Replies to post #4013 on RCMW Group Inc (fka RCMW)

[Dodah]

Jack, I’m wondering what you want from your posters. I think that it is good to post concerns - it should not always be about promotion, but it should NOT also be about degrading the stock - I’m not accusing you of slamming this stock. You have been a great moderator. I think that you do and will continue to provide great DD. I just don’t think that you should allow people to do nothing but slam CPOW.



Thanks,




Dodah

[Eagle1969]

You mention the Chinese deal.

When the Chinese deal was announced and CPOW was to get 10% of revenues the stock tanked.
When the deal was signed giving CPOW 5% the stock tanked again.

Why?

CPOW is a bankrupt company and in no position to negotiate a good deal so they took a bad deal.

The reason it is a bad deal is that margins in this business are very low, probably something like 5% --I have previously suggested that investors/ posters here contact the Canadian university professors who teach agricultural issues every day and would give an answer on the phone to learn the exact figure but no one has done so.

The large American oil companies hire the best and brightest engineers from the best schools to gain max efficiency and their margin is only 6%.

So if CPOW gets 5% of revenues and margin is 5% of that --in order to earn $1 million the China deal would have to generate $400 million in revenue, quite impossible.

This is not a negative comment, this is a simple mathematical fact you can verify with a calculator.

CPOW took the deal to have enough income to pay staff and the cost of operation, just to try to stay in business somehow.
But the deal ties up their present staff, their equipment, for very little money. So the stock tanked.