"If you had any knowledge of the growing worldwide water shortage issue....you'd know the answer to who'll they'll sell the water too.It will be easy"
From recent PR:
"Seawright Springs Premium Natural Spring Water is being offered in the luxury brand category and is available in half-liter and liter bottles."
So you are in effect stating that SWRI has the ability to bottle and SELL roughly 100 bottles per second 24/7 365 days per year. That is, after hauling the water 10 miles to a proposed new bottling facility if they receive a variance for the land use. That should only require about 15-20 water tankers selling for about $150,000 each to get the program off the ground.
In addition you are assuming that SWRI will have the ability to pay upfront for shelf space in stores, have the finances to build a distribution system and advertise their product, build a bottling plant, obtain insurance, purchase a fleet of vehicles, hire office and sales personnel, and be able to compete with other giants of the industry all while selling a product at a "premium" price.
What is really interesting is that SWRI values its building and equipment at under $100,000. Must be a huge operation!
And, with only $2,500,000 in debt their capital structure looks about as promising as winning the lottery.
Whats even worse yet is the selling, general, and administrative expenses which are averaging $100,000 per month to bring in sales revenue of $235 per month. Quite a nasty ratio if you want my opinion. Especially after reading the following quote in the last 10-Q:
"As of September 30, 2006, we had one employee, our chief executive officer and president, Joel Sens. We anticipate that the number of employees will increase in the future. However, given our ability to contract out much of our required services, it is not anticipated, based on the current business plan, that new employees will be hired in the next twelve months. No formal contract for the compensation of Mr. Sens exists as of September 30, 2006, but we may enter into an employment contract with him within the next twelve months."
I believe the previous paragraph pretty much sums up the future of SWRI.
On the plus side, Joel seems to be doing really well with what appears to be take home pay apporoaching $1,200,000 annually for producing $3000 in annual sales...and apparently will be doing this himself at least for another year. That should really bring in the moola!
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