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

To: Stephen Goldfarb who wrote (838)	7/12/1998 11:02:00 PM
From: Peter Prickett	Read Replies (5) \| Respond to of 2452

I called Walters, Scott & Stern ( TCBG's investor relations c.)last Friday. Don't have financials to give out yet. That's still a concern. Did answer some questions I had. Here is what I learned. Subject of course, to my recollection of the conversation and my interpretation. Two machines installed at Sweet ripe in Canada. Up and operating. Should be shipping Walmart in the Chicago area this month.One machine installed at Cliffstar. He said Oklahoma. Did some snooping. Cliffstar does not have a plant in OK that I could find. Do have one in Missouri. Maybe that is what he meant. Machines cost around 550,000 each and these three are leased. Said cliffstar fronted the set-up cost of 600,000 in exchange for restricted stock. Did not say who fronted set-up cost at Sweet-ripe. Postitive spin on this info. Cliffstar is large beverage and juice co. Been around long time. Why would they sink 600m of their $$$ in exchange for stock if they didn't think something positive here? Said company should do around 9MM by year end. Each machine capable of 6MM annually. Looking at getting 6 more machines. Not clear on how they will be financed. From previous posts I understand each machine capable of 30MM units per year. At 6mm of revenue over 30mm units, means TCBG selling price is .20 per unit wholesale. Can somebody tell us what grocer markup from there is likely? Then we can compare to Caprisun and other competition at retail. For example, what is walmart selling its comparable product for now? Still have questions and concerns. Some inconsistencies in the info that is out. For example, was told each machine will do 6MM of revenue. If you read the fact sheet dated 6-1-98 by walters, scot, et al, they are forecasting revenues of 42MM( 4.66MM per machine)on 270MM units (9 machines). This would translate to .16 per unit. So which is it? Sorry to bore you all. But have to do these exercises due to lack of substantive published data. Pete

To: Stephen Goldfarb who wrote (838)	7/12/1998 11:44:00 PM
From: Cavalry	Read Replies (1) \| Respond to of 2452

if any had called scott with investor relations he would have told you the machines are leased with a purchase option. good trading Cav

To: Stephen Goldfarb who wrote (838)	7/13/1998 1:03:00 AM
From: RJC2006	Respond to of 2452

<<One thing I heard is that a company where one of the Volpak machines was to be installed, was willing to take stock in payment for installation. Details are not known. My understanding is the cost of an installation in this instance might be 300-500,000.>>> Well as you say this is something that you "heard" i.e. not completely reliable. Nevertheless, let's take a look at your numbers and what they would mean. If installation were paid for in stock and if current market value were the basis then we're talking approximately 250K shares of stock. That's a lot if you consider that installation of manufacturing equipment may not be the only expense they have to cover with stock issuance. Now, if it is cash well it will take a Walmart or Target contract to recoup it. Either way it points toward a company still in its infancy with quite a way to go toward profitability.