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Non-Tech : The Children's Beverage Group (TCBG) -- Ignore unavailable to you. Want to Upgrade?

To: Earl Falwell who wrote (375)	6/28/1998 3:06:00 AM
From: Stephen Goldfarb	Respond to of 2452

Earl: I appreciate the effort you are going in order to get the fullest information about the company. In a way, one needs to know more in order to ask specific questions. Nevertheless, it would be helpful to know what the risks are involved of this startup venture. For example, is the company adequately financed? If additional financing is required, how will it be obtained? What is the payment arrangement from the customers? How reliable are the Volpak machines? What is their cost, and the ultimate effect of their expense on company earnings? How much time before similar competing beverage packaging is sold by others? Are the contracts with WinnDixie, WalMart, and others on a trial or permanent basis? What are realistic production and sales ranges for the coming year? Are they producing now? At what capacity? Etc., etc. I've been told that Volpak is financing purchase of the machines. The company reportedly has first refusal rights for a particular model of the machine. I assume that means competitors may purchase the machine if the company is not a current buyer. The company reportedly will earn 20% or thereabouts pre-tax profit on sales. Steve