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The
Spicy Pickle growth odometer hasn't had a break since September, though
investors aren't likely to complain. The latest boon for the company came
yesterday afternoon when the company signed yet another multi-unit
deal. Operating profits may not be too far off; more on the news below.
Remember
our adopted 'Clean Energy' theme? We've got a new chapter in the series
today. Mass Megawatts Wind Power Inc. reported quarterly results Monday
afternoon. The results themselves leave us wondering if there was any wind
at all for the prior three months, but the technology/opportunity of wind
power deserves its first look from our staff.
Finally, Wireless
Age is back on our radar....not because of what it's doing, but because
of something it's close to doing.
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Spicy
Pickle Keeps On Keepin' On |
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It may seem
like you're reading the same press releases over and over again from restaurant
franchiser Spicy Pickle (OTCBB:
SPKL); all we seem to hear about is more stores opening, and more
franchise deals being signed. Rest assured though, all the news is cumulative.
 The
latest in a long string of good news came yesterday when a seven-unit
franchise agreement was sold for the San Antonio, Texas area. There
are two operational units in nearby Austin (with a third on the way), which
may have helped soften the ground for these new units.
With these seven
new franchises in the works, the total number of units comes to 128...36
of which are up and running. That's a definite improvement on the total
of 80 'signed' units and 26 operational units we saw when we first started
following Spicy Pickle back
in September.
 The
top line will increase as each of those stores opens. The middle lines
- the expenses - shouldn't increase by as much (relatively) once
the company's fixed costs are being fully met. We estimate the operational
break-even point to be somewhere around 45 to 50 stores ...which is now
in sight. Ergo, profitability may be a reality sooner than most people
realize.
Nevertheless,
the same bear that's been eating the rest of the market finally got his
hands on SPKL yesterday. In so doing, the timeframe for owning the stock
most likely defaulted to a long-term one...not that it's a bad thing.
Just for the
record, Monday's closing price of 83 cents was basically in line with the
share price from the December financing; about $6 million was raised at
85 cents per share then. If these long-term holders (and mostly insiders,
no less) were ready and willing at current trading levels, maybe other
investors should be thinking along the same lines.
That's not to
say we expect SPKL to be trading at $2.00 by the end of the week, because
we don't. However, we will point out how the company hasn't wavered in
its multi-month stream of growth news.
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No
Wind in Mass Megawatts Wind Power's Sails? |
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Though Mass
Megawatts Wind Power Inc. (OTCBB:
MMGW) took another quarterly loss for the three months ending on
January 31st, it was the third consecutive quarter of measurable cash flow.
The loss was almost entirely due to administrative expenses, and was also
comparable to the loss from the prior two quarters.
 Impressive?
Not in the least, though still worth mentioning as a talking point within
our ongoing discussion of clean energy sources.
Per the company's
press release (and here's the interesting part), the wind power
industry has grown an average of 25% per year. And as of last year, there
were more than $9 billion worth of wind power plants under construction.
That's
a lot more than 'mere curiosity' funding.
Is Mass Megawatts
a real contender? Based on current results, no, but the company
only started to generate revenues in calendar Q3 of last year. Moreover,
the company appears to have a realistic long-term growth plan (20 years)
to tap into what they project could be a $100 billion sliver of the energy
market pie. Moreover, their technology is relatively reliable and cost
effective.
Mass Megawatts
is going on our clean energy watchlist. Comments and feedback are welcome
on the blog.
When we first
stumbled across Wireless Age (OTCBB:
WLSA) in November
we were impressed by the underlying fundamentals, but figured the stock
would bring lots of volatility to investors. By
January 23rd - though following a huge runup - the concern was
confirmed...the WLSA boat was rocking.
 Owning
the stock soon became an exercise in balancing short-term trading sensibilities
with long-term investment notions - something we've looked at quite a bit
recently.
Since our last
look in late January, 'trading' seems to have taken precedence thanks
to lots of volatility. After recovering in late January, and again in late
February, WLSA's chart has formed a pattern most traders would call a wedge,
or triangle.
The shape itself
is neither bullish nor bearish; the event most traders are likely
to be waiting on is for one side of the triangle to be broken. Why?
It could spark a move big enough to be trade-worthy.
A quick glance
at the chart is all you need to spot the wedge, though we've marked it
all the same.
Ideally we'll
see a bullish break above the upper line (not to mention the recent ceiling
of 3.5 cents). Such a move would not only benefit short-term holders, but
also long-term investors who are more concerned with the company's future
success than they are with short-term charts.
Though not a
recommendation, we do feel Wireless Age may be of interest to some of our
readers.
By the way,
if you've been following our pseudo Clearly Canadian (OTCBB:
CCBEF) trade, you may want to revisit the chart if you haven't
seen it since Thursday. We saw a nice rally on Friday, and the stock held
its ground pretty well on Monday.
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Spicy
Pickle(tm) Announces 7 Restaurant Franchise Agreement in San Antonio, Texas
Texas To Challenge
Colorado For Lead in Restaurant Numbers
DENVER, CO--(MARKET
WIRE)-March 17, 2008 -- Spicy Pickle(tm) fast casual restaurants (OTC BB:
SPKL.OB) announced today it has recently sold the rights to develop seven
Spicy Pickle(tm) restaurants in San Antonio, Texas.
The sale of the
seven restaurant development package brings the total of franchise and
corporate restaurants to128. There are currently 36 restaurants open and
many more in construction, lease negotiation, and site selection.
Marc Geman, CEO
of Spicy Pickle Franchising, Inc. commented: "Our Austin, Texas restaurants
have done very well, and their success fostered interest in Houston and
San Antonio. Our third restaurant in Austin is close to opening, and we
have begun the site selection process in Houston".
"With the addition
of the San Antonio development package we now have commitments for 25 Spicy
Pickle(tm) restaurants in Texas. Colorado currently has a total of 23.
Texas has accepted our concept, with the Dallas/Ft. Worth area, the largest
population center in the state, still open for expansion."
Furthermore, Mr.
Geman stated: "In the last three months we have entered into multi unit
franchise agreements in Chicago, Los Angeles, Houston, San Antonio, and
Michigan. We are proving out our evolution to the multi unit ownership
model. It provides efficient use of personnel, communication, distribution,
and marketing. The more restaurants we build in larger areas, the easier
and more cost efficient the construction, distribution, branding, marketing,
and training becomes. Texas is our first state outside of Colorado where
these efficiencies will start working."
"I feel that we
are beginning the second phase in our growth strategy. We are starting
to see activity in and around our early single markets. More interest brings
more restaurants, and more restaurants bring conditions that can improve
unit economics. It all works together to create momentum. We are very excited
to see our hard work starting to pay off in Texas and expect other states
and regions to follow. If we continue on our current path, our growth should
accelerate over the coming months and years."
About Spicy Pickle(tm):
Founded in 1999,
Spicy Pickle Franchising, Inc. (OTCBB: SPKL) serves high quality meats
and fine artisan breads, baked fresh daily, along with a wide choice of
eight different cheeses, twenty-two different toppings, and fourteen proprietary
spreads to create healthy and delicious panini and sub sandwiches with
flavors from around the world. As a leading "fast-casual" concept, Spicy
Pickle(tm) offers menu items that are far beyond traditional fast food
-- but without the price point of casual dining. The hallmark of a Spicy
Pickle(tm) restaurant is quality, service and an enjoyable atmosphere.
The company is headquartered in Denver, Colorado, with restaurants open
or under construction across 16 states and many more in development nationwide.
For more about Spicy Pickle(tm), including franchise information and inquiries,
visit http://www.spicypickle.com.
Forward-Looking
Statements:
Certain statements
in this press release, including statements regarding the number of restaurants
we intend to open, are forward-looking statements. We use words such as
"anticipate," "believe," "could," "should," "estimate," "expect," "intend,"
"may," "predict," "project," "target," and similar terms and phrases, including
references to assumptions, to identify forward-looking statements. The
forward-looking statements in this press release are based on information
available to us as of the date any such statements are made and we assume
no obligation to update these forward-looking statements. These statements
are subject to risks and uncertainties that could cause actual results
to differ materially from those described in the statements. These risks
and uncertainties include, but are not limited to, the following: factors
that could affect our ability to achieve and manage our planned expansion,
such as the availability of a sufficient number of suitable new restaurant
sites and the availability of qualified franchisees and employees; risks
relating to our expansion into new markets; the risk of food-borne illnesses
and other health concerns about our food products; changes in the availability
and costs of food; changes in consumer preferences, general economic conditions
or consumer discretionary spending; the impact of federal, state or local
government regulations relating to our franchisees and employees, and the
sale of food or alcoholic beverages; the impact of litigation; our ability
to protect our name and logo and other proprietary information; the potential
effects of inclement weather; the effect of competition in the restaurant
industry; and other risk factors described from time to time in our SEC
reports.
COMPANY CONTACT:
Marc Geman, CEO
Spicy Pickle
Franchising, Inc.
303-951-2530
ir@spicypickle.com
Source: Spicy
Pickle Franchising, Inc. |
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Updated: 3:10 pm PST (23:10 GMT), November 20, 2008
