I'm guessing that since CR mentioned the possibility of a secondary in the last CC, this all but guarantees that this will happen prior to next earnings. He could have drawn a line on this issue which would have displayed his confidence in REED's ability to generate working capital. It is obvious to me that CR has zero awareness towards Investor Sentiment.
If over 20% growth continues through the first three quarters the stock should rise again.
The question in the end comes down to what to do when the company hits the fourth quarter again and what happens if the growth dips below 20% (if it happens most likely to happen in first quarter due to weather).
two years ago everyone should have sold going into the fourth quarter knowing that the 20% growth number would not be reached because a million dollars worth of inventory had been sold in the fourth quarter 3 years ago and knowing that the company would not be smart enough to break it out and show that core sales had still grown over 20%.
When executives started leaving early this year it was not that hard guess that there would be some problem somewhere in the numbers that were going to be released.Time to get out and decide whether to buy back in after the drop.
Next few quarters should be good based on momentum of products, but for the long run it appears that they
are having more and more problems holding everything together.Short term buy for the third time, but unless they show something it will be time to get out either in the fourth quarter or before fourth quarter numbers are reported.
i think there is some truth in that, but there is nothing special about 4th q results. i also think it is hard to cherry pick when you should have bought and sold based on hindsight. i do not think the leavings/firings signaled anything. however, with hindsight it is clear that chris reed was trying some slight of hand. i no longer trust him. slippery is the word. the meeting where they said to bury the 4q numbers in the hopes no one would notice, was a fateful meeting. but investors are a hopeful bunch and most public companies are wildly overvalued and tend to stay that way. so, i expect buying by gamblers. investors however have to be very wary of the slippery ceo who does not appear to understand much about the beverage market and how to grow a brand with investor money. the 8 year performance of the shares and sales tell a story. they should be doing far better with much better growth.