bills are 3 times more than our monthly income and Eric can't continue to do it either. I'm glad to see more stores being added but we need thousands of new stores fast or a huge increase in average store sales to make this happen. I would like a straight yes of no answer from Eric about our WalMart Canada. YES, we are secure for the long term with our contract with WalMart or NO we aren't and the company may be in danger of losing that contract. It's a long shot IMO but I've done very well with WNBD over the last 3 1/2 years so everything I'm investing now is free money or I probably wouldn't be buying the shares I am. Glad to see you are doing your DD because it's YOUR money. Remember, EVERYONE has an agenda here whether you are telling people it's time to BUY,BUY,BUY or SELL,SELL,SELL. 99.9% of the people either want the share price to go up or down for their OWN gain and will tell you whatever you want to hear to accomplish that. Good luck in your decision.
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solarflux2

07/28/10 5:17 PM

#141887 RE: Nikodemos #141874

The company has a yearly operating costs of about 1.5-2 million dollars with revenues of about 500-600k (although this year I hope to see 1 million+) They need to try and bridge that gap. They are adding more and more points of sale, and spending a hell of a lot in advertising. IMO, what's going to make or break this company is the US - they haven't really begun to penetrate the US market yet, most of their revenues are coming from Canada (IMO) but if they can achieve the same level of success in the US that they have had in Canada, they will do fine. All it would really take is to see the same kind of National Accounts in the US that they have seen in Canada.

The question investors need to ask themselves IMO is what is the bulk of those operating costs and can they increase their revenues, or lower the operating costs? I think there is a good chance they will succeed, because a huge chunk of the operating costs are being spent on advertising, merchandising displays, ect. - about a third of the operating cost is advertising/promotion, a third is financing/interest, and a third is employee salaries.

So the quarterly financials for the rest of the year are important to look at, at least to me.

I'd say the valuation is up in the air right now as this is an important year to see what happens. I like to focus on the increasing points-of-sale as that (and quarterly financials) are what we have to go on as far as progress with the company gos.