Zaldiva, Inc. (OTCBB: ZLDV)

Zaldiva, Inc. (OTCBB: ZLDV) is poised well to deal well with the worldwide recession. When we reached out to cover this company, we were impressed with the company for a couple of very significant reasons. One of those reasons you will read about in detail in this profile is its “Direct to E-Auction” business which essentially is well explained in this July 28, 2008 press release from the company – SEE IT HERE. Zaldiva is headquartered in Florida, and it is a requirement within Florida to register as an auctioneering house in order to offer a drop-off service to sell client owned merchandise on eBay or similar sites. Most competitors simply do not have the resources or the good name to get this license.

With the economic downturn, this is becoming the most significant revenue and profit center for the company. With the Zaldiva reputation in the business and its Powerseller reputation on Ebay, it is the natural first choice for individuals who need to liquidate their collections for maxium return. For the collectors and buyers, there is no better company to buy from.

We present to your our profile for Zaldiva. We welcome any questions or comments you might have.

Corporate Summary

 Zaldiva is a distribution system unique to the specialty retail industry. The company combines a highly visible brick and mortar location in Ft. Lauderdale, Florida with an e-commerce website and portal which operates in conjunction with a series of ancillary websites and online auctions. This system is the foundation of the company’s business and marketing plan as well as its vision and mission statements.

Zaldiva focuses its product orientation on the comics and collectibles genre of the specialty retail industry. This not only plays to the management’s expertise, but allows the company to operate in an economic subset that is recession averse and not subject to seasonal or market trends. Products that flow through the company’s distribution nodes include, but are not limited to comic books, statues and figurines, DVDs, posters, dolls, action figures, T-shirts, die cast vehicles and automobiles.

The company began operations in 1997 as a specialty retail outlet for cigars and related items. Along the way, Zaldiva added web hosting and e-commerce related services. In and around 2003 the company decided to change its operational structure and focus, dropped the cigar aspects and moved into the comic book and collectible arena.

Nicole Leigh–van Coller and her husband Jeremy have long been collectors of comic books and memorabilia related to comic books and movies. It is one of their true passions and one that they decided to turn into a business. “It is much easier to put your heart and soul into a business that you love, than one which is just about the bottom line,” stated Ms. van Coller. The first few years, from 2003 to 2006 were spent building inventory, acquiring and preparing the building on Commercial Boulevard in Ft. Lauderdale and putting the business structure in place for the future.

It was at this juncture where the management team’s e-commerce experience was truly defined as a value proposition. In web jargon, “stickiness” is an important term. It helps to define how valuable a piece of internet property is by showing how long a visitor stays at the site, and how many aspects of the site the visitor “hits” and or takes commercial advantage of. Potential advertisers like sites with high “stickiness” levels because their messages will be seen more often and for longer periods of time. Also visitors will at some point conduct business. With Zaldiva, the mindset is “how can we increase the time visitors will spend at our location(s) as well as the probability that they will purchase something?” This is why their product lines are as diverse and deep as they are. However, this focus also lead to one of the company’s most promising business nodes – “Direct to ebay.” It came into being when management realized that a definable percentage of visitors with product to sell were leaving without conducting business. After analyzing the visitor’s item, Zaldiva would not meet the seller’s price. Management realized that while they may not be willing to purchase the item at the seller’s price – someone might.

Direct to eBay

The “direct to eBay” feature is a way the company is increasing its distribution scale and keeping more clients at Zaldiva. The company structured an offering where they would do all of the work to offer and sell the item online. Zaldiva then retains a significant percentage of the proceeds. This met with a resounding, positive response and has grown beyond its initial scale. It also maintains the focus of Zaldiva as a distribution system, not simply a retail organization. The company is now actively seeking product to distribute in this manner, both in the area of corporate/retail inventory and automobiles.

2007 was the transition year from formation to business operations. For the first quarter (fiscal) 2008 ending in December 31, 2007, the company’s revenues increased almost threefold from $27,635 to $79,353, with sales a gross profit of $35,840. Based upon the existing model and property structure, Zaldiva can, and expects to increase revenues within 12-18 months to $240 to $300k per quarter. While the company did show an after tax and expense loss of $.02 per share for fiscal 2007, cash increased from $26,827 from the end of fiscal first quarter 2007 to the end of fiscal first quarter 2008 to $62,944. In 2006 the company incurred significant expenses for infrastructure, real estate acquisition and other business building activities. Much of the staff salaries were taken in stock, which for accounting purposes were expensed against income. Much of the current expenses are fixed and while cash flow is positive in terms of EBITDA (earnings before income taxes, depreciation and amortization), the company expects positive earnings per share after taxes, interest, depreciation and amortization in the foreseeable future. As the company does anticipate incurring non-cash and non-income related expenses with its planned acquisitions, this may affect the date where that will occur. However, no acquisition will be made that does not positively affect cash flow and the business plan and structure of the company and/or shareholder equity.

What began as a dream is now a multi-phased, multi-level distribution system, focused on the comic book/collectible specialty retail industry. The upside potential for replication and growth is significant.

Current Operations

Zaldiva purchased an existing structure at 331 East Commercial Boulevard in Ft. Lauderdale, Florida on November 24, 2006. After a total reconstruction of the building, the company is now recognized as the best retail outlet of its kind in Palm Beach and Broward Counties (New Times Reader’s Choice Awards 2007). The company estimates that its efforts have also significantly enhanced the value of the property, which is also fully owned, with no debt/mortgage. The property not only is well placed for retail sales (located on one of Broward Counties busiest streets and three blocks from Interstate 95) it also acts as a major, and free source of advertising with front signage and costumed agents seen by thousands daily during rush hours when automobile traffic is busiest – and slowest. Zaldiva is focusing efforts on maximizing its sales per square foot. One of the company’s most successful marketing programs to date has been its weekly, “Wednesday is New Issue Day.” While new comic book issues come out on Wednesdays industry-wide, Zaldiva adds its own flavor – making the day eventful. The profit margin on in-store products ranges from 35 to literally thousands of percentages. For example: Comic books are purchased from selling clients for one to five cents apiece and then re-sold to buying customers for anywhere from fifty cents to ten or twenty dollars. In-store products are also available online, increasing their exposure and rate of inventory turnover.

Zaldiva has had an online presence since 2001 when it offered specialty cigars, web-development and web-hosting services. Beginning in 2003, the company began to focus its efforts on comic books and pop culture collectable products and moved away from service type offerings. The company currently uses the internet to offer its products either via auction or in its set-price e-store.

In a recent development, Zaldiva has expanded its distribution system to allow for large ticket items, inventory liquidations and other higher-end transactions. The idea came from the desire to keep business at Zaldiva, even when a seller’s price could, or would not be met by Zaldiva. The company decided to allow sellers to use its eBay system to try and achieve their desired price, and Zaldiva takes a cut of the sales proceeds. With its Gold level Ebay ratings (Zaldiva is an Ebay Gold Power Seller), e-frontage and sales experience, this is quickly becoming a significant revenue stream. It is also an avenue the company will be expanding through marketing efforts and initiatives. For example: The company has already sold automobiles using this system, and has approached, with a decidedly positive feedback, pre-owned automotive sales organizations to represent fleet level and lot-sized offerings. 

Consumers in this market do not acquire their books at the popular mega-book outlets such as Barnes & Noble or BooksMart. The reason being that the books are all too often already leafed through, creased and not in pristine condition. Consumers also do not wish to climb over reams of youngsters reading the latest editions while their parents peruse other sections.

Another reason consumers of this product utilize specialty shops over mass market venues is who they are. The typical consumer likes to talk about their purchase with people that understand not only the series they are interested in, but in the collection aspects of the items as well. This is especially evident in the resale marketplace, where the larger stores simply do not carry the items at all. There is an inherent value in being able to see, compare and talk about the 12 cent version of Spider-man with the newest edition with someone who not only has the 12 cent version available for comparison, but is fluent on the storylines, current valuations, collectible value and “speaks the genre language.”

A key aspect to why specialty retail outlets are preferred by consumers is the vertical product line offerings. Having the comic book available with other collectibles such as the action figures, movie and character posters as well as other artwork is critical to attracting and keeping clientele. Being able to articulate the value of a total collection, aspects of the series, artwork and writing is invaluable. Specialty retail outlets have the ability to hire such expertise as well as offer the entire vertical product line. It is similar to the retail concept of accessorizing. (i.e. offering the handbag with a shoe purchase or having a shoe department close to the clothing lines)

Zaldiva vs. Other Specialty Stores/Chains

In the specialty retail store marketplace, there are a few key elements that separate successful operations
from those that will end up either being absorbed or replaced.

• Diversity of Product Offerings – Having a complete inventory that includes collectibles, allows for purchase from customers and offers a wide cross section of the comic book and collectible consumer is both unusual, and important. Having, as Zaldiva does, multiple lines of merchandise, as well as a diverse offering of comic books by theme, type and age group is a key success element.

• Product Knowledge – This sounds like a given, however many small outlets are run by people with a modicum of product knowledge. Often, it is limited to what the storeowner happens to favor. The staff at Zaldiva has a deep and varied knowledge base that is unsurpassed in the industry. This is critical not only for discussion with clients, but with the purchase of inventory from the public, and at what prices; knowing what will sell and what will not, being able to spot a bargain and also knowing what years a certain product type is attractive at and what years it is not (i.e. – comics from the 30’s to 40’s value vs. not getting those from the ‘90s). This is very similar to the numismatic collectible industry. Zaldiva only purchases limited editions. Also, clients like to know they are getting a fair deal and can talk to the proprietor with confidence..

• Proper Layout – All too often, the small retail outlets are dark and dingy with just a few rows of comic books on racks. Zaldiva has a large, wide-open array of comic books, collectibles, statues, artwork and more in a very clean, hospitable and “cool” atmosphere. The music is current and the store is family friendly and easy to navigate.

Zaldiva is one of very few companies in its field that is able to ship internationally. It also is unusual in its internet presence, holding a Gold Powerseller rating on ebay.

“One of the things that makes us different from other retailers of our kind is our store. We designed it to have a ‘wow’ factor that not only has customers coming in the store, but staying in the store and looking at everything we offer. People like everything from our music, to how clean and bright our store is. Everything is eye catching and we like it that way. It is a place where adults feel good shopping – and to bring their children.” Jeremy van Coller, Director/COO.

Robert B. Lees.

Mr. Lees, age 61, is a graduate of the U.S. Naval Academy. He served as an Officer in the Marine Corps, both overseas and domestically. After transferring to the active Reserves, he joined the DuPont Company, where he managed the Southeastern Region. He took the region from last to first in the acrylic sheet division for sales and service. He then became part owner and general manager of a wood laminating operation in Orlando, Florida. Upon the sale of the business, he joined Merrill Lynch in the Private Client Group and became an assistant Vice President. He has since consulted to a Florida-based investor relations firm, and served as President and Chief Operating Officer of two start-up companies, as well as his current position.

Ms. Leigh-van Coller

Ms. Leigh-is 37 years of age. She is a 1989 graduate of Washington High School in Phoenix, Arizona. For the past five years, she has been significantly involved in the Company’s operations, including web site design and maintenance, inventory and shipping, online sales fulfillment and general operations. 

John A. Palmer, Jr.

Mr. Palmer is 70 years old. He is a graduate of the University of Wisconsin, where he received a BS in Mathematics and Physics and an MS in Education and Counseling. He has continued his education throughout his life and has completed multiple workshops in Electromechanical Automation, Electromechanical Systems, Vacuum Technology, Vacuum and RF Power and Semiconductor Manufacturing Processes. He was a presenter for Basic Troubleshooting and Electromechanical Devices at the Intel/MATEC Summer Institute, Arizona as well as for the transducers Workshop in Orlando, Florida and the Rockwell automation PLC Workshop in Michigan. Since 1969, Mr. Palmer has served as a Professor of Electricity, Industrial Electronics, Manufacturing Electronics and Mathematics at the Central Arizona College in Coolidge, Arizona. In addition, he has been involved in Summer Faculty Internships at Motorola and Intel, both in Phoenix, Arizona.

Jeremy I. van Coller

Mr. Van Coller, age 29, is a graduate of Kloof High School (Kwa Zulu Natal, Kloof, South Africa) where his line of studies included Technical Drawing (architectural renderings), Biology, Advanced Mathematics, English and Afrikaans. He continued his education by attending the Academy of Learning (Kwa Zulu Natal, Pinetown, South Africa) where he studied Marketing, Management and Computer Science for approximately 

  Contact Information:

Zaldiva, Inc.

331 E. Commercial Blvd.
Oakland Park, FL 33334

Phone: (877) 925-3482
E-mail: info@zaldiva.com

http://www.zaldiva.com
Investor Awareness for Zaladva:

IRth Communications, LLC
520 Broadway, Suite 350 #111
Santa Monica, CA 90401

Phone: 866-976-IRTH (4784)
Fax: 949-861-6388

Disclosure: Pentony Enterprises LLC has been compensated twenty-seven thousand dollars for profile coverage by a non-controlling third party. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.