IMO, major catalysts on stock price action are as follows:
- Company presented as a growth story, but revenue down 15% Q1 14 vs. Q1 13. Coffee kiosk count has gone from 8 to 10 in the last 2.5 years. At beginning of 2012, a company-sponsored research report (Prime Equity Research) spoke about 100 stores open by end of 2012, didn't happen.
- Company had presented itself as profitable when publishing unaudited statements, but recently issued audited financials showed it as unprofitable. 2014 losses were double 2013 losses, and more than 2014 revenues. Despite the fact that the two senior people receive $0 cash compensation.
- Announced store openings have not happened. Recently, the 1/22/14 PR promised a third SW FL store in early Q2, hasn't happened yet -- a real concern to those enthused about the franchising model, as this is the closest that the company has come to a franchise. My hypothesis is that the failure to open relates to the $8K/mo/store loss in SW FL, versus less than $15K/mo/store revenue, but company has not spoken to the opening delay.
A 5/28 PR spoke to a Knoxville sports bar opening by end of July, to more than double revenue, but hasn't happened. If I were to guess, it would be that no-one has come up with the cash to accomplish the rebranding. But again, company silence versus the PR.
Previously, in early 2012, 5 PHX area store openings were announced, but only two ever happened (and maybe those were not the original principals) and both have closed. Previous announcements re: TX and NJ can be researched, suffice to say they didn't happen as indicated.
Net: I think pps would be higher if company were more transparent regarding their store growth plans. PRs without performance cause investors to discount PRs, for example discounting business value of the reality TV show.
- $500K worth of stock (almost half a year worth of revenue) spent on ice cream distribution, but the audited financials do not even mention ice cream as part of the business model.
- Company has continuously promised 'uplisting,' and got some pps action a year ago when they said they had a symbol. At this point, investors understand that company does not come lose to meeting senior listing criteria.
Indeed, for me if serious about uplisting, we would have had Q2 financials on August 15, as required for reporting companies. Didn't happen; is there an over/under when we will see Q2??
My view of pps drivers; others??
