How much old debt will ABRW assume from the dinosaur company? $20 million? $40 million? Give me a number. You don't really believe ABRW bought that company for peanuts unless it came with a boat load of debt, do you?
Did you factor in the amount of debt that comes with the acquisition? ABRW takes control of their debt as well as revenues. But nobody wants to talk about that, and you won't find that number in the press release because it must be HUGE!
Yeah, he bought a company 20 times the size of ABRW, and in doing so, he dilutes the so-called "hyper-growth" by 20 fold. Now you're stuck with a large dinosaur with stagnant top-line growth that masks any Bucha growth. Even if Bucha grows sales 500%, it will be a meaningless drop in the larger bucket when you take into account the massive share dilution and mega debt.
I listened very carefully to the conference call. And therein lies the problem. The CEO was very clear that the only way he would agree to lead another beverage company was if it was in a hyper-growth space such as Kombucha. And here it is a month later, and the first thing he does is go out and acquire a LARGER company that only sells beverages in slow growing markets. That is a red flag my friend. The CEO's motives for signing on to lead ABRW are no longer valid. Heck, he even changed the name of the company to Bucha. And now three weeks later they change the name again to accommodate all the new slow growing brands in the portfolio. Talk about lol! This guy is riot. Don't be surprised if he sells off the Bucha brand in a few months when he realizes it will not gain traction on a national level. It is strictly a west coast fad. And this quick acquisition indicates he understands the mistake. Now if only he would tell the truth to investors. Don't hold your breath.
Sentiment: Strong Sell
Bad news. Say goodbye to all that hyper-growth that the new CEO was bragging about. He just watered down the fastest growing drink category (Kombucha) by adding two dinosaurs (tea and water). Nice going. Lol!! Sell at the top now before stock goes back to $.40 range.
"The Kombucha category is a $529 million segment growing at around 40% per year. RTD tea is now a $6.6 billion category in the US alone growing at 3.6%, and Functional Waters is a $17.2 billion segment growing at 11.5% per year".
Sentiment: Strong Sell
Update: congratulations to everybody who sold above $0.20. I told you on Feb. 5 that nothing has changed. They just put out a repeat of the original PR that announced that same SDI contract from 2015. There was no justification for the pop in price. There was still No funding announced. It's a shame that people lack critical reading skills. Oh well.
Poor guy doesn't even show his face around here anymore. Can you blame him? It's not easy polishing a turd for a whole year with nothing to show for it.
Not a penny more. But could go a lot lower than $.15
Gomes doesn't have a clue what he's talking about. How's his risk/reward scenario been working out for you since he told you to buy this POS last year above $.40? Lol! Beach squatter got taken for another ride buy his guru Gomes. I love it!
Wow, that was one prophetic call by me! Congrats to my wise listeners. Again, just the cold hard facts. No BS pie in the sky pumps like you get from Gomes.
"...my contacts tell me that funding has been in ongoing talks for some time, but couldn't be closed before the definitive terms were laid out. That has now happened. Based on the discussions I've had over the past few hours, I believe the odds favor the funding taking place within the next couple months, enabling the project to start in Q2 as discussed in the press release. If so, I also believe that my financial model will play out to an extent, leading to a significantly higher share price in the months ahead."
Gomes wrote the above propaganda more than three months ago on a public website. Since then, the stock has outright collapsed. Secondly, what exactly makes Gomes a good judge of the odds relating to the occurrence of an event? Gomes has been wrong on predicting odds of events virtually every time since he started recommending stocks at PTT Research. But now all of a sudden he has gotten good at handicapping? What a joke.
Tisk, tisk. Poor little beach squatter is getting upset because this stock is down over 50% since Mark Gomes whispered visions of gold and rainbows in his ear. Now he wants to take his rage out on me, because he can't come to terms with the reality that he got suckered by his internet guru. Yes, what we have here folks is a clear case of misdirected rage. If only Mr. Beach Squatter had listened to me from the beginning, he could have saved himself a world of pain (and more to come).
Hey beachbum, everything I post is fact. There are no gray areas. I simply state the historical truth. So if you can't handle the truth, maybe you don't belong in this business. Unless of course your business is working for a boiler room website that pumps and dumps gray sheet stocks like ITMSF. Lol!
#2 -- Last year, Gomes said the company would not need to take on additional debt because the SDI contract was coming soon, and the upfront payments would offset their operating costs and pay down their existing debt. In fact, the opposite has happened. The company is still operating in the red and in fact they had take on a lot more debt since Gomes made that terrible call. The recent $5 million in added debt caught Gomes totally by surprise, and he just sweeps it under the rug as if nothing happened. Meanwhile, his initial value proposition has been degraded substantially, and he acts as if everything is going as planned. Sorry, it's not.
"He only reiterated what management said, which at the time is what they believed."
That's incorrect. Gomes was telling his readers that he had proprietary information from his "experts" that the other big deal was going to close before the end of 2015 as well as the first deal. Gomes likes to tout his "experts", yet he never tells us who they are, or if he's just making this stuff up. Either way, he's full of garbage, and I can't believe people still put faith in him after he took everybody's money and closed down his paid newsletter service without giving refunds to his lifetime subscribers. That was just morally wrong. I don't know how that guy sleeps at night.
Let's go back to the very beginning. When he first picked this stock last year, Gomes said that two huge SDI contracts with close by the end of 2015. Here we are in the middle of 2016, and still waiting for the first contract to close. That's why this stock is down over 50% from the time when Gomes made that statement. He pumped the stock to new highs based on that statement, but the facts did not deliver. Now everyone is just praying to break even. Classic Gomes.
Has anything Gomes said about this stock in the past year ever come true?
I'm here for a reality check. Why are you here? To apply what you learned at Trump University? Lol!!!
Lol!!! Gomes' idea of a "deep dive" is to sit in his lazy-boy and replay management's conference call and take notes. That's it. Just believe everything management says about the future without ever holding them accountable for past failures.