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It’s a fantasy until it isn’t. Until then I find it useless.
I think we should be discussing (and trying to find out) whether the existing rights offering is beneficial to shareholders or detrimental.
What exactly does Parsi mean by “general corporate purposes” and also what amount is required for the company’s “plans to use a portion of the proceeds to further strengthen the company's balance sheet by repaying certain outstanding indebtedness.”
It’s much simpler than that. Current market capitalization is $4,000,000 divided by two thriving locations and a little over 100k in cash which will be gone soon.
With two thriving locations and let’s say $3,000,000 in the bank leftover after Joey pays some debts how many locations would QIC be willing to front build out costs for? Let’s assume the 12 locations Joey previously proposed would happen this year happens in the next two years.
Ok so fast forward 24 months and there are now 12 company owned locations.
So the real value of these locations let’s say is 3 mil each.
Let’s say the market capitalization goes from 4mil to 36mill
But that doesn’t factor in franchise locations or a forward looking valuation from an increasing price to sales ratio.
If $GIGL goes from having $100k in cash and just two operating locations to having over $1,000,000-$3,000,000 in cash and 12 locations does it really matter if the OS is doubled or tripled?
Also, are all of these shares added to the OS? Or are any of them preferred / restricted?
The only thing that will create shareholder value here is funding for expansion. Not some fantasy investor swooping in to save the day and take
Joey out of his misery.
In my opinion the funding IS the good news. Without sufficient funding he can’t do anything other than sign a celebrity pastry chef next. Fluff doesn’t move this anymore. It skyrocketed in February and March because of speculation of growth in 2017 was imminent.
Now it’s 2018. Raising up to 5,000,000 this this offering is not that dilutive.
A small handful of wealthy people may be interested and several locations would open next year. Thus gross revenues would increase and likely gross margins.
Greater investment will only come with anticipation of earnings growth. It’s that simple. There is only so much revenue one location can net so it’s all about expansion or at least the “start of it”
The Q3 filing on time should not be overly scrutinized in my opinion. Joey has 26 million shares and doesn’t want to resort to toxic funding options but within the next 6 months they will certainly need additional capital. Thus the rights offering he has conjured up. I think Q3 was filed on time so he could make sure nothing would delay approval of the offering.
I think it’s that simple. The guy needs money and he thinks he has found the best way to get it.
Have you considered averaging down?
It seem that your theory is based more on your avg share price than what is probable. You are hoping for a Hail Mary. You might be hoping for years.
That’s the rub.
Joey seems to be sincere but inept.
Jillian was hired way way way before Bahrain was even on the table. The interview on Extra came out before Bahrain was looking more bleak.
2 Existing
1 in Tanofran
2 in Bahrain
And the 1 Century City location is supposed to reopen?
This was my original idea regarding the number she came up with.
Honey, there’s nothing to “pick apart”
There’s nothing to your theory. It’s not even complex math. It’s meaningless clutter on an otherwise decent board.
Your “theory” isn’t complicated. It’s not even new. It’s your “idea” about how to save / grow this company and unfortunately you don’t have 5 million to invest yourself. So if you did have that kind of capital is that how YOU would spend it? It seems to be that IF someone with money wanted to invest in $GIGL they could buy up less than 5% of the OS and then make another 2-7 million dollar investment IF they wanted to. It means nothing. It theorizes nothing.
How about this “idea” for you. If I had $5,000,000 why wouldn’t I wait for this rights offering to be approved and get 21 million shares. At a discounted price 2 for 1? Buy up to 7 million shares now knowing I’m going to bail Joey out in the near future.
I will not waste more time “picking apart” your “theory” I will pick apart your objective.
What is it then? Are you hoping someone with access to capital will read your post and get an “idea” and follow through on it and save all the bag holders here yourself included?
I can’t think of any other reason for
you to post day in and day out about the same “idea”
Would you mind only posting these fictional ideas once per week? Or maybe once per day? Let’s try to keep this board about facts, figures, potential, etc
Nobody makes trades or investments based on fictional ideas about “what if” scenarios which almost exclusively focus on some type of financial “bail out” by some deep pocketed whale with capital exuding from their pores who has interest in taking over a company like GnH.
Try to focus on reality for a minute even if it’s difficult for you.
Best~
“As I have already mentioned, in order for us to expand, we will need additional capital, which is a vital component of our growth plans,” Parsi concluded, "we are very excited about the future, and with the expected funding coming into place, we think our best days lie ahead". Thank you for your continued support.”
Sounds great! Always sounds great. So what’s the hold up? Why is it so difficult to get funding? Why is this funding still just “expected”?
God morning guys and girls.
Looking forward to 2018 here
I will post any response for sure
I am long...not selling... but this stock isn’t for “trading”
This is a long term investment
We will likely see sub $0.02s again
Sorry for the poor joke if it was in bad taste but he hasn’t responded yet...thus his reply is just empty
He’s never responded to me and I’ve emailed him 3 times now.
Is this the correct email ?
Joey@gigglesnhugs.com
And here was his reply:
Here was my email sent yesterday to Joey:
Mr Parsi,
Why do you believe the main reasons for the decline in our stock price in recent weeks is from the selling from St. George? 9,000,000 shares isn’t much for the market to absorb if the market feels like expansion is imminent?! The largest share volatility happened in the months of April and May. Before this arbitration or the settlement thereafter was even announced.
Is it not more likely there is a lack of confidence in the company’s future and stock due to not even one previously announced letter of intent closing?
Perhaps your aspirations are too great for current investors to take seriously? What amount would be required to open up just one new location? What amount of cash on hand would a mall developer want to see on the books for them to agree to pay the majority of build out costs?
The rights offering doesn’t make any sense at current levels.
The website says the century city location will be opening soon on the “west side” is this dated info or is this accurate?
Regards,
Luke
Sent from my iPhone
One of these days will be the start of a multi day marathon here
Too funny!
I hope that’s a GTC order lol.
Not expecting any interest here until one of two things happen
a) funding
b) expansion
c) both of the above
Without either of these developments the best case scenario is current investors seem to have a death grip on their shares.
Since this is the current reality, it’s better not to expect more than this and get others hopes up as that could lead to short term selling when when people are disappointed
People should not be expecting much interest to be generated from that otherwise decent 10q
The interest will come here with expansion or something “tangible” as you say. I got time to wait. I’m not counting on this to happen tomorrow.
When expansion does happen we should see previous highs with greater volume and anyone who currently feels “stuck” will have plenty of volume to sell their shares.
Parsi must deliver on this “funding” he keeps saying is imminent
a) you got a response
b) not a bad response
c) thanks for sharing
...this part: “Finance and interest expense . The total finance and interest expenses of $12,876 for the thirteen weeks ended October 1, 2017 decreased by $238,145, from the $251,021 for the thirteen weeks ended September 25, 2016, and was due to lower debt.
Net Loss. The overall net losses of $187,253 and $650,739 for the thirteen weeks ended October 1, 2017 and September 25, 2016, respectively, reflects a decrease of 463,486. This significant change was due to change in fair value of derivatives and finance and interest expense during the same period last year.”
“At October 1, 2017, the Company had cash on hand in the amount of $104,135. Management estimates that the current funds on hand would be sufficient to continue operations through December 2017. Management is currently seeking additional funds through sponsorships and promotions to operate our business.”
On a stock like this which is relatively undiscovered, I like to see that no one is selling. Especially after the latest PR. It’s really good to see the price hold up on such lack of volume. We are expecting growth. We are expecting news.
You should contact the CEO regarding any of your thoughts. I’d be curious to see what info we can gain regarding their actions vs plans for the for 2018 and the rights offering.
Doesn’t make sense to go through with the offering if the share price is under $0.10 IMO
Zooming out to the bigger pictures shows 4 out of 5 weeks of recent trading we $GIGL has closed higher. Although we opened at $0.0379 this Monday, a Friday close over $0.0344 is will be considered a green week. (Closing higher than the previous weeks close)
Float seems locked pretty tight. Anyone who didn’t sell in the past year is likely waiting for long term tax benefits. Let’s see how high we can climb in the next 3 months. The real run didn’t happen til February 2017 so we have plenty of time to climb before existing investors consider selling
Looking good. I’d say we break a nickel very soon!
Bids support is constant and heavy.
SGI done. Only so many quick flippers left...
The way this is trading we could see double digits before 2018
Mid 4s likely this week.
$0.50 not gonna happen until there is actual “growth” until then maybe $0.10-$0.15 range based off expectations for what they’d be able to do with secured funding.
If they start rapidly expanding this will see dollars.
I prefer to close in the 3s today and end next week in the 4s or 5s. Slow and steady instead of the recent see saw action with all the flippers taking quick minuscule profits.
My opinion is this “needs to be” in the $0.05-$0.10 for any rights offering to make sense...and that is what Parsi is looking for.
I would say there is something else cooking... the bids are too consistent
Nice to see 3s print today
You mean bid