Sales up 6.3% in 4Q if they do $30MM for the year. 4Q was very weak which makes me worry about their shelf space issues. The statement about branded being up 20% cannot be true. mamanipulating words
"Factual" is not the right word - I'm sure that the facts in the press release are accurate. You could say "Misleading" as to how the facts are presented but to say that he was nonfactual i.e. lied is not something that you should do without evidence.
The rough numbers may be pre-released or released all at once just prior to the CC. Either way, the cause of the lower -than-expected rev numbers will be revealed. Private label was not mentioned in the press release so one can conclude that this could be the culprit though there could be a very good reason for it. If branded business continues strong and the Kombucha rollout is more widespread, then this could be a 'hickup' and nothing more. There has been steady incremental growth so I would share the concern but would not capitulate by throwing in the towel. There's too much potential..... I am more concerned about the capability of mgmnt to strategically grow the business toward a 75 million co.....
Sentiment: Strong Buy
I assume Chris is updated daily on sales - the idea that he sticks to a "budget" number for a full quarter is not feasible. They may have ordered too many cans or bottles but the concept that REEDS shoved out product like some Soviet 5 year plan to satisfy a "budget" is unlikely.
Q4 2011 rev up 21 percent...prior 4 qtrs rev up at least 20 perecent....and here we have q4 2012...revenues not even up 10 perecent...huge drop in revenue for q4 - probably related to private label since press release did not mention growth of private label in Q412...despite new private label deals singed in q32012, despite three new distribution signed (CH/SF area) and despite limited K sales..company reports not even 10 perecent growth in revenue in one of their seasonally best qtrs.