Replies to post #149054 on Winning Brands Corporation (WNBD)

[lbdave]

It's clear the lack of business knowledge exist throughout the market. Companies with simple, sound business models must focus on the direction needed to achieve the desired end results. Sales figures languish due to the lack of product knowledge from the consumer at this point. There are clear objectives in WNBD's business model to elevate those numbers which appears to be underway now.

First: Their goal was to have product available at X number of retail locations to acheive their goal.

Second: Focus on consumer product awareness to bring sales figures to a point of being self-sustaining.

It wouldn't make much sense to reach 50% of the targeted retail locations then shift focus and capital to product awareness. Even if they were successful they still wouldn't reach their self-sustaining goal. They have gotten the first goal complete at this point (number of retail locations), and will allow the continued growth of retail locations to take it's natural progression while they shift focus on product awareness.

It's actually a very simple business plan, but not so simple to execute with limited capital. IMO they have done extremely well to grow from a point of zero to over 5,000 locations. As product awareness continues to grow, so will the languishing revenues.

Real funny how the numbers get played.

When factual numbers are available there is no reason to play or even speculate them. It's all there if one cares to do their DD.

[just_an_ant]

It was stated as "more then", which usually implies larger then.

To simple state doubled, or nearly doubled would equate to a more accurate analysis as you state.

Many companies will dilute that much in under a year and have nothing to show for it.

Lets look at WNBD

Where WNBD wasn't two years ago (to name a few things)

Australia
New Zealand
USA (except for a few hundred ma/pa type stores - maybe)

So we are in Australia and New Zealand and growing; also inside Progressive which is part of Woolworth Limited 19th largest retailer in the WORLD, who has formed a partnership with Lowes to commence in 2011

USA - now in Lowes (in Ohio), but also in Canada Lowes now. Also in largest paint sundry distributor - Lancaster Co with reach to approx. 15,000 stores (many being national banners) - for which we are at their sales rep meeting today and tomorrow as a featured product (only 1 of 32 that they choose, they carry like 10,000+ products).

Drug, C-store, Pharmacy, Auto sectors - all opened up past six or so months whereas before mostly just paint/hardware type stores.

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This raises a good point I think, if one continues to buy a proportionate amount of shares relative to growth in O/S they maintain a similar % of ownership in the company.

If one owned say 400,000 shares when it had 800million O/S, if they bought another 400,000 shares (may be cost average down or up at today's price) they would still own the same percentage of the company with 800,000 vs 1.6 billion O/S as they did two years ago (but the value of the business/market cap is greater because WNBD puts in higher annual lows - or holds the lows).

This was the part mentioned last night about how some likely continue to add shares during periods of 'weakness' (bottoms?) as available funds before available to do so. Be it from monthly savings that accumulate, or from taking profits from other stocks they are invested in (or trade).

Are funds/capital being used to 'build and grow' the business along its originally stated plan?

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Once certain level of retail outlets achieved, the next focus is pushing repetitive sales through those chains. The blog has shown how followup in certain stores is having this impact. While it would be nice to add x number of stores and automatically have y sales; outside of initial orders (not usually massive for a new product) it takes time to create adequate turnover (aka goal of 1 bottle a day average) that leads to sales over a multitude of months and hopefully years.

One also has to remember that prior to 2010 vast majority of sales were in Canada (population of approx 33 million or size of California), now WNBD is penetrating USA whose population is 330 million (10x that of Canada). I believe will we start to see that impact in the 4th quarter relative to the USA initiative and training/followup visits happening at store levels.

Depending on what some retailers do, it could grow moderately or more rapidly depending on rollouts and their timing.

[presence]

Exactly, McChief. Still, based on my purchase in '08, it has in fact more than doubled within 2 and a half years. I said "2 years"...what I should have said was "2 years and X amount of months, X amount of days...hours...minutes...seconds." Perhaps that would have prevented his "technicalities-will-set-you-free (and shut you up)" post from sounding as foolish as it did. Glad you called him out on it...well said, too.