they had 200k cash, said they would not dilute.
NP, you know they have all their loot tied up in inventory waiting for plant completion. And we all know the cash cycle of the biz. You left out the EBITDA incentive and the nature of this is just a bridge loan. Millions of dollars of inventory just waiting for that elusive completion of East and West plants....and whatever else they cant announce because they cant fill orders....yet.
Sad? Certainly. The end of the road? I guess you can tell us how that will transpire.
reeds will have transformational news wayyy before jsda. Transformational news moves stocks. The nice thing about a panera trial is that it can not be hidden from the public. It involves the public. If it is the case that it is panera
Since no one has noted the similarity to Monster's earlier distribution, I will.
Before MNST, then HANS, had a Coke deal, they turned their whole distribution over to AB.
But before they did, they built the relationship slowly from just one AB distributor, to several, to a total takeover.
That was about 2008-2009 I believe.
i guess i was not totally focused, because i missed the fact that REED is in trials with a large fast casual and bidding it out as well.
I have to believe that was a key driver for buyers.
I am loathe to speculate, but even if it was only 30mm/year in bag in a box, at a 33%GM, that would be a pretty easy ride to 10mm more in GM's. SGA associated with the program could be offset by efficiencies and optimizing logistics between the plants, THEORETICALLY.
This trial thing. Someone must know something more than we do. Isnt that always the case. IOW, this isnt happening in private and secrecy.
Reading the transcript, the plants should be all running smoothly later this year.
Any other thoughts from reading the transcript
NP, you have been rather muted here.
it's been over 2 years. He is so paranoid that they will steal his secrets he didnt really try until the other copacker gave hime the finger.
Why the finger?
Because the old sage, CR, chastised them on conference calls.
Note to CR, if you are going to say you are dropping your east coast packer on a public conference call, it might be a good idea to line up another copacker FIRST!
and i have only scratched the surface with the opportunity costs.
Like consuming the LA plant with marginless K and PL versus higher margin RGB's.
I dont think a total moron could have made more poor tactical decision making.
Thats why no one is selling despite the catastrophic quarter. These are hardened shareholders.
i cant imagine walking away at this juncture. Shareholders are well adjusted to disappointment. If these results dont bring it down, at least for a day or three, then the market, at the moment, is okay with the delay in production.
monster grew from nothing to 500m sales in the same time that it has taken CR to line up the second east coast packer.
and monster did not produce any of their drinks. all copackers.
Astonishing incompetence, to be quite frank.
does not need special copacking skills.
the market listens. I bet if he was not on the team and this was just CR, stock would be in 4's
the business is robust. Cant even talk about Walmart, Target, etc when you cant keep up with demand. All upside from the 5's. No dilution=no prob.
they updated those numbers on the call. there is no collection issues and the inventory is raw materials for planned runs and the plants coming online
ok, u r right on the 20sma. I was looking at the double bottom, candles, volume and MACD.
Im so worn out with broken promises but i will look at clir. ughh
the excuse for PL/K taking up W Coast capacity is beyond ridiculous. They are way behind schedule on EVERYTHING. It was 8 Qtrs ago they wanted to get a new copack on East C. And what is the excuse?
typically from the days the quarter is about to close until 24-48 hours after earnings release/10Q, insiders are not legally allowed to trade.
Before about June 28th they could, IF they were NOT in receipt of MATERIAL NON-PUBLIC INFO.
Call a corporate lawyer if you dont believe me.
it is consolidating its prior move from .35 to 3.50. volume usually slows as the pennant reaches its end. Then something exciting usually happens.
a move higher(Spring) then a range that gets tighter(lower highs and usually higher lows.
i saw the interview at b riley, and although nothing official per se, there was some good news there. Add TJ's ginger beer and now K @ Shaws..... Ahold and Delhaize recently merged and an entry into that conglomerate would be huge for K. I think it is just a matter of time. They are pushing more 'health' food all the time.