Micro cap company Spicy Pickle (SPKL) continues to grow at a rapid pace, opening their 31st store last week, and signing leases for two more. The newly-opened one is the second one in Indianapolis, Indiana. A total of ten are on tap for the area. The two new leases were signed for pending stores in San Diego, California, and Austin, Texas. It’s the first store in San Diego, though twelve are on the way. It’s the third store in the Austin area.

As we’ve mentioned before, each store established in a new market is like a seed…the first one softens the ground, which means the following ones are well received. And in all cases so far, their popularity among consumers has had a positive ripple effect. We suspect this is the primary reason for such a brisk pace of growth right now.

Moreover, this early-stage company is why we feel SPKL is an early-stage investment opportunity. As more saturation occurs, the risk/reward dynamic of being a shareholder changes.

Speaking of shares, the pullback seems to have stabilized after a full 61.8% retracement of a historic run-up. Many traders would consider this a relatively safe ’second chance’ entry point, or perhaps a first chance for anyone waiting for all the early volatility to subside.

Additionally, the company reported quarterly earnings on Wednesday. No surprises really…the cost of ‘going public’ was built into the bottom line, making the loss seem substantial to anyone not reading the income statement closely. Those are one-time fees, and shouldn’t be a factor at all going forward.

Also, note that the company doesn’t book franchise fees until that store is open. Considering a significant number of stores were open after their reported quarter was completed, the ‘then’ doesn’t exactly reflect the ‘now’. More than that, the number of stores being opened right now is accelerating. We believe next quarter will be significantly stronger than this past quarter, and encourage you to focus on the future rather than the past for this micro cap stock.

Here’s the full press release on the store openings, while the quarterly fiscal information can be found right here.