Shades, I have not done a background check on every individual, so I have no opinion one way or the other, at this time. One does not paint themself negatively, so it requires independent verification. I have not spent much time looking at RMCW because my limited interest lies in Morgan, the financials, and the SEC. Roland's business past has been listed here via the status of his former companies and their demise.
Penny stocks are interesting to follow. The hope is that the stock will be the next Microsoft, or an IOM squeeze play. Fundamentals are not closely followed, and seldom does one hear, the company is moving forward, it's strategic and business plan are working and it is growing... Sales are always going to leap forward by the thousand percentile, profits are going up sky high,forget about what normally occurs in business, this one is special...
The company has previously advised the shareholders that there were
$12,000,000 worth of garment business for the year which we will expect to see on the financials, (3 plants running at capacity)
it now has $30,000,000 of backlogged orders of water. From a business standpoint, I do not understand this. The company previously did not ship water on a regular timely basis to Asia. Alex advised me that they would ship when an order was received. Months could go by before another single container was ordered. The distribution of sales obviously is not large scaled, at this time, nor historically. This means the company must have new distributors on line to increase distribution.
A working example to consider. I do not represent these figures to be accurate, but they will illustrate the magnitude of the backlog, and the quantity of product that will be hitting the shelves.
If we consider that a container has a gross weight of 45,000 lbs, and we do not give a tare weight to packaging, and just consider water weight, each container would carry approximately 5625 gallons of water. (Water weighs approximately 8 lbs per gallon, milk 8.6 lbs)
To be conservative, I will use $2.00 per gallon as the selling price.
That gives us 15,000,000 gallons of backlogged orders. (What is the bottling capacity per hour at the plant?)
That would then give us approximately, 2,666 containers worth of orders backlogged. How many containers were sold in 1997? How many work hours are required to fill the $30,000,000 backlogged order?
The company also has other customers to service and schedule in their production.
How is the company going to handle warehousing of empties, boxes, tape...and finished product in as I recall, only 8,000 sq. ft? Their production line is also in that area, bathrooms, office...
Why did someone place such a large order? The company has not shown it can meet the requirements until the new plant is under way. Most buyers would not commit until they know there will definetly be supply. The buyer obviously has distribution requirements to its customers to meet.
These are areas which would be helpful for us to understand. |
