Spicy Pickle (SPKL) Announces Five New Lease Signings
ORIGINAL ALERT INFO :
ALERT DATE & PRICE: SEP 21, 2007 / $.69 ALERT EMAIL:CLICK HERE CURRENT PRICE: $1.18 CURRENT % ROI: +71%
COMPANY CONTACT INFO:
Spicy Pickle Franchising Inc.
B90 Madison St., Suite 700
Denver, CO 80206 Phone: (800) 711-1902 Fax: (303) 297-1903 Email:
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Web:www.spicypickle.com
INVESTOR RELATIONS INFO:
Spicy Pickle Phone: (800) 711-1902
Today, just after the market closed, SPKL announced that franchisees have signed leases for five new locations. One in Brooklyn, NY, one in Ocala, FL, and one in Norman, OK. San Diego is getting a second store, and Austin is getting its third.
As you can see by the chart to the right, the stock continues to bump along the bottom of this extended triangle pattern. We could possibly see the stock break the bottom part of this triangle in the next few weeks.
Why do I say this?
Well, as everyone knows, this past December the company completed a $6 million financing. That stock has now become free trading stock, to the tune of about 7 million shares. The cost basis for these shares is $.85. This creates a potential supply problem in the very short-term. If these shares hit the market, this obviously creates a very attractive opportunity for all current shareholders.
We might see the stock trade lower into the $1.00 to $1.10 region. If this does happen, I can't see it trading lower than $1, because the investors who participated in the $6 million financing are not looking to just make $.15 on their investment.
They know the upside for this company and are looking to make a ton of money on this deal. You do not make a ton of money by buying a stock at $.85 and then getting out at $1.00. They want to see the stock go to $2 or $3 and then look for a possible buyout.
It's worth noting that two of the company's independent board members participated in this financing to the tune of $1.3 million. That is how much the insiders believe in this company.
By the end of 2008, we could possible see Spicy Pickle opening 3 to 4 new stores per month. With this type of growth, who wants to be a seller?
Just a little FYI – my 300,000 share stock certificate is sitting in my filing cabinet and most likely will not be touched for another year.
This company is for real and if you are just finding out about it, just take a look at all of their previous press releases to see how fast this company is growing.
Here is today’s press release:
Spicy Pickle Announces Five New Lease Signings
DENVER, CO, February 20, 2008
Spicy Pickle fast casual restaurants (OTCBB: SPKL) today announced five of its franchisees have recently signed leases for new locations.
Today's announcement marks Spicy Pickle's first locations in Florida, Oklahoma, and New York. The other two lease signings represent a second location in San Diego, California and a third location in Austin, Texas.
Spicy Pickle will enter the New York metro area with a Brooklyn store. Located at 143 Montague St., Brooklyn, NY 11201, this location is adjacent to the Federal Court House in Brooklyn, several Universities, and a number of large, white-collar office buildings.
Edmond, Oklahoma, just north of Oklahoma City, will be getting its first location. The Spicy Pickle restaurant will be located in Spring Creek Village at 1389 E 15th St., Edmond, Oklahoma 73013.
Florida will also be the recipient of its first location. The first Florida Spicy Pickle will open in the Northern Florida community of Ocala. The store will be found at the Market Street at Heathbrook, 4414 SW College Road #1020, Ocala, Florida, 34474.
The last two of the five new locations will mark the second San Diego, California store and the third Austin, Texas store.
The new San Diego location is just south of the Little Italy area and adjacent to the downtown financial district. The store is located in the Aperture Building at 1454 Union Street, San Diego, CA 92101.
The third Austin store is located at the 1890 Ranch at 1335 E Whitestone Blvd., Cedar Park, Texas, 78613.
The new locations in San Diego and Edmond are expected to open in the late spring. The other three new locations should open sometime in the early summer.
Marc Geman, CEO of Spicy Pickle, commented, "We always try to be very careful about getting the right location, and this is particularly important for a first restaurant in a new area. Our hard work has paid off with these five leases which will bring the Spicy Pickle to three new states. Our restaurants have always generated additional interest in the area where they are located. We look forward to further expansion in Florida, Oklahoma and New York in the near future."
ALFONSE
StockwireAdmin
