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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (3784)	8/19/2003 5:40:25 PM
From: Crossy	Read Replies (1) \| Respond to of 37387

re: OTC/BB : CBEV (Capital Beverage) $0.21 Well I had a nice phone conversation today with CEO Carmine Stella of Capital Beverages - the Beverage distributor and manufcaturer based in Brooklyn, NY According to him, the company is further deleveraging. If business stays the way it is right now, they would need around 18 months to pay off the rest of their entire debt. Another goal is a refinancing. Interest rates could go down big on this if succesful.. He cited some acquisition opportunities but before anything can be realized here (brands, distribution franchises...) the company's balance sheet needs to be adressed. So deleveraging first, expansion later. It's notable that CBEV had been able to stay in the black despite severely adverse weather conditions in the NorthEast.. And interestingly, CBEV does distribute some non-alcoholic beverages as well, particularly in the Energy Drink category... Finally, it looks like that the brands CBEV owns (the "owned" rather than distributed beverage brands, where margins are of course bigger) are on the books valued by the amount of their historical purchases. This is an intangible, even hidden, asset for sure but an important one, because at least 2 of these brands have enjoyed phenomenal growth over the past 3 years. Right now, the owned brands probably appear to be worth more than $14m if auctioned off and nowhere onthe financial statements is this value being reflected according to GAAP principles... Meanwhile MM's are literally toying with the stock. Spread today was 0.16 x 0.40. What an insult to the MMs participating on the OTC/BB. I hope the company can polish itself up and move over to the Amex soon.. rgrds CROSSY