The message board bashers/day traders have continued to scare away potential investors, even though the management team of SFIO continues to meet with various worldwide distributors to discuss the potential of RE/AL. I think it is funny that day traders are posting comments like “bought in at the end of last week hoping for news, didnt get any so im selling this junk”, because the long term shareholders understand that success within the nicotine industry does not happen overnight.
I honestly don’t know what the daytraders were hoping for in the short term, because competing with the likes of Phillip Morris and R.J. Reynolds needs to be carefully accomplished over time. If the company tied up most of their money in ordering too many starter kits/filters they would risk having stagnant inventory that needed a large amount of storage space (that would need to be rented for a steep price). I fully agree with the idea of entering the U.S. market with a small sample size, because it gives the company a chance to analyze the feedback/results from a limited sample size. If they sold 20 Million starter kits in 2 days and then found some form of deficiency, the name and brand of the company would be severely tarnished.
The product needs to be meticulously rolled out over the next 6 months- 1 year, with each shipment increasing in size and frequency. The company needs to look into renting a storage facility of some kind to store inventory, because they should continue shipping orders on a regular basis regardless of the day to day revenues. I am confident that an established distributor of some kind will agree to take care of the storage/supply/marketing duties in exchange for half of the revenues/profits/etc. (as an example), and I think that is a realistic deal that could benefit both parties over the long run.
Overall, I am sure that most of the long term shareholders are holding tight, but I want to encourage new shareholders to give the company more than a week or two before selling. This is not the type of industry that allows for astronomical growth over night, but over time the company can efficiently grab 0.5-1% of the worldwide market. Honestly, anyone hoping for news of a Phillip Morris buyout/etc. this month needs to sell their shares to someone that knows what to do with them, because these unrealistic expectations quickly lead to disappointment. I am happy with the progress so far, and assuming that there are no further issues with customs I expect this stock to make a lot of people a lot of money.
