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

To: Frank G. who wrote (1192)	7/29/1998 7:57:00 PM
From: mark cox	Read Replies (1) \| Respond to of 2452

Frank, I was told yesterday that there have been 3 machines in operation for the past two weeks, and 2 more will arrive in 30 to 40 days. So if we add the new 7 that gives us at least 12 machines. I mentioned when I first posted on this thread that I don't invest in BB stocks because it is too hard to find info. After doing enough research I bought the stock. But all the while my fears of BB stocks kept nagging at me and I wondered if TCBG was for real. The biggest reason for this fear was that TCBG just seemed too good to be true. The potential here is mind numbing. I am very happy to say that I no longer have any fear whatsoever that this company is for real. I called Wal-mart and talked to a person in Customer Relations. He wouldn't give me any particulars about the products but he did say that TCBG was developing the products for Wal-mart and we also discussed the Indy car sponsorship. So I will probably be buying TCBG stock for the 4th time tomorrow. The press release states that TCBG will invest $1.5 million for these 7 new machines and Volpak will finance the remaining $3.8 million for 24 months. Does anyone know what they mean by a 'one dollar' buyout at the end? How does TCBG get these machines for $1 and then make an additonal $2.5 million per year in profits? It sounds like Volpak will be getting paid from the revenues generated by these 7 machines over the 2 year period. Then when they are paid for, all of the earnings will then go to TCBG, $2.5 million in earnings sounds like a ballpark figure from 7 machines. This would be a smart move I think because they don't have the resources,( cash ), to be buying all of these machines. This would be a form of financial leverage without adding long term debt or long term dilution. I think that TCBG will be acquiring more and more machines on a continuos basis and that would quickly add up to a lot of debt if borrowed from a bank. Any thoughts on my scenario? Mark