Post by
Pachuko on Dec 16, 2021 2:29pm
no shorts no service
This doesn't need shorts to drive it further down. When you add a partner to distribute, sell and service your product you are giving away profit margin. That diminishes the share value.
The only hope is some offer from Daymak to purchase what is left here that gives this a higher value but why would they do that when they can take over without anything in the way. ACDC just gave up exclusive distribution rights so what else do they have left? There is no actual value to the company any longer.
Comment by
Hotdoger on Dec 16, 2021 2:54pm
Increased distribution increases profit margin share value. Daymak is not the only potential purchaser. You're in the same class as Kingcow.
Comment by
Pachuko on Dec 16, 2021 3:06pm
So your understanding is that they make more money off a sale by paying someone else to distribute sell and service the product? I understand the logic that maybe just maybe Daymak might sell a product as it has proven that ACDC can't but they make less per sale which is an erosion of margin. As for other suitors please name one.
Comment by
Hotdoger on Dec 16, 2021 3:29pm
I think it's your understanding that needs questioning. You think if Whole Foods sells a box of Cornflakes it hurts Kellogg's stock price? Or if The Bay sells a pair of Levi's it hurts Levi's stock? what are you talking about.??? Access to distribution is essential and of course someone gets a piece of the action. Lol how old are you? WHO ISNT A POTENTIAL CUSTOMER!!???
Comment by
Hotdoger on Dec 16, 2021 4:20pm
I think your confused about the difference between distribution rights and distributor.