The quarterly calls for this company are without a doubt some of the most painful out there for a company that is experiencing healthy growth.
The representatives of the company do not seem to be prepared for a quarterly call no matter who they give the mike to.It as if they do not prepare for the call and decide to wing it every time. Every question that they have been asked is basic and should have been expected with practised responses at the ready.Instead they hem haw wander and avoid the softballs that they are given in the call.
There is a huge perception issue here and it appears to belong to Chris Reed.He graduated from RPI in 1980 and started Reed's in 1987.That means that he has been the CEO of a beverage company for about 27 years.Yet it seems as though he has a desire to mention on every call that he is an engineer.He received an engineering degree over 30 years ago, but has been a CEO of a beverage company for 27 years.If being a CEO is something that he has trouble getting his mind around, or is ashamed to admit to being, maybe he should become chairman of the board and bring in someone who will act professionally as a CEO.
My favorite part of the call was when he said that the internal people had stepped up into the positions and also pointed out how the company had become much more numbers and metrics focused right before being unable to answer any number or metric questions on the call accompanied by the inability of the new people to answer a question about the business mix in the fourth quarter.
That being said , this appears to be a good time to enter the stock for at least the short term if you think sales are going to rise over 20% over the next 3 quarters.It would not be surprising to see this stock break over 8 this summer.
The history of this company over the last 3 years has been 3 quarters of good numbers followed by a something bad in the 4th quarter numbers.
Excellent points. Except that 2013 was a disaster. Their best quarter was break-even. All the other quarters were ugly losses because of all sorts of operational ball-drops. Still wondering what happened in Q4, which nobody seemed interested in talking about the elephant in the room. I'm assuming just some more typical operational & financial screw-ups.
Chris giving up CEO responsibility, while filling it with somebody who knows how to run a profitable company, would free him up to pursue all this other stuff that he wants to do. He could be the marketing face of the company, like a Ben & Jerry. He could develop his new flavors of kombucha, as well as his other food & beverage items. He could even help design the plant better. Whatever he wants, since, after all, he'd be Chairman, who stepped aside to let the CEO run a profitable business. It's already been proven in the past that they can easily be profitable.
Chris, if you're reading this, intentionally losing money is not a strategy to keep competition away. You already have competition, with the sodas & the kombucha. Don't kid yourself. Losing money only hurts the company, its employees, its shareholders, and ultimately, even its customers. Remember, Reed's is a publicly traded company. It seems like oftentimes, you forget that basic fact.
Chris is not listening and most likely doesn't read the message board. He is some kind of free spirit, medicine man, hippie, with a giant ego and a high IQ. He will not hire a professional CEO to replace himself and he is not losing money on purpose, that is silly, he just only cares about the top line and he expects/hopes that the bottom line will take care of itself. Also, if he hired this CEO or a replacement for Terry Foucaut, he would have to spend $300K+ to get the right person who could affect change and provide strategic guidance. That means initially losing even more money, are you guys ready for that? You prepared to add two C-staff to the company and add another $600K+ to payroll? I doubt it. So we are stuck in the vortex, we need to spend money that we don't have. Where are Coke and Pepsi and maybe Dr Pepper, Cadbury, Hansens, Hanes Celestial?
Seriously, offer Chris $10/share and game over.
HOW DARE YOU SIR? reeds is the coke of natural beverages. COKE SIR! not pepsi. chris reed is an expert in all things beverage. in fact, he just discovered marketing data that was only known to several thousand insiders in the beverage industry. like when gambini asked for a peak at the files in my cousin viinnie and he got to look at the case information. omg. omg.
we can spend liess on marketing and have it be more effective!! wow. imagine if everyone figured this out. less and less spend with more and more impact.
it was like the cc was lead by a naive kid with no experience talking about how he re-invented the beverage business and everything was suddenly going to be great and different. he even mocked the fools who build 250 million dollar brands quickly. lol. the fools!! seriously, chris are you mocking us with that conference call?