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Anyone have L2?
Good News…Bad News…
The Bad News first…I think that many traders were on vacation today; that may have contributed to the upside-volatility today. In the absence of news, I’m guessing that more shorts and bashers had their PC’s powered off today than did the longs. The longs won by a landslide today.
The Good News…today provided a valuable insight into what this stock is capable of…once it starts to move. We ever-so-slightly tipped the mix of traders today…and BAM, this stock takes off like a rocket. This could also be an indication of news about to be released.
I will be buying more tomorrow based on the performance I witnessed today. Today’s action was a gift…a glimpse into the future.
Happy days are coming…let the PR’s begin.
Forgive the question…but why would AREO intentionally push up the PPS up BEFORE the merger. I don’t expect much real information from AERO until the ink is dry.
The prior PR’s have stated that the share exchange-rate and percentage will be determined at the time of closing. If AREO bumped the price pre-merger with PR’s…they would be trading for shares at a higher valuation; this is NOT in AREO’s best interest. They would end up with less of percentage of their own company…because of their own actions. I think AREO would be liable to their existing shareholders for “giving away” part of their equity through pre-merger PR’s.
I believe that AREO is prohibited from directly saying anything that would influence the price of RCCN before the merger…the CEO just wouldn’t expose himself to the potential liability.
At this point, FCCN has been bopped around by everything except “FACTS”. AERO has said absolutely nothing about themselves…nor have I seen any verifiable data…just rumors, assumptions, and pie-in-sky predictions.
Please understand that I am VERY LONG with this stock. My “best guess” is that AERO has 5M-15M in current sales. I think they are working in many areas on strategic growth. I’m betting that some of those imminent deals will dramatically influence the company’s revenues. I expect the biggest run up in the PPS will occur 6-18 months after the RM.
I also suspect that AERO is currently accumulating shares on the open market. I checked with a Corporate Law attorney about this possibility; he didn’t see any regulatory, compliance, or legal reason why they couldn’t be doing this. This prospect further speaks to why AERO hasn’t directly released any information yet.
This pre-merger accumulation could potentially fund AERO with all the cash they need. They even have a 7M tax write off to offset the profits.
This is long term hold for me. I won’t sell any of these shares until at least six months after up-listing. I see the RM being completed sometime in October-07. I also don’t see the stock any lower than where it is now.
All IMHO…GLTA…Justin, NH
Cappttenton, I agree with you…everyone is really missing the boat here. The vast majority of the participants here are waiting to make their “10 bagger” for the year. Those traders will surely miss the real run that “starts” when this stock gets the attention of mainstream investors.
Strategically, AERO is already behind the curve for leveraging the RM for the 2007 NASCAR season. I feel the real surge in the PPS will come in 2008.
I think that 90% of all IHub investors will trade out of their positions when the PPS hits .15 to .25. Too bad---the real share appreciation will be realized after AERO’s growth and earnings have benefited from their coming out party…typically 1-3 years after becoming a public company.
I have purchased the majority of my shares in my ROTH account…because this is a longer term investment for me…not a day trade.
In two years…most here will look at AERO’s PPS and kick themselves for selling when they did.
GLTA…
I’ll be buying more tomorrow if I can find the time to get a wire off to my broker. I’ve got 4K to sent to my ROTH for 2007. Hopefully I can score 400,000 shares.
My buy got filled at .0105 within 30 seconds...albeit in several smaller increments. I’m still holding and adding on the dips…as long as my wife doesn’t notice.
For me, this is a long term investment…not a trading opportunity. I wouldn’t even consider selling any of this stock until 6-12 months after the merger has completed. I’d want to give the company a full business cycle to adjust to their new wings and observe their growth strategies first hand. They have shown great prowess, strategic vision, and excellent business logic. The real payoff for this stock will come after the RM hoopla has worn off and the investing public begins to focus on their LT growth and innovation.
Please sell me some more shares at this price…GLTA
BTW…I think you guys are right; I believe AERO is in the process of accumulating shares. This will be the ultimate kicker for their financials…and ours...as this company progresses along the growth curve.
Great read…I think it’s exactly what’s happening. You seem to hit the nail on the head with your analysis…all the pieces fit the past actions of all the parties involved.
If AERO is playing their cards right, they will end up with a sizable asset (FCCN stock) post merger.
Great Job NHRED…
I’m going to Phoenix on business and want to visit the facility either to or from NH. I’ve been calling to arrange a visit for later this week or next week. I was told that Brian was in China for a several weeks.
Jason Hunsaker is the other person that I’ve been trying to contact; I only get his VM however.
If I can’t get anyone to acknowledge my trip, I will just show up on their door step…as much as I hate to arrive unannounced.
Andrew told me the same as well. I spoke with him today shortly after lunch. He said that he expected the financials to be sent to the SEC later today…probably followed by a PR in case anyone missed the filling. These were expected to be the two delinquent quarterly filings.
He also anticipated that all of the required filings should be completed by 5-15…thus making FCCN fully compliant.
BTW…I added significantly to my holdings this morning.
GLTA
Can someone please post an L2 pic for me...I need to do some buying this morning.
TIA
I just talked to Andrew…he is hoping for the filings to be completed by mid-week, certainly by the end of the week.
Can someone post an L2 pic for me?
I just stumbled on a couple of kegs of dry powder that need a new home.
TIA
The long and short…
Thank you to Mr. Bellman and Mr. Schwartz for attending and reporting on the FCCN meeting. I tried to arrange the time to go myself…but I’m just buried at work with projects.
The narratives seem very positive to me. Mostly, they confirm what we already know. It is refreshing to see that the details are consistent and progressing as expected. I would be quite concerned if different objectives and communications started flowing from FCCN. Inferential analysis tells us that nothing has changed with the RM as we knew it two months ago.
A lack of patience, narrow scope of investors, and I-Hub disinformation have whittled down the participants in this stock to handful of loyal longs. The trading action seems to be merely a function of a very thin, one-sided market.
The opportunity cost of the money to a day trader isn’t worth it to sit with this stock until June. When this deal gets closer to fruition, this stock will convert lurkers to buyers and day traders.
This company and RM process continues to behave like a company with a well engineered strategy. I continue to hold very long and strong on my FCCN positions and own half of my shares in my IRA.
Be patient…
***Annual Meeting***Please Read***
I am going to the Annual Meeting in Temecula next month. My goals include directly meeting any and all of the individuals involved with FCCN and posing a list of questions to them in an official and public forum.
I would strongly suggest that anyone on I-hub that has a burning question pertaining to FCCN or the RM…contact me with those inquiries.
Procedurally during the meeting, there will be a point in time that management opens the floor to new business. At that time, I will pose the issues/questions…for an “official response”…that is on the record of the Annual Meeting.
This will be the time to remove all the ambiguity from the Q & A. I will then obtain a copy of the transcript and post it on this forum…word for word…without interpretation or misstatement.
I believe the synergy of this group can forge a better list of topics than I can on my own. I will repeat this post several times before the meeting so we can continue to refine the topics up to the point of my departure. I will append the running list of questions to the bottom of these subsequent posts.
My target is to develop a prioritized list of ten questions/topics for submission; any more than that may be too disruptive.
I strongly believe in FFCN and AERO…but I have as many questions as everyone else. Let’s work together to remove some of the mystery and misinformation that has fostered in public discussion.
Thank you…
BTW…I will suggest a Webex session with Andrew for the Annual Meeting…But I’m not hopeful on this point.
Great news about the Definitive 14a.
IMO…the actual filing of the Definitive 14a was the line in the sand for this RM. The fact that FCCN was allowed by the SEC to file this document means that there are no objectionable issues that the SEC can foresee with this deal.
Despite this iHub-boards’ collective lack of understanding, this RM has met every milestone in the merger process. If this wasn’t’ going to happen…this Definitive 14a would not have been filed.
This is a very good day for FCCN and AERO shaeholders.
We have successfully crossed the risk point for the RM. I hope to meet everyone on March 13th in California.
Please remember that Andrew’s wife is expecting this week. Her due date is 2-26-07. I get the impression that the office only has a few employees. If Andrew is out…the PR machine may be in standby mode for a short time.
Be sure to mention to the pit crews that AERO is about to go public through FCCN…buy now.
I agree…they will have some great PRs coming out. I’d suggest that they may wait with the really good ones until this stock graduates from Pinkville. I suspect many potential investors would hesitate to jump in during this pre-merge pink mode. Strategically speaking, it would make more sense to feed investor emotions after the RM completes and the stock has been uplisted subsequent to a symbol change.
This won’t happen overnight…since I don’t think AERO will be targeting flippers and day traders. But it will happen with a very good outcome.
Thanks for your thoughts. I agree completely that we don’t want to raise the bar too high. I've seen some unreasonable numbers talked about in the past; I feel these numbers may have inadvertently set the expectations too high.
Since we’ve already seen the sell-off subsequent to the preliminary 14a and 8K, my guess is the risk is quite low at this PPS. Now that the emotional flippers have abandoned us, this stock should move based on fundamentals, financials, and projections.
Now that we have some baseline price/volume behavior to analyze, I’m trying to project out future trading activity based on expectations in an attempt to better understand any coming trend. What I’m really looking to identify is anomalous and unexpected trading behavior that would signal a momentum run…which would directly influence how I play this next up move.
BTW…I feel we have a solid base in place and plan to add more shares tomorrow.
What is the consensus expectation for 2006 sales(AERO)?
What is the consensus projection for 2007 sales(AERO)?
I’m just trying to model expectations to probable PPS velocities going forward.
BTW...thanks for the pricing on roll SS.
TIA
Who had the cost numbers for 304 stainless steel rolls?
Can anyone point me to that post?
TIA
Here’s a great business reason for the GGI deal.
Suppose that Peacock goes to GGI and says…AERO wants this shell and we (FCCN) are engaged in litigation with you (GGI); here is an inside look at AERO…now let’s cut a deal to move beyond this litigation. Let’s all be friends so we can all make some money.
GGI says OK…but we want a piece of the action to walk away and start playing nice. Let us finance your short term capital needs…in exchange for some restricted sweetheart shares…and we will relinquish our legal stranglehold on the FCCN shell.
Time and dollars being of essence…all parties agree with the deal. No one is screwing the current share holders…it’s just that GGI sat in the drivers seat because of the prior litigation.
FCCN shareholders have nothing without GGI’s concessions and the RM with AERO. So, any deal that gets the RM completed is in the best interest of the current shareholders. Before the deal was started, FCCN was in 000-land, now we have headed MUCH higher with this RM…how can this be a bad deal for you…only if you don’t already own any shares at this point.
Everyone wins…merger already inked…waiting for audits to get completed…shell gets cleaned up…then shares exchanged…AERO graduates from Pink-U…everyone wins.
I agree with your assessment. The terms of the financing agreement preempts the need for FCCN to dilute the float...instead, it issues 144-shares to GGI. FCCN raises the money they need to bring the shell into compliance without having to bloat the float on the open market.
If FCCN needs a little more capital to get the shell ready for merger, all they need to do is pay GGI $1.00, get $10.00 back in a mandatory stock purchase, and issue 144-restricted shares out of escrow at a quasi-market price. This is a win-win for everyone. The other option for FCCN is to sell shares on the open market…bloating the float…destroying investor value. GGI has provided FCCN with a creative line of credit…without which, FCCN would not have the resources to complete the clean-up.
I still maintain that the float is about 60M shares…not 140M; remember, the 83M shares recently issued to GGI are 144- restricted shares.
What a brilliant move for Peacock. For every $10K that FCCN repays to GGI, GGI is required to purchase $100K worth of RESTRICTED COMMON STOCK for $1.00/share. GGI is now a direct investor for FCCN….at a seemingly discounted price of $1.00/share, at the current share structure. Do you think GGI is anticipating 10%-20% return on their investment?
As the NASCAR season draws to a close, invertors will look at Aero’s stock chart; they will notice a little noise…a little chatter…a little blip in the technicals that preceded the merger announcements. Some of us, perhaps very few of us, will rest in the solace of knowing that we forged that blip, that chatter, that noise.
Oh God…please don’t this stock run before my home equity loan closes…amen.
Cut-n-paste from earlier:
This 8K is EXTREMELY bullish…think about it.
The settlement agreement between GGI and FCCN is allowing GGI et al to effectively invest and pre-buy restricted common shares at $1.00 each, in light of inside knowledge to the current float/AS/OS structure.
WAKE UP…GGI et al is buying common shares at $1.00 per share. GGI is in the position to have seen the AERO’s financials…and they are sweetening the pot for themselves by writing in this forward looking verbiage in the settlement agreement.
THIS IS THE ONLY WAY THEY COULD LEGALLY GET A PART OF THIS DEAL WITH THE INSIDE KNOWLEDGE THAT THEY HAVE.
Once this issue graduates out of pinkie-land and into the big world…that $1.00/share pre-buy will return a hansom profit to GGI et al. The daily machinations of this stock whilst in purgatory is of little concern at this point. The zero-day starts when the stock changes symbols and completes the RM. This deal isn’t being structured and PRed for the flippers on I-Hub (sorry), they have a well defined strategic plan in place to meet their longer term objectives…to maximize shareholder value…period.
I doubled my position today, and will do so again by week’s end as I free some more cash.
Please comment further on your opinion…I’m always interested in other people’s perspective. We each bring a unique wisdom to this forum. It’s up to the group to synergize the available information into a more valuable extract.
I have much to learn, the floor is yours…
…Justin, NH
This 8K is EXTREMELY bullish…think about it.
The settlement agreement between GGI and FCCN is allowing GGI et al to effectively invest and pre-buy restricted common shares at $1.00 each, in light of inside knowledge to the current float/AS/OS structure.
WAKE UP…GGI et al is buying common shares at $1.00 per share. GGI is in the position to have seen the AERO’s financials…and they are sweetening the pot for themselves by writing in this forward looking verbiage in the settlement agreement.
THIS IS THE ONLY WAY THEY COULD LEGALLY GET A PART OF THIS DEAL WITH THE INSIDE KNOWLEDGE THAT THEY HAVE.
Once this issue graduates out of pinkie-land and into the big world…that $1.00/share pre-buy will return a hansom profit to GGI et al. The daily machinations of this stock whilst in purgatory is of little concern at this point. The zero-day starts when the stock changes symbols and completes the RM. This deal isn’t being structured and PRed for the flippers on I-Hub (sorry), they have a well defined strategic plan in place to meet their longer term objectives…to maximize shareholder value…period.
I doubled my position today, and will do so again by week’s end as I free some more cash.
Just the musings of an old duck hunter from NH…Justin.
This 8K is the clean-up from the GGI financing settlement from 2004/06. This is great news that this issue has been put to bed. We can now move on.
New 8K out…look GREAT to me. I can't wait for the plain english PR to launch this stock into orbit.
Check knobias.10kwizard.com for the details…I’m on my way out the door.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 1, 2006
Commission File Number: 333-72392
FRANCHISE CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of
incorporation or organization)
98-0353403
(IRS Employer Identification No.)
43180 Business Park Drive, Suite 202
Temecula, CA 92590
(Address of principal executive offices)
(951) 587-9100
(Registrant’s telephone number)
ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES
From December 1, 2006 through January 29, 2007, the Company issued a total of 186,376 shares to Golden Gate Investors in exchange for cash of $186,376. The shares were issued with a restrictive legend pursuant to Rule 144 of the Securities Act of 1933, as amended.
The sale of shares to Golden Gate Investors was under a stock purchase agreement between Golden Gate and the Company dated October 31, 2006. Pursuant to the terms of the purchase agreement, Golden Gate is required to purchase $100,000 of the Company’s restricted common stock at a price of $1.00 per share for every $10,000 in convertible debentures paid down by the Company. From December 14, 2006 though January 24, 2007, the Company paid down $18,636 of a convertible debenture dated June 25, 2004 through the issuance of 83,121,521 shares of restricted common stock.
The 83,121,521 shares issued in satisfaction of the debenture were issued from an escrow set up as part of a settlement agreement between the Company and Golden Gate relating to the June 25, 2004 debenture, and were issued with a restrictive legend pursuant to Rule 144. Under the terms of the escrow, Golden Gate is able to draw down shares in satisfaction of the debenture provided that Golden Gate does not own or control more than 4.9% of the total issued and outstanding common shares of the Company. The debenture is redeemed at a price per share equal to an average of the five lowest closing bid prices over the 45 days preceding the redemption request. The shares remaining in escrow are voted by the Company’s Board of Directors. Once the entire debenture has been redeemed, any shares remaining in the escrow will be returned to the Company’s treasury and cancelled. As of January 29, 2007, a total of 765,270,212 shares remained in escrow and the unredeemed balance on the debenture was $203,291.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
Exhibit No. Description Location
10.1 Addendum to Convertible Debenture and Stock
Sale Agreement Filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned here unto duly authorized.
Date: January 29, 2007
Franchise Capital Corporation
By: /s/ Steven R. Peacock
Steven R. Peacock, Interim Chief Executive Officer
I expect to see the 14a Thrusday or Friday. The submission date was 1-17, but the record date of the filing was 1-19. Ten days from the record date is Friday. That's according to knobias.com. The PR should arrive after the filing. That will give the marketplace the wekend to go get more powder. I know I will...
I'm open for calls...Justin, NH
The sell-the-news sell off has placed significantly more shares in strong hands. I think your post sums up several thoughts that many of us are having. The greatest rewards will be realized after the merger. We will always have the influence of day traders, but I think we’ve reached a critical-mass with LT-investor momentum. I don’t think we will see this level of volatility in the future. The past several days has provided an unprecedented buying opportunity.
BTW…Mostly trap, some skeet, and an SE-Land. Definitely bring the Browning.
Just the musings of an old duck hunter…Justin, NH
Manchester Airport (MHT) is the closest; Boston is another 90 minutes away. I’ll get NHred to kick in the drinks. Just bring your self and a bib.
Nite all…Justin, NH
It's not Aero's job to clean up the shell…I’m sure their lawyers won’t let them co-mingle liability until the deal is done.
Read other post:
Aero didn’t need the funds…FCCN did, to finance the filings, audits, PR’s, ect. The loan was made to FCCN…not Aero. Think about how your lawyer protects you during a closing on a home; this is the same thing…just a much gibber deal with LOTS of lawyers, regulators, shoulder jockeys involved. Nary the two shall meet until the ink is dry; this is just good business practice.
Good nite all…
Just the musings of an old duck hunter from NH…Justin.
Aero didn’t need the funds…FCCN did, to finance the filings, audits, PR’s, ect. The loan was made to FCCN…not Aero. Think about how your lawyer protects you during a closing on a home; this is the same thing…just a much bigger deal with LOTS of lawyers, regulators, shoulder jockeys involved. Nary the two shall meet until the ink is dry; this is just good business practice.
Good nite all…
Just the musings of an old duck hunter from NH…Justin.
I speak based on my comfort level of DD and the fact that I talked to all of these people myself.
The information about the GGI/La Jolla Cove shares came collectively from conversations with Andrew and Travis Huff of La Jolla investments. Please see below for the direct contact information. Travis Huff called back after I sent him an email requesting a call concerning details about dealings with FCCN.
NHred and I find information, hash it between the two of us, and then cross validate each others work and interpretation. Typically, we will call the same source a couple of days apart and ask the questions in a slightly different manor…and then compare and contrast information and interpretations.
http://www.ljcinvestors.com/
Travis Huff
Portfolio Manager
travis@ljcinvestors.com
Gota for the night…My little one has a birthday party in the morning.
Just the musings of an old duck hunter from NH…Justin.
Might I suggest another possibility?
In all of my calls and other DD, I find myself dealing with people that are prohibited from telling you the details that you really want to know. Typically, if it isn’t defined in a filing or a PR…it won’t get directly talked about. When I received answers to many questions, I found that it left far too much latitude for interpretation.
I don’t think MTG is disingenuous nor do I think Andrew is either. I found that I had to constantly redefine the Q & A to get close to the answers…without actually crossing that line and getting them spelled out in black and white.
I think we are just seeing and reading the evidence that different people have different interpretive and commutative abilities. Heck, this board can’t even agree on a unified interpretation of an SEC 14A filing…never mind hours of conversations.
To me, I’m in this for Aero…not the day trade plays.
Just the musings of an old duck hunter from NH…Justin.
My understanding is that any remaining escrowed shares would be cancelled. I’d like to see GGI/La Jolla Cove go away…far away. Management always gives up something when financiers like this are needed. FCCN needed them…I don’t believe Aero needs them.
Just the musings of an old duck hunter from NH…Justin.
Both of us did lots of DD. NHred has been in this stock since the restaurant days. He came to me with when this started to show signs of life again. We then beat the drums very hard to find out what we could.
I was VERY skeptical at first. My main concern was FCCN’s reputational baggage. The more I dug into Aero…the more I liked Aero. I’ve since converted to a long…ignoring the day to day trading banter that drives investors nuts.
I’m quite positive on this stock…as long as the merger goes through. At this point, I don’t see any hurdles that can’t be traversed for this merger. There may be a few more bumps, but if your sights are post merger they’re almost irrelevant.
Just the musings of an old duck hunter from NH…Justin.
If we knew all the answers…and we liked all those answers, this stock would be several dollars at this point. I agree that we don’t have copies of the documents…yet; they should start to trickle through with the filings.
Just the musings of an old duck hunter from NH…Justin.
With all due respect, this is not my understanding. As I understand the events, the 63M float increase may have come from share selling based on CD’s and other shares that were in the pipeline over the past several years. The past filings of FCCN are riddled with CD’s. A “prior” default with GGI unleashed that recent torrent of shares. They claim to have a very small amount of unrestricted-shares left in their coffers...less than 2M shares.
The possibility still exist for GGI/La Jolla Cove to end up more shares…that is if FCCN defaults on it’s current 1.5M CD. However, I see this as a negligible risk since I don’t expect Aero to default on their newly inherited CD. Additionally, it was represented that any stock settlement that might be triggered by a future default would only convert at the prevailing stock price. In this example, if the Aero defaults down the road and the stock price is $1, then they would only receive about 1.5 shares for that $1.5M financing arrangement.
I don’t see the 780M share time bomb exploding if the merger goes thru.
I still see this deal consummating with the post- merger float where it is…and any newly issued stock to Aero as being restricted. I’m happy seeing the 140M float for the foreseeable future.
Just the musings of an old duck hunter from NH…Justin.
My friend NHred and I have spent many hours DDing this company and Aero. The more we dig, the more this appears to us as a diamond in the ruff. I’ve even jumbled my holdings around to get shares into my Roth; I hate to pay taxes.
Our personal opinions are debated almost daily….and we still sneak more shares by our wives. Again…we are not day traders; we are looking at this with a post merger objective well above $1.
Just the musings of an old duck hunter from NH…Justin.