There's been a lot of grumbling about "Glossy Brochures" and...

There's been a lot of grumbling about "Glossy Brochures" and excessive hype by Boonen and Co, recently. Dire warnings to stay clear of this stock have been issued, perhaps with good intention, as there has been plenty of pro STI talk of billions in the making that needed balancing out.

I'm interested in the numbers quoted by the company and people's responses to them, whether or not they are realistic or pie in the sky stuff. I've seen it all - nearly got sucked into PLT with all their lofty promises, so I can understand why most people would avoid a stock like STI like the plague - until the money starts rolling in.

Looking at the target break-even by STI - July 2010, I imagine Boonen is pretty confident about the North American launch. (That's the only way I can explain his decision to buy the property in Sydney!) He also mentioned $30 million P/A by 2010 year end. Given the high profit margins for network marketing, (I would guess 20%)STI-Zodiac could be looking at 5-6 million gross profit P/A?

Just looking at the network marketing side of things: If you take 2500 sales consultants, and each agent sells say $100 per week in product, (Not difficult, if you are passionate about what you are selling)you are looking at $250K per week - or 3 million per quarter. Can anyone see why Boonen is enthusiastic about network marketing?

We have LOI's for Brazil and Mexico, and hopefully registration allowing sales of the botanical products into those countries by mid- 2010. It's anyone's guess what sales will result but hey it's fun to speculate:-) $2 million per quarter sound reasonable, given the numbers comming out of Mongolia?

Now I rate the animal growth product as having far more potential - it's a proven and market-ready product that will soon begin sales in South Africa and elsewhere world-wide. I don't think it would be difficult to shift $5 million per quarter, from the end of next year, possibly much much more.

So... My numbers for gross sales of all product come to $40 million P/A from December 2010. No billions here, I'm afraid but pretty good cracker for a tiny company with a MC of around 10 million dollars, don't you think?