Replies to post #156692 on Winning Brands Corporation (WNBD)

[Dennisb68]

Debt isn't always bad but you have to have something to go along with it. I don't really see that WNBD is currently a threat to any other company or they have a product that would significantly add to their line up. Perhaps if the product really took off that might be the case but at this point I see them pick up a few stores and lose a few stores. Time will tell.

[solarflux2]

A company can and will be bought out if there is potential for revenue. What value does WNBD have? They have already developed and branded their product, gotten into a good chunk of retail locations, created brand awareness in Canada (at the least), ect. A GOOD CHUNK OF THE COMPANY'S DEBT COMES FROM THE RESEARCH AND DEVELOPMENT DAYS. Now, if a large firm with deep pockets and resources comes along and purchases the company, they could potentially wipe out all outstanding debt in a day, spend a little more money on promoting their product, and have a new source of revenue trickling in.

And depending on the size of the firm, it could be extraordinarily easy for them to get winning colours into national banners relatively quickly, because they might already have established relationships with said retailers for other products.

All this being said, I don't think the CEO is going to be selling this company anytime soon.