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gobots

10/06/10 10:14 PM

#67226 RE: M I T professor #67221

they will get a deal but dig this:

its not a guarenteed deal. what does this mean. first off lets say XYZ retailer orders 1 million bulbs at say a cost of 2 bucks per bulb to zevo thats 2 million dollars they dont have to order them. they cant get the factory to make them up front because they have no history of being sucessful. So they have a PO and nothing else. Ok the banks wont lend on a PO so they have to get street legal financing. So now they have thrown away a huge percentage of the profits. Also they are on the hook for any damaged products so thats another chunk of profit lost. Lastly since its not a guarenteed sale they have to buy back what doesnt sell if any. More profits lost.

So tey get a HUGE deal and lose money on it why would anyone do this......

Because the PR will drive the stock and they will dilute and make their money that way