OTCPK:CNZCF - Post by User
Comment by
Slyincalgaryon Sep 20, 2017 12:44pm
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Post# 26720313
RE:RE:RE:RE:RE:NR
RE:RE:RE:RE:RE:NRPhantom, I am actually cool being a wholesaler/distributor of another zeolite find. The deal CNZ made with KMI is perfect for a company at this stage in that they only buy product if they have sales for it...no risk to operational cost increases, freight increases, staffing cost increases, warehousing increases etc. It also gets them past the stigma the market has that CNZ is capped at selling 50k tons per year, this opens them up to selling much larger volumes of zeolite per year. Some of the most profitable business in the world are distribution companies, so much so that many of the large ones stay privately owned.
CNZ had access to deposits in BC only until the KMI agreement, it is very obvious that they can't be price competitive selling into a North American marketplace from one location only. The alternative to CNZ doing this kind of deal would be going out and buying mines in other geographic areas, but that would entail large scale dilution to all shareholders and high costs to buy equipment, warehouses etc. At this point, CNZ is much better off to build revenues in this model and when they are solidly on their feet, then try to acquire the mines/zeolite properties. Zeolite is in the early stages of sales in North America, getting yourself into a large overhead/cash burn per month situation would be a giant burden for the company/shareholders to carry on a quarter by quarter basis.
You might be in a good company eventually dude, you were the one coming on this BB touting the success of ABR....I did not go to your board to trash it. It is not my style of investment, too early. ABR has one test with a small pot distributor, you came on this board trying to compare it to a company that is selling into 4-5 market segments already and involved in pilot/test programs with both Governments and Fortune 500 companies. Management of ABR also has a sketchy track record so yet another reason I decided to pass on investing in it at this point, and has an almost identical amount of shares outstanding.
I also don't pound my chest telling everyone to buy CNZ or egotistically call myself "the man" haha.....I discuss what the company is accomplishing. All investors need to do their own DD and make investment decisions, anyone who invests based on what someone on a public BB states gets what they deserve.
Only my thoughts
Glta