RE:RE:RE:RE:RE:RE:Can you cope? ;<)trader520 wrote: My 10 cents worth of thoughts re Loblaws etc,,,,,Yes, a contract like that should give the s/p a large bump up....that is also the cue to SELL!!!
Reason being, those large retailers squeeze small (and large) companies to the point where they make pennies on the dollar. THE WALMART EFFECT is a great book to read regarding this subject.
Revenue would skyrocket, costs would spiral, and profits will be minimal. Once markets realise that, the s/p will get dragged down....oops, should have sold!!!
If Loblaws etc atays a smaller (10% to 25%) of their revenue, great....if it approaches or exceeds 50%, watch out.
Oh wait...we were there a few years ago. We sold hemp seads to Korea....great revenue, but pathetic profit....we stopped the sales of hemp seeds to Korea.
Cheers and GLTA
Hi Trader420, we know it’s the one you wanted!
A great perspective with regards to your comments. Let me offer an Alterna-tive view.
No one is really expecting a share price bump from the dealings with Loblaws. It’s all about exposure. If you have tried some of the products, they sell themselves once you are exposed to them. You appear to be implying that NSP is dependent upon the sales via the PR regarding the multiple grocery stores. Yet this really is a small part of the overall Branding Plan.
A couple key notes regarding that.
Your statement would carry weight if NSP was a distributor of said products, trying to make a buck. The difference here is NSP manufactures their proprietary bars. Then package, then ship, they handle every step, they profit from every step. That’s not pennies on the dollar.
You’re also implying to the market that NSP is or will be a SELL, due to “The Walmart Effect” regarding the deal with Loblaws. Btw, so you’re not misinformed. I implied it was Loblaws when they made the announcement. If you read the article, you will see it’s the Grocery Chain, not the distributer. I did that to see who was paying attention. The announcement was Grocery Stores, not distributors. Sure, they own the store, but that’s not the discussion nor the details of the PR! So, to say “those large retailers” will squeeze pennies on the dollar. Who are we referring to? Walmart? Not in the PR. Loblaws distribution? Not in the list. Everyone else? Exposure.
So based on your views, if NSP has a revenue larger than 25% related to the PR surrounding the Grocery Stores mentioned. You should SELL… But you do realize NSP is looking for exposer from this, not revenue? Revenue is a bonus. That they are dedicated to building a Brand. Sears sold off “Craftsman” for 900 million, a brand, not the ratchet.
You mention the Hemp Sales, being unrelated to anything current. You must not realize that was also exposure? What followed that exposure? Acquisitions. They unloaded excess Hemp Seed for exposure and even made a dollar or two but more importantly, if you didn’t know who NSP was then, you would now. It was never about the revenue. It was about the next move and how to finance it.
Sorta like the designer that released Sandy Hook and Columbine Sweatshirts with bullet holes in them. Is he expecting a sales bump according to your logic? No, it’s exposure. Front page CNN, didn’t cost a dime in advertisement fee’s.