Replies to post #49168 on Drinks Americas Holdings, Ltd. (DKAM)

[Mr. Bill]

and even a speculative jump would likely be temporary followed by a selloff and a drop back to new lower lows!

I also see a great possibility of a very large REVERSE SPLIT followed by MORE DILUTION on PRs

[John_Vallay]

Drinks America stock will never go up because of the following:

1. They have signed contracts and agreements that only benefit the celebrities.
Each deal was done in the belief that the 'stars name recognition' would sell millions of bottles. The payout to these STARS is too high and will never show a return on investment to Drinks America.

2. Management - In a small company the management is the most important thing. Patrick Kenny does not know business.
2 years ago I asked him - "WHEN WILL YOU BE RAISING MONEY?"
HIS ANSWER - WE DONT PLAN ON RAISING MONEY.
He was trying to convince me that his cash flow from the THEN CURRENT operations was going to support the growth.
He was DEAD WRONG!!!

3. Share Structure - the current share structure combined with the toxic financing means the stock will continue to decrease.

4. Fiscal 2010 sales were $890,000, a decrease of $1.6 million.
The prior year they did $2.4 million
That is a huge decrease.

5. LOSSES will always occur. If you take into account their SG&A and contractual obligations to the STARS, the company can not ever make a profit.

6. Cash Flow is never ending in the red.

7. CASH - On April 30 they had $203,552 in cash.
They owe $6 million.
They cant even afford to make interest payments on some of their long term debt.

8. Products - Some may like their products and some may not.
The bottom line is that sales are down, returns back to DKAM from distributors and stores are high and that puts them in even further debt considering they have to pay back the distributors ASAP.

9. Management - I know I mentioned it before, but I can't stop thinking the few times I spoke with Patrick Kenny. In simple terms he is either a very stupid businessman, or said what he said to me to try to get me to buy the stock or hold (not sell). Either way, management, combined with current contracts and agreements and a terrible balance sheet = LOSSES

10. The fianl reason - Who the hell drinks Reingold Beer and who in the world thinks having a PIGEON as a mascot is positive.