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Re: InvestmentFan post# 32737

Thursday, 11/27/2014 4:10:41 PM

Thursday, November 27, 2014 4:10:41 PM

Post# of 45244
Not sure how much cold will help BCCI:

- Company's registration statement says that coffee revenues slow during the holidays.

- Q1 14 was $317K in revenues, Q3 14 was $297K. Not much difference -- perhaps because ice cream sells more in the summer, or because there isn't as much seasonality as one would think.

In fairness to the point, I would project Q1 15 revenue to be somewhat higher than Q1 14 because prices have likely been increased somewhat this year (at least they have at Starbucks, I know that from personal knowledge, but note comment in my last post re: declining margins suggestive of a lack of BCCI pricing power).

But it is hard to see how the company will be able to turn a profit, which at the end of the day is the objective. Consider that Q3 operating losses were $188K, and interest expense of $89K, on revenues of $297K.

There is a reason for the serious pps decline of the last few months. Could be the 'fat lady' is warming up the vocal chords... Or at the very least there will be significant additional dilution to obtain cash or pay operating expenses (subsequent events section of the Q3 report already reported some in the first half of Q4).