SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : The Children's Beverage Group (TCBG)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Stephen Goldfarb who wrote (816)7/12/1998 4:09:00 AM
From: RJC2006  Read Replies (1) of 2452
 
At some point a fact must be faced and that fact is that you understand that simply announcing a unit manufacturing estimate is far from providing a profit in reality. Outside of just the things you have listed as impacting earnings it also should be noted that increased manufacturing capability also means increase costs. It should be mentioned that a company can buy, lease or borrow all the manufacturing machinery in the world but where those machines operate has a very definate impact on earnings. Is the new increase in unit production being housed in current facilities or will more space be required. More space means more expense. I realize that it sounds like a trivial issue but cost is cost.

Your alert as to revenue sharing must also be analyzed. Are these pure earnings based on typical expenses or are there other contractual obligations that we don't know have all the facts on. If the company is making deals against future earnings then until those questions are answered it is a somewhat risky venture.

I don't have enough information to rain on anyone's parade nor do I really want to but I think you have brought up some very pertinent and fundamental questions that beg analysis.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext