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

To: Jaste who wrote (1137)	7/27/1998 1:00:00 AM
From: Steve Cox	Respond to of 2452

Jaste Your statement: Now TCBG's package has the definite upper hand over Kraft's due to the fact that it's guaranteed not to spill upon opening, and it has a built in straw. Can a patent be granted with this vague statement, GUARANTEED NOT TO SPILL? I was wondering why Minute Maid or other big players with their access to design engineers couldn't come up with a solution that would be comparable to TCBG but not infringe on the patent. If what you say is true then this will be very big. Just got in Friday. Don't usually look at BB stocks, but this looks exciting. Walmart and WinnDixie named, 8 top companies yet to be announced since company stated 10 top companies interested. I remember when my son was about 5 yrs old he asked me to insert the straw in a juice package,which was first tightly wrapped in cellophane, into the package because he was unable to puncture the foil access. Even I had to press hard. This could be hot. Steve

To: Jaste who wrote (1137)	7/27/1998 1:09:00 AM
From: mark cox	Read Replies (1) \| Respond to of 2452

Thanks for the info Jaste. It staggers the mind to think of the potential for TCBG if they were to sign deals with some of the largest drink producers in North America from a royalties point of view. The margins from royalties probably won't be 100% but I would think that they would be in that ballpark. Imagine the earnings that would be generated from royalties with no costs of goods sold and the cash flows with no inventory. My rough estimate of the $12.00 a share wasn't for 1 year. It is for 20 months. I don't have much to work with in making any accurate estimates. IR told me that the 10% juice net margins would be 15% and the spring water would be 20%. I would 'guess' that royalty net margins would be 80%+ I was told that they will be buying another 4 machines for a total of 10 and that each could produce $6 million per year. Of course that would be with them running at full capacity all year. My estimates used a net margin of only 10% and a P/E of 50. In 20 months TCBG could easily be posting growth rates for both revenues and earnings in the triple digits. Also I don't think they would be purchasing 4 more machines if they didn't think that they would need them. If they buy even more early next year that would speak volumes for revenue potential. I will try to contact IR again on Monday to find out more about royalty payments and Minute Maid/HI C. I can't wait till they become a reporting company so I can crunch numbers in the financials. Once they do become reporting I bet we see a whole new class of investors come into this stock, and again when when they get off the BB's. One more question. Is TCBG still involved with New Wave Beverage? Are you going to sign up for membership here on SI? Mark