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Nah, I'm not going to comment too much on your decision to support the WeFunder. If you think it's a good investment, you absolutely should.
But I do think you hit the nail on the head that your greatest risk is that Joey Parsi isn't going to use the money for expansion. Ordinarily I would say that isn't likely, but he already screwed over his own shareholders in the past when he raised money for expansion in an offering and then spent it on G&A. What makes you think he won't try to screw over a new set of people who may not be familiar with his shady past?
And his G&A seems remarkably high -- but when asked on WeFunder to comment on why those professional expenses are so high he goes silent. Similarly, when asked if he will guarantee that any WeFunder proceeds will be used only for expansion, he refuses to comment. Just something to be aware of.
One other point: Joey's salary is really, really high. Take a look at SHMP -- everyone's loving the stock right now, and a lot of people have made a lot of money on it -- including TooFrank who used to post here. And that's fantastic! I like it when people make money on pennies.
But...the CEO of that company's salary was like $80k. Joey had been paying himself 5x that amount. And, SHMP has fewer employees. Joey has lots of people doing the dirty work, so its not like he is earning that salary rolling up his sleeves and getting dirty cleaning the ball pits.
My point is that Giggles hemorrhaging money faster than it's bringing money in, and Joey has not demonstrate any willingness to make the necessary sacrifices to stop the bleeding.
The fact he won't even commit to where the new location will be is suspect -- you'd think that would be the easiest answer but to me it indicates he doesn't have any plan at all. It would be one thing if he said, "We want to put a new restaurant in Seattle, in one of these malls." And then he targeted primarily people living in the Pacific Northwest as potential investors since they stand to benefit the most from its opening.
Just way too many unanswered questions here. Is $200,000 really enough to open a new location or is it just enough to keep the lights on for another few months while he collects his inflated salary?
Good luck.
$1.75 retrace is my target buy area.
It did but it's an apples to oranges comparison. Feb 2017 was pot stock mania and the entire sector soared. I don't see the restaurant sector having one of those bull runs.
SHMP went from .009 - .70 last week. So it happens. Difference is people are speculating on the value of a potentially industry changing patent. Same with biotechs -- they're all hype until they're not.
GIGL's value isn't the restaurants until there are 30+ of them because each has limited upside. Both locations are hugely profitable but the company is still losing money--mostly because Joey Parsi is paying himself and others too much. The real value is developing a brand and selling other merchandise.
If he announced a new location tomorrow, GIGL may run to .10 on hype. Shortly thereafter the financials will hammer it down to its fair market value. Just like what happened to the stock you used as an example.
So far I haven't seen any evidence Joey can get another location. His own shareholders won't invest nor should they after he screwed them in the last offering. Other investors for WeFunder are investing blindly in a third mystery location? the fact Joey isn't even sure where this location will be speaks volumes. If he said he's opening one in Seattle he could target people who live there.
The guy is a hack. And he is the reason there's limited upside. He's put $9M into it and has two locations to show for it, and is losing money. It costs 1.2M to open one, yet even with three locations he's spent $3mm per...
Well it looks like GIGL just lowered the WeFunder target to $200,000. I'll let you all decide for yourselves why this might be the case.
Also, how confident are you that this money goes toward expansion? Joey raised $500k last year and not a penny went to expansion. It did, however, go to operating costs which presumably includes his salary.
Telling that someone asked a question on WeFunder if he would be willing to guarantee these raised WeFunder investments will only go toward expansion and weeks later, he hasn't replied. I sort of wished someone had asked him that on the conference call -- I personally think that if he has to choose between paying expenses or expanding, he's going to pay expenses.
Look at the balance sheet and income statement. Corporate expenses vastly exceed individual store profits. That isn't sustainable. So I'll ask again, given his track record, why should any investor feel confident that this money won't be used to pay immediate expenses especially if Joey himself isn't willing to answer that question on his fundraising site?
Hmmm.....
I disagree. Kids and germs are synonymous. Can't keep kids away from germs, whether you take them to a Giggles n Hugs (or Chuck-E-Cheese), a public park, a baseball game, or just send them off to school. Best any parent can do is keep a steady supply of hand sanitizer, wash hands before and after going out in public, and teach kids not to put their hands in their mouths or noses. Good luck with that.
The concept for both Giggles and Chuck-E-Cheese is easy to replicate. Chuck-E-Cheese was the first to get to market and it expanded quickly when video games were becoming popular -- the founder was a former Atari exec.
Giggles shuns video games, which are a big capital expense, but in doing so makes the concept much cheaper to replicate. A large indoor jungle gym may cost $250,000. Probably less. That's about the biggest expense other than kitchen equipment and tables and stuff. Anyone can hire charismatic teens to host karaoke singalong and face painting.
Assuming the numbers aren't fake, each individual location is showing decent profitability. But the CEO has no idea how to run a company. He pays himself too much, gives away shares unnecessarily to consultants who don't actually consult on anything he can act on (because no cash), and he's too arrogant to put his restaurants in smaller towns and cities across the country via franchising.
That's why Giggles n Hugs is a giant dumpster fire right now. Great concept, terrible management. And wrecked share structure.
Well to be fair I wasn't comparing Joey to any of them. He compared himself to two of them. The one common denominator between all three is that they stepped aside, involuntarily, for the good of their companies. And jobs and zuckerberg eventually returned once they had a better idea of how to run a public company.
This is great message board group. I'm on the sidelines for now, may re-enter with a fraction of my original investment as a lotto, but I do hope that this goes back up so that everyone here can make some nice profit.
The funny thing is that there's nothing really proprietary about the concept. Anyone can replicate it. If all the shareholders here took the money they invested in Giggles and pooled it together, it wouldn't be hard to open 3 or 4 locations. Mall owners would offer the same build out deal to anyone; it's not Joey's personality that makes them want to do business with him.
If I were Joey, I would do the following immediately:
1. Admit my shortcomings and step aside. Bring on an experienced CEO who has the contacts and resources to raise money. Joey is toxic. A quick background search shows that he worked for Barron Chase, and he was "allowed to resign" from TDAmeritrade. He has a history of overpromising and underdelivering, which any CEO can get away with once. Joey has used up all of his get-out-of-jail free cards, and this is why he has such a hard time raising cash. Nobody trusts him with their money.
2. Focus on what I -AM- good at: being a hype man. There's no doubt Joey is passionate about this business and he is good at getting people excited about it. That's a skill not everyone has. He's not a numbers guy, his financial acumen and business savvy are suspect, but he's a pretty solid marketer. There's no shame in stepping aside and transitioning into a different role. Lots of founders have done so, including Mark Zuckerbeg.
3. Franchise as many locations as possible, regardless of where they're at. Franchising will bring in instant revenue and shifts the build-out costs onto the franchisee. Giggles won't recoup as much profit as it would with corporate owned stores, but that's not the point. The more locations there are, the more Giggles' brand becomes a household name, which makes its moat a little harder to cross. The big problem is that anyone can replicate this, and Giggles only having two locations isn't a big competitor.
4. Once the brand is established, upsell higher margin products like clothes and lunch boxes and stuff.
5. Move into airports. Yeah, they're expensive. But this is the best way to make Giggles a household name. You've got millions of people every year, captive, with kids. People are already used to and expecting being charged more so nobody's going to complain about the price. Parents will want to take their kids there to wear them out before a long flight, or during a long layover -- especially since a lot of times kids are discouraged from entering airport lounges. But not only that, you get instant worldwide brand exposure. The small business owner who lives in Iowa and the Hedge Fund manager who lives in NYC both return home saying, "I would invest in one of those."
Realistically, the reason the WeFunder campaign isn't successful is because nobody knows about it. Even if they click on it, they've had no interaction with Giggles n Hugs. The fact is until Joey commits to a specific location, it'll fail -- if I knew he were building a Giggles in Sarasota, for example, I would invest because it would benefit me directly. Nobody knows where he plans to put the next location so he cannot target his audience effectively.
Corporate Strategy 101. Joey should go back to community college and take this course. It would help him out a lot,.
I can agree with all of that, ShawnyD.
Joey has definitely dialed back his grandiose plans.
At the same time, yesterday's conference call also showed that a lot hasn't changed.
1. He still blames everyone but himself for the company's shortcomings. It's the weather, or mall renovations, or whatever. No accountability for overpaying for professional fees. No accountability for taking a $200k+ salary. No accountability for misrepresenting a bunch of paid advisors as full-time management.
2. He said on the call that he didn't grant himself any bonuses. But as someone here pointed out, he gave himself nearly $27,000 worth of stock not too long ago. That's more than 10% of his salary as a bonus, for what exactly?
3. He still has an ego -- he only wants tier-1 malls, he is ignoring those who have shown an interest in franchising, etc.
Do you think he's worth the $250k (including stock options) he's paying himself?
I'd be a lot happier if he took a $75,000 salary until the company at the corporate level becomes profitable. Right now he's the only one making money on Giggles. And as long as he has a steady, nice-sized paycheck, are his interests really aligned with everyone else's? As a shareholder, when was the last time you've had an opportunity to vote on corporate governance?
This isn't a start-up. Millions of dollars have been invested in this concept. At what point is it time for Joey to move on, or at least acknowledge that he's not cut out to be the CEO.
That is a fair point. I don't know that it spikes back to .25 cents again, unless it gets pumped by a chat room because the financials wouldn't justify that valuation, but it happened once so it's entirely possible it can happen again.
I guess my question/concern/issue is whether Joey Parsi is sincere about opening a new location? I think he WANTS to do, no doubt, but he's already shown that he is willing to take money he raised that is earmarked for expansion to spend on other things, including G&A which presumably includes his salary.
He raised almost $400,000 in the offering. If he had put that money into an escrow account where it could only be used for expansion, we'd have a third location assuming he's telling us the truth that the mall owners are willing to come down a bit on their build-out terms.
We know 100% that in a few months, he's going to have to pay the professional fees again to the attorneys, accountants, etc. Where is that money going to come from? If he raises $300,000 for expansion, but has to pay these other bills, what does he do? I was surprised nobody asked him that question yesterday, but I wouldn't be surprised to learn that he doesn't have a good answer for it (yet).
The way I see it, he needs at least $700,000 before expansion takes place. That's almost the entire market cap of the company prior to this recent run-up. What concerns me is his unwillingness to consider franchising to mom and pop types around the country -- he's not in a position to turn down expansion opportunities, and he clearly doesn't see that the real value of having lots of locations comes from growing the brand to sell other stuff. I still think if you took 100 people from around the country, 99.75% of them have never heard of Giggles n Hugs.
I want this to succeed but I don't know how it will. I'm surprised that Philip Gay isn't able to leverage his contacts -- or at the very least, he isn't willing to front the $300k or so needed to get another location. The guy made a fortune at CPK -- I'd imagine if this were such a great opportunity he would seize upon it.
Not trying to bash, I'm legitimately curious as to what has changed if anything. If there's a sound reason why this dab and will go back up beyond hoping it gets run by a chat room, I'll gladly jump back in. .015 is still a peanuts price to pay.
At the same time it looks like everyone here is riding purely on hope-- a terrible investment strategy.
I couldn't care less what happens to the stock. I hope it goes to $5 so my initial due diligence is validated.
I guess I'm just confused why everyone suddenly believes Joey this time given all his past misrepresentations? If there's something new with this stock and why it has potential I'd love to hear, but so far none of my questions have been slandered?
But how is he going to acquire a company if the company doesn't have any money? Who is going to want to accept GIGL stock in lieu of cash? I don't know too many financial advisors representing a seller who would tell a client to take that deal unless there is also a cash or debt component to it, too.
And what happens to the share price if he acquires a company for, say, $200k? That's another 13M shares of dilution at current PPS. So even an acquisition will have a negative drag on the stock price for years to come, unless that acquisition can generate more money than he's investing to buy it.
It seemed to me like he wants to acquire a company so he can use its cash flow as a way to secure more traditional financing, because right now Giggles books are more or less toxic to lenders. And whose fault is that, and why shouldn't we be worried that Parsi won't make the same mistake again?
Just a lot more questions than answers today. Intriguing is a good word, but the more I think about it, the more harebrained this scheme seems to be...sort of like accepting bitcoin for payment, or opening a third location in Bahrain.
No problem. I always try to be as honest as possible with my assessment. At one point I thought this was an excellent risk/reward penny stock opportunity. Now, I think it's an excellent opportunity to make money if you're an insider who can collect a salary from operations, but for the shareholders, it's lost the luster that made it so attractive. And Joey has only himself to blame.
I think that it is part ego -- Joey loves to drop names of all the celebs and the media attention and all that -- and we are seeing it again by the fact he refuses to go into lower quality malls, or franchise to someone living in rural Arkansas.
The problem is that he fails to realize that the restaurants are a means to an end. Build the brand by putting as many locations as possible on the map -- and then sell those customers other stuff like backpacks and clothes and lunch boxes. If you look solely at the revenue of each location, the numbers just don't add up very well. Partly because each location can only pull so much business, and partly because there are too many shares where dilution becomes a legitimate issue.
At some point I would expect to see a reverse split, which entails another risk of getting the price hammered back down.
The sad thing is that the money Joey needs is not a staggering amount. He could literally fund this WeFunder himself if he put every dollar of salary he collected this past year into the campaign. But he won't do that. And that speaks volumes to me.
If it were such a great concept, people would be lining up hand over fist to get in on it. Why aren't they? Joey is the answer. I want to invest in GIGL. I have zero faith that Joey will use that money appropriately. The fact he doesn't know when and how to market his fundraising campaign is evidence of that.
That's one way of looking at it. And it's not inaccurate.
The other way to look at it is that Joey doesn't quite know how to raise the money he needs to expand.
The red carpet rollouts and the days of Tanforan's offering 100% build-out costs are now off the table.
There is an offer on the table contingent on Joey coming up with $500k or $600k -- of which even a successful WeFunder campaign will only get him halfway to the finish line.
He erred in hiring celebrity ambassadors, because he misjudged the value they would have (note: I think Jillian would have had tremendous value if he put her face on a frozen food line. Putting her on a morning talk show, however, was a waste of everyone's time).
There's an anonymous power broker who amazingly is willing to work on a contingency, but he can't tell us anything about this person nor can he provide any information or guarantees about the end result.
A lot of the recent uptick in sales has been due to the bad weather in LA, which I guess is a nice way of saying when the weather becomes nice again sales should slow down?
At one point he was talking about putting a location in Baharain or Central America, but now Boston or NYC is too far away. He wants San Fran or Seattle.
He has franchise interest but he's not warm to the idea because he is still holding out for a master franchise partner, and he doesn't want a haphazard network of locations across the country.
He is looking for potential partners to acquire -- presumably by giving them stock -- with hopes that associating with another brand will help him raise money.
Bottom Line: Nothing's changed. Parsi wants money. He says he wants it to expand, but you have to ask yourself, if he get $300,000 from WeFunder and he has to choose between spending it on staying a public company, and paying himself, or expanding, which is he going to choose? Because we know that in less than 9 months he's going to have to come up with $700,000; $300,000 to expand and $400,000 to pay the professional fees.
Look, I never pumped this. Like many, I believed 100% in the concept. And I still do. It's aces.
My failure was to properly vet management, and in particular, Joey Parsi. I got blinded by the potential of the next Chuck E. Cheese. And I started to justify the things he was saying to appease the shareholders until it became painfully obvious that he's just been blowing smoke up everyones butt.
Why am I here? Because I still believe in the concept. And because I believe that IF he somehow can raise money, then MAYBE he can actually start to grow the company.
The problem, of course, is that he has utterly wrecked the share structure. And at some point that is going to actually matter. I know it doesn't right now with penny pumpers and chat rooms and day traders, but in terms of long term potential, Joey had one chance and he blew it.
I don't need to go into the valuations in detail, but the short version is that if each location brings in $5M net revenue, and he gets 10 locations, thats $50M/year net he's pulling in.
Divide that by 135M shares outstanding, and that's .37/share. Not bad, but hardly the valuation anyone would think a growth company would be worth.
If each location brings in $500,000 (much more realistic) net profit, that's .037/share -- and this assumes zero dilution.
The offering was his one hope and he spent the money on other things, including his salary.
I'm hoping he can find a way to raise money. If he does, and the stock is still under .02, I may get back in because it has the potential to double. But unless this gets pumped by a chat room, as long as Joey is in charge, I don't see much reason for hope. I'm rooting for him, as much as I dislike him, because I like the concept and would love to have one in my hometown.
Yup. He's told so many lies and mistruths it is hard to keep them all together.
But what do you expect from a guy who worked at Barron Chase? Who claimed to be a top executive there?
https://nypost.com/2004/01/08/ceo-admits-fraud-over-12-8m-ipo/
Either he knew what was going on at the top, and was complicit, or he didn't know what was going on, and he overstated his role in the company. Which is it?
I still don't understand why he cannot reveal this broker's name? I understand not revealing potential partners the broker is making introductions to -- but there is no reason for an NDA for hiring what is essentially another consultant. He's mentioned everyone else who has joined in an official capacity...
Unless, of course, this is an arms-length deal that isn't official. Because the best brokers in the industry, the best of the best, don't work on contingency. They're time is too valuable, especially if they don't know there's going to be a deal. Think about that for a minute. I don't know what you do for a living, but do you work for free?
Attorneys will take a case on contingency, but only when they know it's a slam-dunk case. Usually the consultation is free -- and the consultation isn't for the client to decide if they want to hire the lawyer, it's for the lawyer to assess the risk/reward of taking the case.
But again, there's no reason he can't tell us who the broker is. It wouldn't in any way impede the broker doing his job. Something isn't adding up -- and he was VERY quick to point out that there are no guarantees.
Guess what: marketing isn't going to be free. If we wants to publicize the campaign, that's going to cost money.
The fact that he will just jump right into something that by his own admission he's never done and knows nothing about speaks volumes about his level of competency. At the very least, after the offering fizzled out spectacularly, you'd think he would have thought this GoFundMe type of campaign more carefully. At the very least, you'd think he might actually use GoFundMe -- at least that way he keeps what he makes, and it is a lot more visible of a platform than WeFunder.
Be honest--- who here had ever heard of WeFunder before the Giggles experiment?
The offer itself is perfectly easy to understand. The problem is Joey doesn't care. He's not even answering questions every day that are asked on there by legitimate potential investors.
It's just a bad deal. Invest in a single location, and receive a small percentage in perpetuity, knowing full well that there is low ceiling on how much net revenue each location can bring in. Assume the risk that your one location is going to succeed. Because if it doesn't, if he closes your location a year later because the mall its in is going to be renovated, you're SOL.
I mean, why not just buy the stock and recoup all the upside that comes with a growing franchise? Oh yeah -- because buying stock on the open markets does nothing for helping him raise money.
Exactly. This is all about him maintaining his salary. He can pay everyone else in shares, but at the end of the day, he's not worth $225k+/year. The fact he was making $300K earlier is laughable.
He already has people handling the legal, accounting, and compliance -- to a tune of $400k/year.
He already has people running the locations.
His day-to-day is basically taking the occasional meeting, to which I presume Phil is also taking some of the load off him, and brainstorming ways to make money.
What really bothered me about the call was that he literally said he fields 2 or 3 requests per week from Joe Average who wants to franchise a location. And he won't entertain those offers because they aren't big accredited investors who live in a major metropolitan area. For the same reason he wants Giggles to be in top-tier malls, where he has no leverage because the mall owners don't need him. Apple and Neiman Marcus bring in plenty of foot traffic on their own.
Joey still doesn't get it. The restaurants aren't the driver of profitability. It's the marketing and selling of merchandise. Ask Joan Barnes, on his advisory team (read: free shares for doing nothing). Gymboree started out as a kids gym. But its the clothing line that made it an enterprise.
He needs to expand wherever and however he can. Beggars can't be choosers.
One final thought: who else noticed that in previous calls he was talking about opening locations in Bahrain and Guatemala or wherever -- but suddenly Boston or NYC is too far away logistically? The guy can't even keep track of his own BS representations.
It isn't a fake business. But, it is a business being run by a second-rate, community college dropout CEO with a history of working at a firm where the top executives (of which he one one) were arrested for fraud.
It's a business that is spending $400k+ on professional fees and staying current.
It's a business that hides the fact it has a bunch of consultants masquerading as employees.
It's a business where the CEO repeatedly overpromises and underdelivers.
How's that renovation in Tanforan going? I'll buy 1000 shares to the first person who can post a link that the renovations are actually taking place.
So yeah, it's a real business. But so was Enron.
Update: He's talking about making acquisitions. And 30 seconds earlier, he said they can't expand because he has no money.
How is he going to acquire these brands? Issuing stock. Lots of it. Which means massive dilution.
How many people here got into this investment to own part of a mom and pop kids birthday party company?
This guy has too many ums, and uhs --- he needs to sign up for Toastmasters.
Update 2: At least the broker is working on commission. That is a positive sign.
Update 3: Why isn't he willing to tell us who this big time broker is? He loves to name drop everyone else!
Update 4: Celebrity spokes people icing on the cake. Yet Joey LOVES to namedrop all the celebrities that visit. Now he is downplaying the celebrity aspect when for the longest time that was the main selling point. Step in the right direction, Phil is obviously polished...I just wish Phil were more involved as the "face"
Nope, not trying hard. Just stating the facts. Parsi is a crap-job CEO.
As a penny stock gamble, there are worse options than GIGL.
But I'm just trying to wrap my head around the hype today -- if there is a genuine opportunity here, I'll gladly buy back in. My gut feeling tells me that the hype is going to die down and the share price will drop, too.
What makes anyone think Parsi will a) be successful with this crowd-funding campaign. b) He will actually use the funds, if successful, to expand?
Parsi has no idea what he is doing. He's even admitting that with his lack of knowledge about marketing. But here's the other thing -- marketing it properly costs money. Where is he going to find the money to do that?
Just not seeing the reason for the 50% pop today.
EPS is 0.00000
Company has been in business for 10 years.
I think that speaks volumes.
He literally just said that he is happy things are "flat" -- again, blaming the rain for last year's poor performance. Wow. Just wow.
We'll see. This company has burned many in the past. 50/50 odds it gets pumped and people who buy in .01+ make a lot of money, or it drops back to .006 and they lose 80%.
Pure gambling. Not sure if you've ever been on one of Parsi's famous conference calls, but it's usually a lot of him antagonizing shareholders, blaming everyone but himself for the company's performance, defending his $200k/year salary, and making promises that the future is rosy and he can't explain or control the share price dropping.
Good luck but I think this one is gonna head back to sub-penny land pretty soon, unless Parsi and his friends are buying shares to bring it back into OTC compliance.
Maybe. Or maybe Parsi has a 11 am tee-time today. Who knows?
Here's what scares me:
1) He has a terrible track record of overpromising and underdelivering. It's in his nature.
2) Parsi is just sketchy in general -- go look at his history as a stock broker, and the company he used to work for, etc..
3) His latest PR was full of ambiguities and disclaimers
4) The last time he raised money, not a single penny went to expansion. So even if the WeFunder campaign is successful, who is to say they open a new location.
5) Why hasn't he been able to open a new location in the last two years? What has suddenly changed to make GIGL more appealing to the mall owners? It's not the foot traffic story, that's always been there. So why would they all of a sudden decide, our mall needs a GIGGLES no matter what? Something just seems fishy there...
6) Today's stock price jump happens to coincide with a tweet from an equally sketchy pump and dump rumor site? One that in the fine print says not to believe any of its posts?
Invest at your own risk. If this does go up, it's only because it's being controlled by daytrading chat rooms. Nothing fundamentally has made this a better investment today than it was a month ago.
"To protect your interests the presumption should be made that all information on our website is inaccurate and unreliable until you personally have verified the information, never invest based on the information contained in our websites."
The only way this goes up is if someone runs it.
I'm on the sidelines. Too many times Parsi has made promises he cannot keep, what makes anyone think this time will be different? His PR was full of "maybes, hopes to" etc. Maybe the mall will offer them a lease despite their financial situation. But if that were going to be the case wouldn't it have happened already?
What about franchising? Remember when he said that was the plan to expand? What happened there?
Just too many unknowns, too much BS. The only way this goes up is if a chat room runs it up, which looks like it may be happening now. Good luck.
Bankruptcy is absolutely on the table, once Parsi runs out of ways to pay himself a ridiculous salary. So far he's done a pretty good job of using money that was supposed to be for expansion on G&A, but that'll eventually come to an end. And two stores are not going to bring in enough to sustain his salary long term, plus the $400k or so he claims to be spending on professional fees and staying public.
All I heard in this PR was blah blah blah...Tanforan...blah blah blah...bitcoin...blah blah blah...Bahrain...blah blah blah...frozen foods, etc.
The guy always overpromises and underdeliver. Won't even take the blame for his failed offering.
Why does it go down on positive news? Because the news, while positive, is only preliminary.
There is no guarantee that A273, or A371, or anything else in the pipeline will ever be worth more than a cup of cheap coffee. Yes, the evidence right now suggests that Anavex may be onto something but until there is a conclusive P3 trial with positive results, the data to date is subject to interpretation and scrutiny.
But digging a bit deeper -- the real reason the stock price will continue to trend down is because many investors, myself included, do not feel any sense of urgency with Anavex. I know that we're several months away at a minimum from any sort of positive, earth-shattering news on the Retts front, and even longer than that for the Alzheimer's trials. So why would I feel the need to buy the stock of a company that:
1) Doesn't generate any revenue. 2) Doesn't pay a dividend. 3) Burns through millions of dollars per year
Especially when lots of other stocks are on sale, and that have a much better chance of short term appreciation because one good earnings report will send their share prices flying?
Taking it even a step further -- lots of "longs" already have their core positions fully stocked. Myself included. Any shares I buy now are more than likely going to be for the quick flip. It's been many years now since November 2015 when everyone was high on AVXL, and those who haven't bought in now aren't going to buy in at all until there's definitive P3 data. Yeah, they'll miss out on the major upside, but they'll also reduce any and all risk that you and I and everyone else here is taking by holding at this point in time.
TL;DR: There is simply no reason to buy Anavex stock right now because there aren't any immediate catalysts. Yeah, there's always the chance for a surprise PR that will catch shorts off guard and make others wish they had gotten in -- something like a partnership or buyout is always possible -- but Missling has indicated he wants to go the distance on his own to keep as much leverage as possible, so the odds are pretty slim of a surprise partnership PR.
So far it's creeping closer to my prediction here.
Yeah, it went to $14/share when people were caught in the mania that Anavex+ was the real deal -- we later found out that Anavex+ was more or less useless.
That was when people were screaming $1000/share. Minimum. We know that's not the case now.
Is $14 a doable target again? Sure. But not anytime soon. It won't hit $14 again until we have positive P3 news. I think it could hit $25 or even $30 if it gets approved.
For those who say $250/share, I hope that's the case. But it's not likely.
It won't go up for a while. It'll most likely trend sideways, small ups and downs, with an overall downward direction...
unless and/or until there is news. and not bs, bogus news like "we announce a new addition to our scientific advisory board." the news that is needed is that they have good trial results for a P3 test -- because that will pave the way for FDA approval.
Until then though, as I've said repeatedly, I think this goes back to around a buck twenty.
Everything is predicated on positive trial results. That's the only way shorts will ever feel pain. As of now this is a shorts best friend. I don't think it sees 3 again until trial results come out...and if they're not good it will never see 1 again.
Favorable weather is such a BS excuse.
First of all, when the weather is bad people stay at home. They don't get in their cars and drive, or walk to the subway or train stations, or wait for the bus, etc. They're not going to drive in the rain to a mall, where they have to park outside and walk (with their kids) through a storm so they can go to an overpriced indoor playground while they're sopping wet.
Second, Parsi tried to claim that the downtick in birthday party revenue had to do with the good weather in LA. More B.S. People book parties weeks or months in advance without having any idea what the weather will be like on a given day.
$100k for legal, $70k for accounting and $50k for audit? That's absurd.
First of all, he could hire an in-house accountant for less than $120k. Second, what exactly is Philip Gay doing? He's a former CFO, make him do the accounting!
Second, the fact that Parsi acknowledges Giggles cannot afford to be a public company without experiencing cash flow problems is troubling -- why did he go public in the first place? Most companies don't go public until they are very, very well established.
This is the single most important reason why I gave up on this company: Parsi's salary isn't commensurate with his responsibilities or his achievements.
He doesn't manage the day-to-day. Presumably he has accountants running the finances, along with a CFO. His "job" is basically to go out and try to raise money -- which he's proven incapable of doing on every level.
He also can't be trusted. He claims it costs upwards of $400k/year to remain a publicly traded company -- I would love to hear how he justifies these expenses as every other source indicates it should cost significantly less for a company of GIGL's size.
And when he raised $500k in an offering, even though it was less than the $5M he wanted, did he return that money since the offering wasn't successful? No. Did he put it into an interest-bearing account to be used for expansion when he raised the rest of the money? No. Did he spend it on G&A -- which presumably includes his salary? Yes.
He claims that he himself took part in the offering. Do we know how many shares he purchased at .03? No.
He claimed to be stepping down because GIGL needed someone more experienced like Philip Gay to lead it going forward. Is Parsi still running the company? Yes.
How many people would have invested in the offering if they knew the money would be spent on things other than expansion?
Sometimes you can just look at someone and get a feel for what they're like. When I look at Joey Parsi, I see an uneducated slimeball douchebag who only cares about himself. What do you see?
Was reading through the WeFunder Q&A today when I noticed this gem:
"You are correct however there is an indirect benefit to investors in this third location. As the entire company grows and expands whether it’s additional franchise locations or like this, the more locations the more brand awareness and recognition, which translates to additional revenue for this location as for others.
In other words, if there are four locations in a city, and you invested in one of them, you are benefiting because of the brand awareness the others bring to the entire city.
Thank you
Joey"
Does anyone else spot the faulty logic? Joey was asked why someone would want to invest in funding a third location if any profits are limited to this location. Joey is mistaken that additional locations will bring about additional gains for this location because, at the end of the day, as a restaurant there is a finite amount of profit that can be made per location.
The Fire Department, for example, will only let a maximum number of people in at any one time. And because Giggles doesn't charge by the hour, and people typically spend a few hours there as opposed to at a regular restaurant where you get in and out -- the idea that each restaurant can make a lot more is absurd.
The company can make more money with additional locations for sure. But each location unfortunately has a ceiling on how much it can make due to capacity restraints and the ability to only serve X number of customers in a given day.
That is supposed to be Philip Gay's job.
The difference is that Ray Croc didn't decide to run McDonald's on a part-time basis, as "co-CEO." He didn't have a consulting firm with other clients who demanded his attention.
Exactly. If he couldn't expand when investors gave him $500k, there is zero chance he can expand raising only $300k -- which by the way isnt going to happen, this campaign will fail miserably, unless...
Parsi and his friends put in the rest of the money to reach the goal, and then find a way to repay themselves what they put in so that they essentially get to keep whatever money was raised from outside investors. I can totally see Parsi doing that if he's actually capable of doing so.
Actually, I would much rather invest in this restaurant than Giggles n Hugs.
Giggles n Hugs is also easy to replicate, but has zero brand value. A few blurbs five years ago in InTouch isn't going to do anything for the company, nor will an occasional celebrity visit. As I said before, celebrities would take their kids literally anywhere that offered a similar product -- they aren't brand loyal to Giggles n Hugs.
I don't think Parsi really wants this campaign to succeed. Otherwise, he would have asked for an amount of money that would be sufficient to actually open a new location. If he raised $500k in the capital offering and couldn't open a location, what makes anyone think he'll be able to open a new location with only $300k this time -- especially since the $500k he raised previously is all but spent on administrative fees that we've already proven to be outrageously expensive. Do you think he can actually justify the $400k/year to keep Giggles listed? That's a joke -- he's either getting ripped off and is too stupid to realize it, or he's taking advantage of the shareholders for his own gain. There is no other plausible explanation.
No, I think everyone knows that it doesn't cost anywhere near $400k/year for a company of Giggles' size to be in compliance with the SEC. Either Parsi is getting ripped off (best case), he's lying, or he's skimming from the top / receiving kickbacks (worst case). I don't know what it is, but I would love to hear him justify $400k/year cost of remaining public.
Per the document you posted, at most it costs $13K + whatever your corporate costs are for the accounting and legal. And there is NO WAY that it should cost $370k for an accountant to do Giggles' books and for an attorney to review everything.
Parsi is a lying scumbag.
Jillian's Rock Bottom Moment.
I'm shocked that she didn't say it was getting involved with Joey Parsi and Giggles n Hugs. That has to rank pretty low on her list of career/personal mistakes. I mean, we all made the same mistake but at least we are anonymous. She has to publicly live with the shame of knowing she was associated with that two-bit clown.
https://www.yahoo.com/lifestyle/jillian-michaels-rock-bottom-moment-fitness-changed-life-130137411.html
I have a plans to buy back at .0005. I think that is a fair price for this POS, with hopes that if I hold it long enough the chat rooms will eventually rediscover it and pump it back to a few pennies.
The idea is great. The management is incompetent. Parsi seems to think that because $9M+ has been invested in this concept to date, that somehow is indicative of its current enterprise value. It isn't.
If anything, the fact over $9M has been invested and there are two locations, and the company is still losing money despite each location showing gross profits just demonstrates the ineptitude of Parsi and his team.
If WeFunder is successful, what is $300k going to do? He raised more than that in the offering with promises of expansion and used that money for other things, including his salary.
Only way this goes up is if the chat rooms pump it again. Which is definitely possible but that's a terrible reason to hold or buy.
Parsi is a moron.