Mr K.....Good report, these are my concerns:
1. Cash....takes BIG bucks to advertise a product, ALL major retailers expect co-op ad $ today, along with return rights, 60 day terms. 50,000 shares won't cover this IMHO.
2. Press releases very vague, " first two months production sold out",
When I quested sales mgr about what capacity was, very evasive, keep secrets from competition, etc., I don't buy that.
3. Everyone on thread talks about Wal-Mart, Toy-R-Us, etc., SCTI can have the greatest product in the world and if these retailers don't believe they can take care of their orders, they will never happen. Retailers want high turns these days, and when the fad dies, they want to charge it all back and they don't pay you unless you take it back. That is why company needs South America outlet.
4. Imports are done with letters of credit which tie up funds until the ship comes over and the company gets paid. Can be from 3-6 months, back to cash flow problem.
I have been there and done that...any thoughts???? |
