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

To: Tom Allinder who wrote (1131)	7/26/1998 3:43:00 AM
From: mark cox	Read Replies (3) \| Respond to of 2452

I bought more on Friday. I take it that the projected $10 million + in revenues for 1999 is just from TCBG's existing BrainForest products and the other new products soon to be launched. I have a question about the royalties. Will they receive a royalty payment on each pouch that is used to package all private label products manufactured with the 'rip it sip it' pouch? Does anyone know how much they will receive per pouch? This royalty scenario seems like it would be pretty near 100% margins because what they are selling is the use of a patent pending, an intellectual asset. TCBG doesn't have any manufacturing facility so Cliffstar will be producing the product for them. So will TCBG have an inventory, for instance sugar, fruit juice concentrate, spring water, pouches and packing/shipping materials? Or will Cliffstar do all the producing and just pay TCBG their $0.16 per pouch? Another question is if Kraft and TCBG are the only ones who can produce stand up pouches, then how is Minute Maid going to sell their juices in stand up pouches? They say they are going to launch a big roll out in the 4th quarter. Seems like they would have to deal with either Kraft or TCBG doesn't it? Or maybe they are going to challenge Kraft next. I have never purchased any of those box or pouch juices so I took a look at them in the supermarket the other day. The Capri was the only pouch juice that I saw. But in the boxes I saw, Mott's apple, Libby's Juicey Juice, Yahoo chocolate drink, Minute Maid and Hi C to name a few. It would be nice if TCBG could sign deals with all of these companies. I called IR again on Friday but only got an answering machine. I wish there were more posts here that contained some actual data. Small talk about how this stock is poised to take off and this company is going to do great is fine but specific actual facts would be more informative. I'm sure there are many new investors hearing about TCBG every day and they will probably come here first to get some info, there is no forum at Yahoo or Motley Fool. According to Scott at IR, we should see some kind of small offering for approx. $2 million in the next couple of weeks to pay for 4 more Volpaks, which would bring the number to 10. I was told that it takes Volpak 45 days to produce a 240 machine. Can they produce more than one at a time? If not, we're limited to 8 new machines per year. There will be another press release very soon naming the accounting firm chosen to do the audit at the end of the month. Also that there will be even more announcements soon. I have a correction to make. Back on post # 1057 I put out some estimates based on the facts that I know. I made a mistake and used $4.8 million in revenues per machine instead of the actual $6 million per machine. So instead of an estimate of $9.60 per share 20 months from now it would be $12.00 This is of course a very rough estimate only based on what I know right now. Mark