Replies to post #55468 on Drinks Americas Holdings, Ltd. (DKAM)

[Toxic Avenger]

How did that guarantee from Mexcor work out last quarter?

Rheingold was 73% of gross sales
"We launched the sale of Rheingold beer in the second quarter ended October 31, 2010, which sales accounted for over 73% of our total three month sales"

leaving 27% for the Mexcor spirits business. 27% of the $144k in gross sales is $39k. That's $13k/month.

And how will Rheingold go from -9% gross margin to +20%?

"Let's assume Rheingold goes from $100k in one quarter to $2 million 2 quarters later". Good luck with that assumption.

So if they can get beer margins from -9 to +20%, increase beer sales 20 fold over 2 quarters, have Mexcor sales more than triple, AND drop expenses by 35%, then they'll be at break even in 6 months. Good luck on that. And what will be the OS then, 500 million?

[FUNMAN]

Cargo,

You can extend your own revenue assumption. I explained basically where my rev # came from, and Mexcor was rolled into that original number ... right from the 10Q.

I am more interested in conservative reality than Blue Sky ... and will be very happy if they hit my forecast.

That's also why I want the list of distributors. Not the list of retail outlets. A few months ago before the role-out began and there were no retail outlets, all the web site provided were the distributors.

It's easier to forecast average retail sales by calculating the average distributor contribution to total revenue. That way we can project the impact of every distributor added.