I don't have nearly enough insight to even conside
Post# of 105
I don't have nearly enough insight to even consider those calculations beyond the basics, which would be way off base probably. $690k in sales for 2011, considering there wasn't a "retail" store open tells me that even with a limited number of 3rd party outlets for their product, it's being accepted. For instance, We know for sure that product was available at the Hotel, the US Embassy, and through direct to door delivery with FREE shipping in China. Now we'll have build-out costs, added labor, and store overhead as additional expenses to contend with. But now, having a storefront will dramatically increase the name/brand recognition. Then, what are the tax burdens of both the US and China. Build out expenses would be deductable BUT with a leased location you don't have depeciation of real property to soften the blow. It's going to take a very astute money manager to fund all the suggested growth and keep the profit/loss in a reasonable range. I have confidence in the management that they can and will find that balance as quickly as humanly possible though.