SNWT Has Major Solid Revenue Growth Drivers
- For the fourth quarter (Dec), SNWT expects revenue to exceed $800,000, or more than three times the revenue generated in the third quarter, driven by rapid growth from SNWT’s internet marketing initiatives and initial success from the sales and marketing strategy at trade shows and industry events.
- Based on the above recent developments (2, 3 & 4) it is reasonable to estimate 2010 sales to be in the $5mm range and trending upwards.
- Looking into 2011 its seems reasonable that SNWT will extend its growth plan and though internal growth and strategic, accretive acquisitions could achieve revenue in the $10mm range, with a run combined run rate by June 2011 of $15mm in annualized sales.
- In addition, SNWT’s with success pattern coming out of the consumer recession and with SNWT"s. SNWT could attract other (profitable) industry participants who want access to public markets. There are 4,000 dealerships in the country who could also benefit from SNWT’s success pattern, according to SNWT management.
Top 6 SNWT Growth Drivers
1. Certified Master Dealer for Ruesch Rhino Turbo Utility Terrain Vehicles (UTVs)
San West has received certification as a Master Dealer for Ruesch Rhino turbo utility terrain vehicles (UTVs) which are manufactured by Ruesch Motor Company, which extends throughout Orange County and San Diego as well as throughout the border cities in California next to Arizona.
Moreover the company’s products have an online sales presence at merchantdirectdepot.com and through Amazon wherein it sells its own products and resell others through strategic partnerships. With the immense growth in the online usage, the company would able to further boosts to its business expansion.
2. Solid Organic and Inorganic Growth
In order to build a significant position and expand its business, the company has shown a respectable track record of acquiring number of synergetic companies. Companies that have successfully employed the "Rollup Strategy" have been tremendously successful.
Watch for SNWT to turn into a mega profit trade if the Company implements an aggressive "Rollup Strategy" and expands their presence in the southern California retail market.
In August 2008, the Company acquired 100% outstanding stock of Buggy World, Inc. a
3. BuggyWorld Involvement– Initial Growth driver
In August 2008, the Company acquired 100% outstanding stock of Buggy World, Inc.. Buggy World is the exclusive authorized sales, service and parts distributor for the San Diego County with a factory trained staff that can answer all product and service questions. The most important point is that it is located in Santee, California, is Company’s primary location to sell buggies, modification parts, and accessories for off-road buggies built in China for the U.S. market. After this acquisition, the Company is poised to show high growth in its business. Buggy World currently has two retail locations in San Diego County California as well as a growing Internet presence. Buggy World has a strong customer base that will add to Company’s network of clients as well as market share of off-road vehicles.
4. Impressive Revenue Growth
During the three months ended June 30, 2009 , company’s Net Revenue increased to $150,098 from $14,361 in the same period of the prior year, growth of 945%. While Net revenue for the six months ended June 30, 2009 was $329,521 and $24,685, a growth of 1235% largely to the inclusion of Buggy World sales in 2009 as a result of its acquisition in August of 2008.
For the Quarter ended June 30, 2009 Gross Profit stood at $$45,097 against a gross loss of ($11,426) in the same period of the previous year. Gross profit for the six months ended June 30, 2009 and 2008 was $110,641 and -$13,648, respectively.
Given the company’s aggressiveness on its business policy, the company is expected to show much better growth in its top as well as bottom line.
5. Experienced Management Team
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