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

To: Dnorman who wrote (1850)	9/9/1998 9:51:00 AM
From: KSully	Read Replies (1) \| Respond to of 2452

Dnorman, Good Post. There is "time enough" regarding TCBG. The TCBG story has stood the test of some very good D&D from a number of posters. The TCBG investment, however, requires much more information and D&D. Dilution of common shares outstanding is a distinct concern going foward. Relying upon other posts with respect to the 1 million preferred shares outstanding with 24 votes per share as opposed to 1 vote per share with common. Well, do the math. 48 million common shares can be issued/be outstanding where and with the preferred shares, Jon would still maintain 50% of the votes. Jon might very well hold 10 million common shares. Being a non-reporting company, it is more than difficult to ascertain exactly what management is doing with respect to the common shares. Are they buying or are they selling? What about options and incentives? The cash tender offer for Juicy Juice heightens the potential dilution concerns going forward. The best information presented thus far does not support a cash tender offer (ie: $250K in cash?) without at least some dilution. There was a post sometime back indication the possibility of raising cash through a 2 to 3 million preferred share offering. Infact, it is my opinion that it is the concerns of possible dilution that has served to weigh down the stock price (if one was to discount the traders and market makers). TCBG lost some support after the Juicy Juice deal was announced. Not along the lines that such an acquisition would not be benefical to the Company going forward. Rather,due to the lack of information as to where the cash is comming from and whther or not the cash currently exists. The story regarding TCBG requires some confidence building events by the Company. Such confidence building events involve and entail little things like product delivery. Right now, it appears as though there have been some production problems. I would suspect minor problems where the machines required some adjustment. It also seems likely that a number of production delays have been encountered as well. It takes more than just the delivery of a Volpak machine to initiate production. Cliffstar and Sweet Ripe have to make infrastructure investment like end of the line packing, warehouse, and product flow on the floor etc. etc.. These things are both time consuming and expensive. Lastly, there is product outsourcing. Just how much PET Film has to be obtained to just satisfy the Wal-Mart order? The investor can monitor shares outstanding by phoning the Transfer Agent. My suggestion is to not phone just once. Rather, phone on a periodic basis. Atlas - (801) 266-7151 ( SIPOST 1293). In regards to confidence building events - a wait and see approach. A. Patents Pending. Word as to a patent being awarded in regards to the built in straw system would be a confidence booster and can come at any time. B. Product Delivery. Whther this be samples to the investors and or BrainForest in Chicago. Actual product delivery would be a confidence booster. C. Delivery to Wal-Mart. It is my understanding that Wal-Mart seeks to introduce their private label brand this FALL. My best guess as to a introduction into the market place is mid to late November. There are other events/developements that can serve to boost investor confidence in TCBG. One that will reduce investor concerns is audited financials. If the fiscal year was infact adjusted to end on July 31. Than maybe there will be some word as to audited financials sometime in mid to late November. Like some other posters who have expressed thoughts/opinions on financials - I too think that we have to get Wal-mart taken care of first - than investors. In closing, Wal-Mart should be the absolute focus of management and the Company. They have an order to deliver. Management has been overly optimistic in their press releases/conference call comments and have missed stated deadlines as indicated to us shareholders/investors. The deadline you do not want to miss, however, is product delivery to Wal-Mart. What more can be said? TCBG is an OTC-BB stock that is non-reporting and hosts no audited financials. Despite this, I'm of the opinion that the information is there. We just have to dig deeper and never become complacement with out investments/overall opinions. Nonetheless, Wal-Mart, in my opinion, is the key going forward. Once these products are delivered, TCBG can book the revenues. Once these products are placed on the shelves, than TCBG is in business. This, however, might take a couple more months. In the meantime, we need to continue the efforts toward added D&D. Is common share dilution a real concern? If a reverse merger with a shell company - does a prospectus exist for that company? What are the authorized shares, capitalization attributes of the previous shell company etc. etc..? By laws of the corporation etc. etc. Best Regards to All KSully