Bob61 :
But... Keep in mind that...
so far, they have paid out 20 million in rebates.
Some of the mutual funds have done over 100% this year alone. On average, they get about 30% a year.
CR has been up for like a year now.
Now... 20 million in rebates. $90 binoculars can be bought for $30. We can probably safley assume they cost walmart $20....
So... Assume CR pays 25% what they sell it for. So, that's 5 million in net cost.... so they need a way to convert $20M into $25M in 4 months to pull any profit.
Now... Possibly, CR may be paying off old rebates with the new orders. Lets say, that after CR gets their first order, they pay them out 4 months later. They pay out the outstanding rebates with the influx of money. Assume they sell (20/3 - extra) = 5M the first 4 months.
If they keep on paying off the old rebates with new money, they will ALWAYS have this 5M in a savings account. If it is one of the "good" mutual funds, that is... 5M profit in one year. So, they break even.
But..... this is only a guess. I just need a little more crack, and some rolling papers, and I'll give you the whole story.
But... it does show that something like this COULD work.