Good points. I wasn't around to watch the Trump Vodka thing first hand, but also know the declining economy messed badly with a company totally unprepared to deal with it.
They blew their chance then ... they have another now, and thankfully I have not been invested since Trump Vodka's roll-out.
I am in this to watch what else DKAM brings to the table in regards to growing the brand and fixing some of the problems you mentioned and others we have all discused before.
If they turn around the ship then some of us stand to make a lot of money. If they don't I'll take my loss, lick my wound and move on. No big deal.
I'll re-evaluate on every piece of negative and positive news/report, and believe my eyes.
If they ever kick off over-the-airways advertising, I would be shocked not to see the share price spike.
If they ever find the money to do that and compete/market, on a higher level with the established players, I really have no idea what that will lead to, including brand new private equity investors who are today becoming flush with cash from the stock market that's soared since 2008. That's also where new board of directors can come from.
So I do hope PK will see his own self serving prospects and that they are directly tied to increasing shareholder value. No doubt, I am gambling here.
kezzek Share Wednesday, February 16, 2011 10:50:58 AM
Re: FUNMAN818 post# 57019 Post # of 57020
What I think you're missing is that stopping dilution means closing the business. They are highly negative in cash flow and liabilities.
That required dilution means likely a continuing falling share price.
It appears that Rheingold in the first quarter had a negative gross margin. Even if increasing sales fixes that, gross profits have to be shared with the brewery, distributors (and with increasing outlets and constrained production, they will need more compensation) and retailers.
Then there are overhead expenses, which seem unlikely to decrease in the face of more distribution, launch events, marketing and other costs associated with getting the various brands, particularly Rheingold, into the public consciousness.
I have to vehemently disagree that DKAM "never had this chance". They had more than this chance when they rolled out Trump Vodka, not only with strong early sales, but heavy outside investments and a strong balance sheet. Letting expenses run away then was a catastrophic mistake, IMHO, and caused most of the subsequent problems. Personally, I don't see any way for them to recover at this point.
GLTA.
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