Mark great find on that article
1) TCBG currently has a lease with an option to buy on volpak machines, not best of terms for tcbg, looking into better means of financing.
2) installation fees probably paid in part by Cliff and Sweet Ripe
for the right to have the machine in their plants.
3)According to Jon D., CEO, have right of first refusal on all volpak 240 machines through the year 2002.
4) Dividend was huge because it is in restricted shares non saleable for three years, good way to encourage long term investors, also stock was killed in december when short sellers found out about volpak's delays in production of tcbg's original machine order. Jon's way of rewarding the faithful who stayed in the stock from $8 to $1.
Jon said in cc if business is good he would use this type of dividend again. i hold mucho tcbg in my pension, 4 more years of 1 for 8 dividends will increase my holdings by 50%. I think it's way better than 2 for 1 stock split because no dilution for 3 years to float.
5) How can we sell to walmart?
in cc jon spoke of four P's
1packaging - tcbg's is unique
2production - superior rates of production speed
3price - 30% below other comparable products
4 profit - 25% more than " "
That article you found was great but is from 1996, either a) marsonn was packager tcbg used last year before kraft lawsuit, jon said prior packager was a disaster and they had big problems and didn't see them as threat. or b) they still have machine but can't produce product due to fact kraft would sue them, only tcbg can produce besides kraft
c) does article ever say they actually took delivery of volpak 240?
Walmart terms of racecar deal are not disclosed due to walmart not tcbg, i believe that walmart payed most of racecar in order to convince tcbg to give walmart product before winn dixie. See winndixie release date before walmart, when walmart saw winn dixie release, suddenly days later tcbg has a racecar and walmart gets product before winn dixie, just a guess here!
Very important, Jon in cc said while he couldn't disclose walmart terms, but once the walmart orders are delivered they become sales, hence revenues, hence tcbg can report revenues of sales and then we should be able to roughly extrapolate pricing to tcbg's customers.
Another huge factor is we don't have monster overhead of a giant production facility, these costs are coming out of cliff and sweet ripe's end of profits, we have what others want, good spot to be in.
Jon says financials out in roughly 30 days, you may want to wait till then if you don't feel comfortable with the risk level at this time
Thank you for your contribution to thread, please feel free to post anytime
Jesse |
