Replies to post #55169 on Drinks Americas Holdings, Ltd. (DKAM)

[gapshot]

i wish i never bought this stock i have as much as you like to buy this company sucks mr bill was right all along...pat kenny is an A-shole for better terms and this management team sucks ...i have never been so pissed in a company in my life...no ir fluff prs and nobody at the office what a POS

[P K G]

There's no margins in beer. Rheingold can't make a profit. Have you looked at the fixed cost of DKAM lately? Those six guys taking so much out, there is no way a profit can be made with Rheingold and Mexcor. BTW, what in the world can six guys, all failures in their prior employment, be doing? Nothing is required with Mexcor. Perhaps one guy could fill his time calling to get expansion of Rheingold, if that's the way it's done. What are they doing? No sales. Nothing to do. I wonder if they even go to the office anymore. What does DKAM even need with a office? A little over $10,000 per week sales. They have nothing to do.

[Toxic Avenger]

Last Q the gross margin on Rheingold was negative, but let's assume it gets to 10% somehow. Last quarter's expenses were $850k, but let's assume they get it down to $500k. Last quarter's Mexcor revenues were about $40k, let's assume they get that up to $60k.

In order to break even, they'll need to sell about $4.6 million of Rheingold in a quarter. Where will they get the money to produce that quantity? What will the interest cost be if they can get the money? What if they don't reduce expenses? What if they can't increase gross margins?

Good luck, but you could be selling cures for cancer, but if it costs you more to produce than you can sell it for, or you can only produce enough to cover 10% of your overhead, you're in trouble.

And this doesn't even take into account the equity issues, like dilution, preferred A, B and C, and the large liability balance on the balance sheet.