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Non-Tech : GBUR(Wholesome&Hearty Gardenburgers)

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To: Robert Graber who wrote (86)8/13/1998 11:13:00 AM
From: Sir Auric Goldfinger  Read Replies (1) of 140
 
The Couponing could be a decisive factor here. If Worthington gets real aggressive of coupon price, it would put a dent in GBUR revenues at the chain store level. The thing about the Catalina Coupon Solution is that you can actually draw the indifference curves that economists always theorize about.

In this case they could be predatory with a very high rate per coupon over a brief period (I think the couponing contracts are 6 weeks at a time) and it would then drain what miniscule cash GBUR has left.

The CIBC report has a really thread the needle cash flow pro forma wherein the analyst fudges his cap ex down by 300% to make the cash flow work.
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