Take on PR yesterday.
couple of things - $HJOE did iterate that they have another, HJOE branded product coming out which is what previous tweet referred to about new products. i agree with others that it will more than likely be a c-store/mon and pop store type of product that is either counter placed or kiosk place where it can be individually displayed as a new product. now that they have partnered with the LTCG chips - it makes sense to have a multi product pop up kiosk type display (cardboard based) that could be put up in wide aisles of truck stops, larger c-stores where space is not cramped, part stores, farm and fleet stores, etc.
as far as the partnership with the chips and SMS - i think this is larger than HJOE coming out with another product for several reasons. first and foremost - it shows LTCG IS involved with the brands and has bought into the SMS model. there would have to be considerable back and forth between Shearer's Snacks, SMS, HJOE,and LTCG to bring this together and make it work. i really do not see any negatives:
LTCG generates more revenue for foundation, has wider exposure, and now individual dealers/owners with a vested interested in promoting/staging the product to ensure success instead of the corporate format where it is another "new" product in ever expanding portfolios of the large distributor sales reps line.
Shearer gets to piggy back off of the already successful (and quickly growing) SMS format to increase sales and provide that individual attention to their product line. they probably have setup a small commission structure that is split with SMS/HJOE on a per unit basis with certain rebate tiers setup for large amounts sold (ie - the more volume - the higher the rebate structure at the end of the period/year). while they make less per bag due to commissions - they have substantially less overhead/sales time promoting these on their own. further, if successful, it opens the door for them to work with SMS/ HJOE on other products that tie into the brands.
SMS get the added revenue /pass thru commissions. SMS gets to maximize loads to dealers which lowers overall freight costs per order and reduces cost to serve. the more items that can fill an order- the less freight associated with each item. it further enhances their product offering and increases the "value" of their dealership which will attract more interests from potential dealers.
$HJOE gets pass through commissions and shareholders should get specific validation of the SMS model being viable, growing, and valuable, along with validation of LTCG relationship. while the revenue on commissions will likely be relatively small - the added product offering through SMS makes dealerships more valuable and will drive those sitting on the fence to make the decision to move forward.
Dealers are probably the biggest winners. they have more products (and others directly from HJOE per PR) to offer their customers and since they are already selling the LTCG energy shot - the chips/name recognition cuts down the "sales time" needed to demonstrate his name can/will move product. one of the drawbacks is volume of the product. a case of shots has a small footprint and a master case takes up very little storage compared to a case of potato chips which is mostly air and has a significantly larger footprint. this will make cramped/small c-stores a tougher sell due to limited floor and shelf space (competing products/margin) but can be very attractive for larger store formats that generate significant revenue from aisle or end cap based kiosks. LTCG is immediately recognizable to Main Street America and resonates (even for those that do not find him funny - it will make them look).
the only losers in this deal are those trying to devalue the stock. their argument about this being negative is simply ridiculous. "giving up on shots". "appeasing LTCG to keep license" etc. while this probably took little money beyond the face to face sales time and legal costs associated with formalizing the agreement - it is NOT money they would spend if they didnt have it. it once again legitimizes the company IS growing, it IS generating cash/revenues, and there IS a vision of a "lifestyle" company vs a one product wonder. further $HJOE products will only enhance both the legitimacy and the product selection for dealers/SMS.
i am surprised there is not more buying interest. not the stock taking off to old highs but from those current shareholders "waiting" for that buy sign or "confirmation" and those former or curious investors waiting for the same. at this point - what do you need? why risk waiting like everyone else for the official SEC filings to confirm what you are seeing day to day (revenue generation and growing company)...? at this point - do you think it is all an elaborate ruse to sell stock? if so - how are the founders/insiders capitalizing on it? prior to non reporting, they had minimal salaries, were loaning company interest free to low interest to the company that was NOT convertible (typical OTC scam to show insider "faith" in the company when they provide high interest loans that are convertible).
casey has used TBEV as an example. not only are they back trading at $0.0002-0.0003 - the company quietly put out an 8K awarding the two primary founders/executives 100MM shares EACH for meeting certain performance goals - one of them being creating/launching a new flavor. really...? after the monster R/s - they are going to casually grant themselves 100MM each as an "atta boy" for launching a new flavor that isnt available? compare that to the route HJOE took. no R/s. no increase in AS. using valuable cash (that they could be using to line their own pockets) to fight back against KBM and dealing with the constant short/bash attacks. while filings arent available to validate - the company has used official dissemination sources to confirm they have NOT sold any stock. if it turns out they have or used some back channels to skirt the issue - they will be facing civil action where they have adamant language to the contrary.
so - when does all of this activity: dealers doing local shows, concerts, SM, billboards, posting store locations, vehicle wraps, etc; company increasing product offering, driving foreign markets (Canada, Europe, SE Asia/CK, Austraila); and now teaming with complimentary brands to enhance both companies' product offerings - translate to "proof" ahead of formal filings...? as i and others have stated prior, as this become more and more "real" to the earlyadopters, they will buy instead of waiting. as the price starts to creep up, those that are OK in the gray areas will buy. those that need everything in black and white will be left chasing when it does become official.
right now, based on SSS some dealers have provided, the $500K LTCG sales, the dealership fees (40-50 * $24-100K depending on market size and growing), vending coming online, and CK and Canada sales to be starting - i think the $3-5MM the company targeted last year now becomes very realistic. yes they got a much later start getting the traction. but now that they have everything (for the most part) settled other than KBM - they have been able to focus on the business and the results are able to be seen. if one is willing to look.
there is already familiarity with the LTCG name with the energy shot so they have less "sales" t
couple of things - $HJOE did iterate that they have another, HJOE branded product coming out which is what previous tweet referred to about new products. i agree with others that it will more than likely be a c-store/mon and pop store type of product that is either counter placed or kiosk place where it can be individually displayed as a new product. now that they have partnered with the LTCG chips - it makes sense to have a multi product pop up kiosk type display (cardboard based) that could be put up in wide aisles of truck stops, larger c-stores where space is not cramped, part stores, farm and fleet stores, etc.
as far as the partnership with the chips and SMS - i think this is larger than HJOE coming out with another product for several reasons. first and foremost - it shows LTCG IS involved with the brands and has bought into the SMS model. there would have to be considerable back and forth between Shearer's Snacks, SMS, HJOE,and LTCG to bring this together and make it work. i really do not see any negatives:
LTCG generates more revenue for foundation, has wider exposure, and now individual dealers/owners with a vested interested in promoting/staging the product to ensure success instead of the corporate format where it is another "new" product in ever expanding portfolios of the large distributor sales reps line.
Shearer gets to piggy back off of the already successful (and quickly growing) SMS format to increase sales and provide that individual attention to their product line. they probably have setup a small commission structure that is split with SMS/HJOE on a per unit basis with certain rebate tiers setup for large amounts sold (ie - the more volume - the higher the rebate structure at the end of the period/year). while they make less per bag due to commissions - they have substantially less overhead/sales time promoting these on their own. further, if successful, it opens the door for them to work with SMS/ HJOE on other products that tie into the brands.
SMS get the added revenue /pass thru commissions. SMS gets to maximize loads to dealers which lowers overall freight costs per order and reduces cost to serve. the more items that can fill an order- the less freight associated with each item. it further enhances their product offering and increases the "value" of their dealership which will attract more interests from potential dealers.
$HJOE gets pass through commissions and shareholders should get specific validation of the SMS model being viable, growing, and valuable, along with validation of LTCG relationship. while the revenue on commissions will likely be relatively small - the added product offering through SMS makes dealerships more valuable and will drive those sitting on the fence to make the decision to move forward.
Dealers are probably the biggest winners. they have more products (and others directly from HJOE per PR) to offer their customers and since they are already selling the LTCG energy shot - the chips/name recognition cuts down the "sales time" needed to demonstrate his name can/will move product. one of the drawbacks is volume of the product. a case of shots has a small footprint and a master case takes up very little storage compared to a case of potato chips which is mostly air and has a significantly larger footprint. this will make cramped/small c-stores a tougher sell due to limited floor and shelf space (competing products/margin) but can be very attractive for larger store formats that generate significant revenue from aisle or end cap based kiosks. LTCG is immediately recognizable to Main Street America and resonates (even for those that do not find him funny - it will make them look).
the only losers in this deal are those trying to devalue the stock. their argument about this being negative is simply ridiculous. "giving up on shots". "appeasing LTCG to keep license" etc. while this probably took little money beyond the face to face sales time and legal costs associated with formalizing the agreement - it is NOT money they would spend if they didnt have it. it once again legitimizes the company IS growing, it IS generating cash/revenues, and there IS a vision of a "lifestyle" company vs a one product wonder. further $HJOE products will only enhance both the legitimacy and the product selection for dealers/SMS.
i am surprised there is not more buying interest. not the stock taking off to old highs but from those current shareholders "waiting" for that buy sign or "confirmation" and those former or curious investors waiting for the same. at this point - what do you need? why risk waiting like everyone else for the official SEC filings to confirm what you are seeing day to day (revenue generation and growing company)...? at this point - do you think it is all an elaborate ruse to sell stock? if so - how are the founders/insiders capitalizing on it? prior to non reporting, they had minimal salaries, were loaning company interest free to low interest to the company that was NOT convertible (typical OTC scam to show insider "faith" in the company when they provide high interest loans that are convertible).
casey has used TBEV as an example. not only are they back trading at $0.0002-0.0003 - the company quietly put out an 8K awarding the two primary founders/executives 100MM shares EACH for meeting certain performance goals - one of them being creating/launching a new flavor. really...? after the monster R/s - they are going to casually grant themselves 100MM each as an "atta boy" for launching a new flavor that isnt available? compare that to the route HJOE took. no R/s. no increase in AS. using valuable cash (that they could be using to line their own pockets) to fight back against KBM and dealing with the constant short/bash attacks. while filings arent available to validate - the company has used official dissemination sources to confirm they have NOT sold any stock. if it turns out they have or used some back channels to skirt the issue - they will be facing civil action where they have adamant language to the contrary.
so - when does all of this activity: dealers doing local shows, concerts, SM, billboards, posting store locations, vehicle wraps, etc; company increasing product offering, driving foreign markets (Canada, Europe, SE Asia/CK, Austraila); and now teaming with complimentary brands to enhance both companies' product offerings - translate to "proof" ahead of formal filings...? as i and others have stated prior, as this become more and more "real" to the earlyadopters, they will buy instead of waiting. as the price starts to creep up, those that are OK in the gray areas will buy. those that need everything in black and white will be left chasing when it does become official.
right now, based on SSS some dealers have provided, the $500K LTCG sales, the dealership fees (40-50 * $24-100K depending on market size and growing), vending coming online, and CK and Canada sales to be starting - i think the $3-5MM the company targeted last year now becomes very realistic. yes they got a much later start getting the traction. but now that they have everything (for the most part) settled other than KBM - they have been able to focus on the business and the results are able to be seen. if one is willing to look.
there is already familiarity with the LTCG name with the energy shot so they have less "sales" t
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