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Virtual Drew

08/27/11 9:26 AM

#172259 RE: ActivClient #172258

Very nice recap of past events ActivClient!

You know as well as I know, response are tailored to those being responded to.

Eric has fooled many, and continues to fool with the help from others.

Taken from Reuters on December 31, 2009 at 5am
http://www.reuters.com/article/2009/12/31/idUS62283+31-Dec-2009+PRN20091231

"2010 is a new period in the company's life,"

"2010 is not going to look like the previous phase. [Initial Operations Phase]"


2010 is the year in which these things can come together and bring impressive results. My goal is simply that our shareholders will own a brand(s) which is on a steep upward trajectory so that the 'sky is the limit' as far as the future value of their company is concerned,"

Yeah, and 2011 is like nothing before either...MASSIVE DILUTION, similar annual revenues, and multiple failures (ie DRTV). And the CEO feels he deserves it's necessary for him to give himself a $120,000 salary.

SALES
2008 = $510,819
2009 = $541,879 (Up 6.1%)
2010 = $555,038 (Up 2.4%)
2011 = ~$600,000 ($292,203 as of June 30, 2011; maybe only $584K) (Up ~8%)

SHARE STRUCTURE
mid-2008 - 800M shares
mid-2009 - 1.2B shares (Up 50%)
mid-2010 - 1.5B shares (Up 20%)
mid-2011 - 2.4B shares (Up 60%)

FUTURE SHAREHOLDER VALUE
"Sky is the limit"?!?
"Steep upward trajectory"?!?!
Not unless you are standing on your head!!!

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just_an_ant

08/27/11 10:22 AM

#172261 RE: ActivClient #172258

That was PR'd end of 2009 (December 31st).

http://www.winningbrandscorporation.com/files/newsfiles_09/dec31_2009.htm

A characteristic of the Initial Operations Phase was for Winning Brands to obtain listings with the Canadian subsidiaries of U.S. owned retailers, such as Walmart and Home Depot, who have stores coast-to-coast in Canada. This was in order to prove that Winning Colours Stain Remover would satisfy consumer performance expectations, even when used by thousands of store customers spanning a variety of demographic “types”, and to prove a low rate of product return. A further objective of Initial Operations was to demonstrate to category-leading national retailers that Winning Brands is capable of doing business with them.

“2010 is a new period in the company’s life.” said Winning Brands CEO Eric Lehner. “On January 26th work is beginning to develop our first-ever U.S. national Direct Response TV commercial. The commercial is to be broadcast on U.S. cable systems nationally. It is well known that products in our category are particularly well suited for this venue, leading to a number of famous success stories. Our U.S. national DRTV can provide a powerful source of direct revenue while at the same time building U.S. consumer awareness of Winning Colours Stain Remover – a factor of interest to large U.S. national retail relationships which are forming behind the scenes. Furthermore, toward the end of 2009, we have begun adding local U.S. independent retailers at an unprecedented pace as distributor operations are getting into gear. Winning Colours is now on the shelf in almost every State in America. 2010 is not going to look like the previous phase. The conditions are ready for us to leave behind the Initial Operations Phase, which is characterized by modest sales and high development costs, in order to enter the Implementation and/or Growth Phase in 2010. Everything we have done in the Initial Operations Phase has been preparatory – 2010 is the year in which these things can come together and bring impressive results. My goal is simply that our shareholders will own a brand(s) which is on a steep upward trajectory so that the ‘sky is the limit’ as far as the future value of their company is concerned.” Mr. Lehner says.



I see four items in the above leading to the thoughts

1. Canada operations of leading USA companies (aka Walmart, Home Depot)
2. DRTV potential
3. USA national retailer relationships forming behind the scenes (most notable at the time - Lowes)
4. Frequency of independent retailers being added (via Lancaster)

So what happened?

Walmart Canada dropped us in early 2010 (ouch of surprise, Eric was straight up in addressing this change via memo to moderator for board interest - there was no blog at the time)

DRTV didn't have the USA national launch (that it mentioned as criteria to full implementation) so it didn't go beyond an initial test (at the time)

Lowes didn't activate their test in USA (ohio) until latter part of 2010

Lancaster (Merit Pro) felt effects of lackluster economy and headed towards bankruptcy.......


So what is present status

Walmart Canada is back in the fold. Product anticipated on shelf third week of Sept 2011

DRTV likely waits in the wings until suitable national reach by a national type banner (to include in advertising - WNBD business model is distribution via local retailers - not ordering via online/TV where S&H is not effective to consumers)

Lowes activated in Canada and got rolling in USA, coming up on a year test in Ohio and given data if this was rollout and experienced similar sell through as to date in the 3 stores in Ohio would result in approx. 2.5 million in sales at the 'retail' level.

Lancaster has emerged from their issues; seems commitment still exists with WNBD and 1000+; in addition to Do It Best in nearing rollout and launch this fall with upcoming dealer show in October.

Relationships are developing with other USA national in the likes of Duane Reade (Walgreens) in New York, Home Depot (online only at this time), and Sam's Club (Walmart USA) in Houston it appears soon.