Portfoliomangler used to brag that this stock always bounces back immediately from a sell-off down to $1.75, because it was "cheap" at $1.75. So why not $1.35? Huh? Huh?
A lot of pain happening here. See you under $1.00 soon. Hold on to those round-trip tickets!
Don't panic! Walk, don't run to the nearest exit. The fire department is on the way. LOL!
The fermentation is almost complete. This thing is ready to bottle and sell. If it closes below $1.39 today, the longs better be wearing diapers tomorrow. Don't eat the SCOBY!
Just found out that XingTea had 0% growth over the FIVE YEAR period between 2010 - 2015. So this brand is going nowhere, and may actually be in decline. Now we know why New Age sold for cheap:
From Bevnet dot com, Nov. 3, 2011:
"... Xing showed about $14 million in sales last year (2010), as per data from Symphony/IRI, which does not include many smaller, “up and down the street” accounts and Wal-Mart"
From Bevnet dot com, May 23, 2016:
"...Xing is sold in 40 states and internationally, with retail information firm IRI showing sales of close to $14 million in the 52-week period ending Jan. 24, 2016."
30% annual growth over five years is not bad.
The Denver Post
by Jason Blevins
January 2, 2015
"Aspen Pure has been bottling water from an aquifer beneath the San Luis Valley in Alamosa for 12 years. The company’s 15 Alamosa employees also bottle for private labels, which make up the largest segment of the bottled water market.
Aspen Pure, which is owned by New Age Beverage, has logged 30 percent annual growth for the past five years, vice president of sales Rob Curtis said.
The key to battling Nestle’s Pure Life and Arrowhead, PepsiCo’s Aquafina and Coca-Cola’s Dasani is to find a niche, Curtis said. Aspen Pure’s bottle is larger — 24 ounces — and fits in a bike’s water bottle cage and car cupholders. Aspen Pure water is sold at Denver International Airport and at Whole Foods stores in Colorado and neighboring states.
“It’s always a struggle to work against those guys with the deep, deep pockets. We try to keep a local appeal,” Curtis said. “It’s a growing, competitive market. It seems like these days, everyone wants to start a bottled water company. You see people pop up, and they are gone in a year.”
They have to wait until after the deal closes to announce the secondary offering, so they can maintain the artificially inflated stock price and get the highest possible VWAP. That was the purpose of the LD Micro dog & pony show - to keep the stock inflated up till the time the deal closes. After that, they drop the hammer. That's how OTC stocks work.
"...You were either dropped on your head at birth or are attempting to pry shares out of the hands of good people for yourself"
So stop whining and do something about it. Fight facts with facts! Instead of using Brent Willis' own biased LinkedIn page as fodder, try using valuetime's method of quoting archives from the New York Times or some other reputable journal. Don't you even know how to defend yourself, or are you just going to sit there and watch him take this stock down? You are pathetic.
BTW, having all that extra sugar extends the life of the live colonies inside the bottle for a longer shelf life. It makes for good business sense in one respect, but they sacrifice good will with the customer by diluting the traditional health benefits of Kombucha with excess sugar. And everybody knows that a long shelf life means "less healthy". Vegans are well aware of this.
Lol, they just add extra sugar during the fermentation process and call it "proprietary". Any Kombucha maker could do it if they didn't want to scare away their health-conscious base of customers.
"...You haven't tasted Bucha."
Ask me any question about the small print on the bottle that you wouldn't be able to see on the Internet, I can prove I have them. I still have 4 unopened bottles in the fridge. You shouldn't lie about me so much.
By increasing sugar content by six fold, Bucha loses the built-in base of healthy Kombucha drinkers. But if they lower their sugar content to be in line with regular Kombucha, they lose the ability to mask the vinegar taste, and forfeit any potential soda converts.
"...Doesn't taste as good as regular soda ? Huh ?"
Does it taste 3x better than regular soda? Because that's what it costs.
"...You obviously haven't tasted Bucha..."
Yes I have. I posted my review in a previous message last week. Tastes like wine cooler. I prefer soda. Or regular iced tea - which Bucha does not taste like. As I said in my previous review, maybe they should put this stuff in the wine cooler aisle. At least that would make sense. What they are doing now is trying to sell a wine cooler flavored product in the expensive refrigerated healthy section to people who are accustomed to liking inexpensive sugary drinks. That makes no sense whatsoever.
First of all, it doesn't matter if Bucha has the best tasting Kombucha on the shelves if customers don't buy it. I don't even think Bucha's target customer is the traditional Kombucha drinker. There is WAY too much sugar in each serving for Bucha to be healthy. That is to say, 6x the amount of the leading brand (GT's), and the largest amount of sugar out of all kombucha's on the market. Forget health-conscious consumers. The real target consumer for Bucha is soda pop drinkers. But how do you convert soda drinkers to Bucha - a product that doesn't taste as good as regular soda, that still has too much sugar, and yet costs 3x more than a regular soda pop? That is an uphill battle my friend. They can stuff the channel all they want to make it look like consumer demand is strong, but that will only last so long.
This stock is all about XingTea and Aspen Water now. Bucha will likely not catch on with the consumer. However, if it's true that Xing and Aspen really do $50 million in annual sales, then Bucha's $3 million in annual sales doesn't amount to a hill of beans either way. Without XingTea and Aspen, this is a 30 cent stock, and the market well understood that. It was trading in the $0.30's before Willis stole Xing out from under the original owners. It probably doesn't matter much if Bucha fails, but if Xing stumbles under Willis, then watch out below.
I already told you. GAAP EPS will be negative every quarter. And the more Bucha bottles they sell, the more they will lose on the bottom line. Soon, the market will figure it out.
You do realize that most of the good news is already priced into the stock, don't you? You think the stock will pop after the deal closes? Why do you think that? Does the market not expect the deal to close? I doubt it. It's already priced in. I had to teach this lesson to portfoliomangler in regard to the LD Micro presentation. He thought the stock would rocket above $2.00 after the conference, but the reality was that the good news about the acquisition was already priced in, and the stock sold off on the news. Similarly, the stock will likely sell off on the news when the acquisition officially closes, it's simple market mechanics. Buy the rumor, sell the news.