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A promo which doesn't give time of day, for a show not listed by the carrying network in its online schedule OR in Comcast channel guide, will not be effective, whether it is that show's premiere, or 20th show. Note network promos even for long running shows (American Idol, CSI, Big Bang Theory, etc.) show day and time.
So to Comcast: I subscribe to Comcast in Western time zone, so I thought I would check out the Comcast channel guide for Oct 11, now that we are just about there. I see weTV half hour paid programming slots from 2AM - 7AM (the 5AM to 10AM on the weTV website is ET). For 5 of the 10 slots, a show is named with some 'teasing' info and pushing the 'info' button on the remote provides the full 'tease,' they are all clearly paid advertisements. The rest just say 'paid programming.'
I am sorry to report that Grounded in Seattle is not one of the 5 shows named. For those interested, the 'lead in' for GIS is unnamed 'paid programming.'
The above also suggests that GIS airs at 6:30 AM in the west, BCCI's largest market (Seattle). I am recording at 6:30 AM and 9:30 AM 'just in case.' But for those in the west who saw the PR and assumed 9:30 AM was a 'national' time, they may be disappointed if they tune in and see a Will and Grace rerun.
Perhaps BCCI couldn't afford separate promos for all time zones (though why not say 9:30 AM Eastern Time) -- but then how are they affording production of the show or the airtime?? And with the show not listed by weTV or Comcast, or time given by paid promos, how will someone find it??
For those in Seattle who went to the Tavern by Seahawks stadium to see the GIS stars -- was air time shown there, and if so what was it??
Perhaps others can advise about DirectTV or DISH channel guides, and seeing promos in other geographies.
Apologies -- my prior post was in error while drafting.
A promo which doesn't give time of day, for a show not listed by weTV, will not be effective, whether it is that show's premiere, or 20th show.
Note that network 'spots' for hit shows like Survivor, CSI, American Idol, etc. all list time of day, even though the shows are easily found on cable or satellite channel guides, and have been showing at the same time for years.
And the concept of spending money to promote paid advertising seems strange in the first place -- unless of course you are promoting a new 'spot' premiering on Super Bowl TV. Which this is not.
GIS promo should advise time of day -- since searching Grounded in Seattle on weTV will not provide that. But it doesn't, not very smart IMO.
BCCI PR promised national radio and TV advertising for the show -- anyone outside of Seattle seen/heard anything??
Folks may think it is NOT 'paid programming,' but weTV is showing only 'paid programming' Oct 11 at 9 AM, and searching even 'Seattle' on the website comes up empty -- other than the famous Sleeping in Seattle.
weTV at 9 AM on October 11, per PR.
If you go to weTV's schedule for that day, http://www.wetv.com/schedule#day/2014/10/11, you will not find the show listed:
5AM - 10AM Paid Programming
Well said, agree all.
On the reality show, hopefully more than a single episode -- but have to wonder why so much effort (regional and national advertising, per the PR; pub near Seahawks stadium) to promote a show which doesn't even show up on the carrying network's program guide.
And, you have to wonder where the money is coming from to produce and advertise the show -- and if these resources are available to BCCI, is this a good use for them as opposed to, say, opening the sports bar.
I also do not believe this is a scam (I could be convinced otherwise if there was evidence of insider selling on the so-called 'pumps'), but between Ice cream in New York and a reality show on the one hand, and failure to open announced stores in SW FL and Knoxville on the other, you have to question management capability.
For the sports bar -- I agree, better in the 'home base,' strategically (as would have been the ice cream); probably something that came up opportunistically, and 'closed' without determining whether there was financing available to actually open and operate it. Again, calls management into question.
Note the master franchisor has been the operator of the bar, so perhaps less risky that way, but it had been losing money; the operator's hope was likely that new branding would help.
Note the master franchisor committed to $25,000/month for advertising for franchisees, wonder if that has happened? Given failure to open the sports bar, I am guessing with you it hasn't. Wouldn't know 'out west,' as logically the advertising would occur in the 8 state area back east. If it has happened -- no indication of effectiveness with nothing announced after 4+ months.
If you believe in BCCI, invest directly.
As the financials show, Mr. Henthorn has sold common stock direct to investors at well below market pricing -- though with almost all authorized shares gone, he might not be willing to at current pricing.
But he might be willing to sell preferred stock, which converts into common at 1:1; he and the other senior officer acquired almost 6M shares of that last fall at an effective price 50% below then market (caveat: there are not sufficient shares of authorized common available to effect the conversion, but Mr. Henthorn is personally incented to figure that one out.).
BCCI has proven to be a good trading vehicle. If the company can:
- open its announced stores (SW FL kiosk, 6 months overdue versus press release date expectation; particularly the Knoxville sports bar, 2+ months overdue); and/or
- publish financials which are not as bad as people are probably fearing (since their publication is more than a month past the usual publication date for Q2); and/or
- announce a meaningful franchise agreement through the 8 state 'master franchisor' announced over 4 months ago,
the stock would likely 'pop.'
I am less convinced that the actual debut of the reality show on October 11 as paid programming on we TV will create much 'pop,' as the stock price logically incorporates that expectation.
104.9 The Brew (KKBW) bills itself as Seattle-Tacoma's Boob Based Active Rock, so perhaps an appropriate place to advertise the upcoming reality show.
Mr. Henthorn announced that the promotional campaign for the show would be national, including TV and radio; have any posters heard or seen advertising outside of Seattle?
Meanwhile, you will not find "Grounded in Seattle" on we TV's schedule for 9AM on October 11; instead, this is a time of day reserved for paid programming, with normal programming beginning at 10AM. If you search "Seattle" within the schedule, you will not find the show.
I continue to wonder about the business model; how is the show's production and air time being funded? If by a third party, you would think that party would be named in the press releases which have been issued. For me, I continue unconvinced that the reality show is a good use of BCCI resources -- which for me should be focused on attracting franchisees, who in my mind are not likely to be watching we TV paid programming on Saturday morning.
There is no such radio station.
I heard the radio spot on kbrew
Look forward to hearing a poster's review after hearing one of the national promo ads.
I'm not sure profits are required for positive stock price action, although for a company with a static store count for the last 2.5 years, one would expect profits.
But to have positive pps without profits, the company has to perform on its growth initiatives -- which at a tactical level would mean opening previously announced stores (SW FL kiosk; Knoxville sports bar).
More strategically, BCCI needs more multiple state franchise agreements, since it does not have the cash resources to open more kiosks on its own. A single multiple-state master franchise agreement was announced four months ago -- with a single store opening announced (Knoxville) for July opening, except it hasn't and we are now up to week 4/5 of the football season.
It should also publish financial statements at a reasonable interval. Positive points for coming out with audited ones, at long last and after a false start, earlier in the summer. But, the Q1 financial statements are now a month 'overdue' in my mind, since they were published in August in 2012 and 2013.
Seahawk game events promote the show in Seattle -- no indication of broader reach.
Per my prior post, the we TV website shows the Sat Oct 11 9 am time slot as paid programming, not even listed by name -- in which case it is 'sustainable' as long as someone is paying for it, which when you think about it is also true for commercial television shows (advertisers). Perhaps that designation will change as the premier date grows closer.
weTV schedule shows 9AM 11 Oct paid programming.
I have previously questioned reality show business model.
I just googled the we TV schedule, opened the current week, and scrolled across to October 11:
http://www.wetv.com/schedule#day/2014/10/11
You can't get to am programming without clicking at the top of the schedule on 'show earlier listings' -- and then it shows that 6:30AM to 10AM doesn't show details,says 'paid programming.'
Thinking that perhaps the schedule wasn't up to date, I went back to Sept 25 (tomorrow) -- and it says the same thing!!
Sounds like BCCI is in the infomercial business; how funded -- who knows.
Net, I don't understand why the announcement of this show caused a large spike in BCCI market value in August. On the flip side, does show Mr. Henthorn's mastery of PR. The question is whether PR is an investment proposition. I think not -- but may be a trading opportunity, albeit with reducing spikes as traders become less impressed with PR versus performance.
Hope you will post the pictures, gives us a 'sneak preview' of the upcoming Oct 11 premier.
But for me, I'd like to see company performance:
- Q1 financials (a month late, versus publication date the last two years). I have no idea if they are good or bad -- but inability to even publish, after all the effort to develop audited financials earlier in the summer, is not confidence inspiring.
- Third SW FL kiosk opening (5 months late, versus expectation set in Jan 22 PR). Critical, to show franchise model viability.
- Knoxville sports bar opening (2 months late, versus expectation in May PR). Critical to demonstrate ability to finance and then profitably operate this very interesting brand extension.
Glad they are able to have pretty girls sell coffee at a pub near the seahawks stadium, but that is not stock value IMO. And not in the opinion of the market as a whole, given pps action over the last ten days -- down 10%, roughly.
How do you calculate great volume -- $60K vs a $15M market cap??
Curious -- were they selling coffee, or free?
Anyone know how many episodes have been ordered?
Another indicator of more episodes will be advertising. How many minutes the first week, and does it grow in subsequent weeks. Will also be interesting to see who the advertisers are.
Henry's Tavern, a boost to Seattle kiosk sales. A good thing, as improving kiosk sales and moving to profitability provides money for more promotion and helps prove the business model to potential franchisees.
Additionally, could help build at least a Seattle audience for the we tv show, although the concept of having the TV stars regularly at local venues obviously does not scale nationally.
I am surprised it is CBS Radio -- a national brand, home of CBS Radio Sports Minute, for example, as opposed to the local affiliate of CBS Radio. We will know more about that on Sunday; those listening to games on CBS Radio outside of Seattle can report.
For those in Seattle, will be interesting to learn the business model at Henry's Tavern (coffee for sale or free), and number of mentions on the radio.
Good catch -- I missed the Saturday part.
We tv's target market, per a 2010 quote:
From getting married to having children and raising a family, WE tv understands what's important to women and delivers the shows they love....Our viewers are intrigued by stories that show how other women live and experience life.
Asus, a minor but important connection. You say:
The stock could soar merely because there will be more buyers of it. More stock sales, means more disposable income for the company.
LOL. Agree all.
I am simply questioning show's value for BCCI.
- What are its economics for BCCI? Not stated, to the best of my knowledge.
- It might build some brand awareness in the few markets BCCI has kiosks (and perhaps for ice cream if still being sold in NY area, anyone know?), but that is small potatoes from a foot print perspective. Plus, women are not the 'target market' for the coffee kiosks.
- This show on a network watched mostly by women is unlikely to build interest in male oriented calendars and baseball caps sold by BCCI. Speaking of which, hard to find the 'shop' on the BCCI website -- and the calendar is still 2014.
- We seem to agree it is unlikely to attract franchisees -- and that is what this company needs if it is to grow.
I know folks have indicated a level of excitement about the show -- the stock jumped from .0525 to .069 on announcement in August, but I am not sure why, given the above. Perhaps instructive to note that the announcing PR is not even on the company's website -- although the PR for this Sunday's local star 'unveiling' at the Seattle Hangar is!
But the stock has drifted back down since, to .0535 at this writing. To be fair to the show -- that reduction may be more about failure to perform (no Q2 financials; no 3rd SW FL store; no Knoxville sports bar) than about diminishing perception of the reality show's value to the company.
Agree.
Surely management should not be spilling sensitive information to their favorites in the first place?
Apologies to the fish.
Reading on, I see he has withdrawn his support of Mr. Bendall.
Let us all hope his successor is better connected -- to God, the Australian authorities, and funding sources.
Having said the above, I still think it is appropriate for us to respect management requests for confidentiality.
Yes, hype about reality show for October opening, but the hype seems to be local in Seattle and this is a national show.
But there is likely investor concern about the fact that announced third SW FL kiosk and announced Knoxville sports bar are long delayed (5 months and 2 months, respectively), with no company explanation. So maybe there is cynicism as to whether the reality show will actually happen and if it does happen, how long will it stay on the air. Key will be ratings and advertisers.
Worth asking the objective of the reality show. Is it to drive customers to existing kiosks? That objective covers a small percentage of the country. Is it to attract franchisees? Somehow, a morning show on a stay-at-home Mom oriented network, doesn't seem obvious as a match.
Also, why no financials -- Q2 was published in August in 2012 and 2013, perhaps you are right about negative contents. I was hoping Mr. Henthorn was busy looking for financing for the delayed openings, but instead I guess he was organizing the local Alaska Hanger deal.
Just too much uncertainty and failure to perform to attract investors to a company with declining revenue (per Q1 2014 financials, Q1 14 down 15% from Q1 13).
Audited financials were published July 22 as part of a Form 10-12G SEC filing. But your characterization of the 'bottom line' is fairly accurate; indeed, 2013 losses were greater than revenue, and double 2012 losses versus profitability for those two years as shown in the unaudited 2013 financials published in April.
Note that when Q1 financials were initially published on June 5, they were incorrectly stamped as 'audited,' and when Q1 was republished on June 17 they were different. They did show a significant reduction in quarterly losses from 2013 -- but also showed revenue down about 15% versus 2013, not good for a self-proclaimed 'fastest growing company' unless competitors had a bigger decline -- which would make the BCCI marketing true but IMO misleading.
Note that quarterly financials are NOT routinely audited -- even for NYSE companies, although they are subject to a 'review' process by their CPA firm (when I was a CPA I used to do reviews -- they don't take a lot of time. You just look at ratios and ask questions, for example if cost of goods is a hugely different percentage then previously, or if there was a large 'spike' (up or down) in any of the numbers from previous quarters/years).
Meanwhile, publication of BCCI's Q2 report is long overdue, with no explanatory message from management. For the last two years, Q2 was published in August. Perhaps Mr. Henthorn is instead busy trying to find financing for this year's announced but significantly delayed locations (SW FL coffee kiosk, Knoxville bar), in which case a mulligan is arguably in order.
Good post.
If you go inside the second link, there is a subsidiary link speaking about 'breastaurants' in general, particularly Tilted Kilt. Points out that Hooters' business is in decline -- but competitive chains, which apparently are more 'revealing,' are doing quite well.
This suggests that if opened, there could be good upside for the sports bar concept as it evolves.
How is .10pps value calculated from published numbers?
If you can explain that persuasively enough, including comparables, maybe the pps would reach that.
Perhaps it will help if Q2 financials are published, depending on content. Note that reporting companies publish in 45 days, last year's BCCI Q2 financials came out in August, but BCCI is now about 70 days and counting.
But meanwhile, the audited financials turned previously reported profits into losses, with 2013 losses doubling 2012 and even exceeding revenues -- which were themselves reduced about 15% from previously reported levels. Q1 financials showed declining revenue year on year, and again a loss (though significantly reduced from the prior year).
The company has also not been able to perform on PR:
- The third SW FL store announced for 'early Q2' is apparently still not open. Critical, as SW FL is a 'proof point' for the franchising model.
- The baristas-themed sports bar announced in May for July opening in Knoxville has apparently not opened yet. Critical, as this is the model for an important brand extension.
- The major advertising push for new franchisees, in place for six months, has not resulted in a single announced coffee kiosk franchise.
Hopefully, the announced October reality TV show will happen with good ratings, and the stores will have opened.
If financials show improvement, perhaps pps will as well (note: sports bar will have start-up costs, hopefully those will be separately discussed to enable meaningful evaluation of the numbers).
Yes -- needs to open (July was announced) and be profitable. There is no doubt it will be a revenue multiplier.
BCCI in Seattle may benefit from the demise of Java Juggs and Twin Peaks, either due to less competition or cheap acquisition of kiosk sites.
But such gains are marginal, in the overall scheme of things; the keys to this company's ultimate success and market cap are a larger national footprint and brand extension such as the announced Knoxville sports bar, done profitably.
The company engaged in a significant advertising push last Spring ($1M plus, depending on how much of the announced (Oct 1) $1.7M media buy from MFG was spent on the SW FL openings) to attract franchisees, resulting so far in only a single announced agreement, an 8 state 'master franchise' agreement with BMOC.
This was a complex transaction, per the announcing PR; it included BMOC promising $25K/month in national advertising to find new franchisees, plus BCCI owning 51% of a JV with BMOC to turn Pavilion 117, a sports bar previously operated by BMOC, into a baristas-branded sports bar presumably to continue to be operated by BMOC. This bar was announced to open by the end of July; not open yet.
Net, despite significant advertising expenditures over the past several months, not a single kiosk franchise deal has been announced. This does not speak well for the appeal of the BCCI kiosk business model. Hopefully the sports bar business model may be more favorably received by the investment community, but that requires profitable operation.
Perhaps the reality TV show will create national brand awareness, but the audience for we tv at 9AM is mostly stay at home women -- not sure if that will promote franchise sales for a coffee kiosk business and sports bar concept which appeal to males. It will be interesting to see who advertises on the reality show.
I never suggested false operational announcements -- though at the end of the day investors get to choose between false announcement and inability to execute. I personally believe it is the latter. The questions become, why no execution and what does that mean for the company's prospects?
In the case of the NJ kiosk, announced in May, 2011 as expected to open within 120 days as the first of five planned Monmouth County locations, likely the company's franchisee has been unable to get appropriate permits and/or financing for opening. Obviously that challenges the premise of the business model, and would be concerning to potential franchisees. Worth noting that the new BMOC agreement excludes this territory, so one could think the prospective franchisee continues to work on it, which if true could be viewed as good or bad news: good that Mr. Pagano still believes in the concept, bad that it so hard to accomplish. But, the announcing PR is no longer on the BCCI website, so my guess is that exclusion of this territory is simply a legal exercise. Of some comfort might be the fact that Mr. Pagano had no stated experience in the restaurant or construction business, and I am sure there is LOTS of red tape in NJ.
The SW FL kiosk, announced in late January for early Q2 opening, was to be the third for the SW FL JV. The Q1 financials appear to show that the JV partner purchased equipment for the kiosk. The company has not announced why there has been a five month delay past an expected three month opening process. I have previously speculated that the JV partner was put off by the $8K/mo/kiosk losses being incurred by the first two kiosks in Q1, despite significant advertising and marketing expenditures (free coffee, etc.) in Q4 when the first two kiosks opened. It is important to BCCI franchising prospects that this JV be successful, as it is a 'proof point' for prospective partners. So far, not looking positive based on published information and the unexplained delay in opening this third store. Do any posters live in the area, perhaps see a unit under construction?
The Knoxville sports bar is the first project in the 8 state 'master franchise' deal announced by BMOC and BCCI on May 20, a key part of which was BMOC also spending $25K/month on national advertising to attract franchisees (PS. Has anyone seen these ads??). So, critical that this project be successful as a proof point for brand extension and BMOC confidence in financing franchising advertising and being a master franchiser. Late opening hopefully just construction delay, as opposed to construction and operations financing -- but now is 'prime time' for a sports bar in TN with football starting. Hopefully opening VERY soon -- any posters live nearby, see appropriate activity at the site?
The BMOC franchising and Knoxville sports bar PRs are NOT on the BCCI corporate website -- surprising, since these are important initiatives for the company, and logically prospective franchisees would go to the corporate website. There is also no 'mock up' of the sports bar on the locations portion of the website, although there is of the third SW FL kiosk. For me, not to suggest scam -- but more to question execution. Although, cynics may counter that the company does have a history of taking down PRs (example, the Oct 1 13 PR announcing procurement of $1.7M worth of advertising; the NJ franchise deal; Prime Equity Research report in early 2012). But again, this may simply be execution, as PRs that might logically be taken down (Tully's related; 5 store Phoenix deal; 10 store (+ options on 20 more) TX deal; opening of Tempe, AZ store, etc) are still up.
Caveat: I do have concerns about the appropriateness of PRs which have related to uplisting over the last couple of years, since the company does not come close to meeting published financial requirements. But that subject has been fully covered by others on this board.
Not sure of logic re: sports bar update.
Was announced to open in July, and it is now September, with no update.
But, if investors have given up on its opening, since published opening commitment -- like the third SW FL kiosk, three Phoenix kiosks and a NJ kiosk -- not kept, then agree that an actual opening could be viewed positively by pps, at least in the short run until profitability is determined.
But overall, company is establishing a track record of lots of talk and no or very delayed (audited financials) action. I don't think that creates long term credibility. Perhaps a successful reality show opening will help restore -- there, at least a specific date has now been offered, after two years of verbiage. SW FL kiosk and Knoxville sports bar are only 5 and 2 months overdue, respectively. NJ kiosk is three years late -- but actually referred to in the recent eight state distribution agreement PR, so maybe it will happen.
Barista prostitution stories occur every so often. Of course this creates a problem for the industry's image, where the plan is to tease only.
But you start to understand why BCCI has a hard time finding franchisees, particularly multiple units such that there are desirable economies of scale for management, advertising, etc. Unlike Hooters, where servers work with many others, the coffee kiosk business involves one or two baristas in an unsupervised situation. Would you expose $100K - $200K of capital per kiosk in a business with only marginal profits, against that risk??
That is why the sports bar brand extension potentially makes business sense. In May, BCCI announced a Knoxville sports bar to be opened in July -- it is now September, no sign of it based on internet search; and now should be 'peak opportunity' as football season opens. No word from BCCI, but not an unreasonable hypothesis that BCCI is having difficulty finding financing for the rebranding, given that two other attempts at a restaurant/bar in this very location have failed over the last two years (Quaker Steak & Lube/Pavilion 117).
Texan -- I don't know how to read charts.
My quick look at the yahoo.com/finance chart for BCCI showed three 'trades' after 11 am of over 100K shares, and all appeared to be 'down' trades. So, please help me with your data for the 'positive, high volume' comment.
Would love to see some up ones -- but BCCI needs to either perform on their commits (SW FL kiosk opening (promised for early Q2); Knoxville sports bar opening (promised for July); uplisting (promised, but realistically not obtainable given the listing criteria); strong reality show ratings so it stays on the air (Oct); or another PR push, to get the stock to 'pop.'
Or, perhaps the pending Q2 financials could show the business with increasing coffee kiosk revenue growth after the 15% Q1 2014 over Q1 2013 decline (may be hard to tell, if Knoxville bar is not separated out as a different segment), and profitability (after the increasing losses of 2013/2014) -- that could result in a pps 'pop' as well. Particularly if SW FL becomes profitable.
Or perhaps good news on ice cream revenue, upon which the company spent at least $500K; PRs back in 2012 (or was it 2013?) said it was in 250+ stores in the New York City area.
Publication of Q2 2014 financials (due 8/15 for reporting companies, which BCCI intends to be) will create discussion; note that Q2 2013 financials were published Aug 27 2013, so hopefully will happen soon.
I am sure there will be additional discussion if the promised store openings happen. Recall the two pending openings:
- SW FL kiosk. Announced Jan 22, 2104 for 'early Q2.' This unit is important as the SW FL stores are the closest the company has to a 'franchise' model. 2014 PR efforts have been heavily focused on finding franchisees, and this is a key proof point (for better or worse); unfortunately, the Q1 financials disclosed that the SW FL stores lost about $8K/mo/unit in Q1.
- Knoxville sports bar. Announced May, 28, 2014 for 'late July.' This unit is important as it represents a significant brand extension; can the company finance its opening, and run it at a profit??
Absent the above happening, IMO the stock, and discussion board, will drift along until the next PR event. I would fully expect a PR 'flurry' in advance of the reality tv show premier in October; if that opening pulls good numbers in the first couple of weeks, could certainly help.
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??
You see $10/share? Wouldn't want to be next to you on the highway.
Resultant $3B valuation for a company with $1.5M in annual revenues (and 15% shrinkage year on year per most recent quarter reported, Q1), losses doubling year on year (2014 versus 2013), seems more than excessive.
Arguably $0.10, $30M, is excessive. And hard to defend fundamentals at current $18M valuation. Perhaps openings of the delayed stores in SW Florida and the sports bar will cause the stock to push higher, but at the end of the day have to make money.
And the business model of the reality show has not been disclosed -- hopefully not dilutive or cash draining for BCCI, but not clear how it is accretive. If a positive model, wouldn't BCCI have announced it??
I view BCCI as a trading vehicle, not a long term investment vehicle based on the fundamentals.
Anybody have any news on opening of the SW Florida location or the sports bar??
All agree on the need for revenues.
Mr. Henthorn said the rethemed sports bar would double revenue in the third quarter. Of course, it has to open first -- the May 28 PR said it was supposed to open in July, nothing has been announced. The PR also said that it would be opened during the majority of the remodeling, but one poster noted that they had gone by and found it closed.
Similarly, the third SW FL kiosk was supposed to open in early Q2, per the January 22 PR, but it has apparently also not opened.
And Q1 2014 revenues were down 15% from Q1 2013.
So, we are agreed that revenues need to go up. But, they also have to be profitable revenues; 2013 losses were more than revenue and more than double 2012 losses. And annual revenues were up less than 15% from 2012 to 2013 -- hardly a growth story. Particularly with store count up only from 8 to 10 in the last 2.5 years.
Many posters have noted the company's advertising 'push' for franchising (Forbes, etc.) -- which I agree is important for expansion, since the company is unable to raise cash for expansion via equity. But, the closest thing to a franchise operation is the SW FL business, where a third party has invested significant capital. And the company supported the initial stores with significant advertising in Q4. But, in Q1, the two stores lost about $8K/store/month (per recent filing, look at Minority Interest line) -- while average revenues per store are not even $15K/store/month.
Not clear what the business model is for the reality show. This is a national network, yet BCCI only benefits if people go to the ten kiosks they have (and the sports bar, assuming it does open). Or, buys ice cream in one of the 260 NY area stores announced as carrying it two years ago (anyone know if they still are??) TV runs on advertising -- no advertising, can't pay for content. Some companies are blatant about it -- infomercials. Will be interesting to see who advertises. I had initially thought the reality show was sort of 'T&A,' but that is clearly not the focus of we tv.
There is value in having audited financials.
But when they show that losses were more than revenues in 2013, rather than the profits previously reported, investors have to determine relative value.
The fact that pps has significantly reduced since audited financials were produced speaks for itself.
There is value in having audited financials.
But when they show that losses were more than revenues in 2013, rather than the profits previously reported, investors have to determine relative value.
The fact that pps has significantly reduced since audited financials were produced speaks for itself.
Just picking items easy to verify.
And inviting counter arguments based on fact.
Lot of emotion on this board -- for me, I plan based on facts.
But -- BCCI certainly presents trading opportunities based on PR, for those who 'know.'
But from my perspective, the financial fundamentals are not viable as an investment opportunity going forward.
'Scam' is a strong word. But certainly, share buyers beware if they are interested in investing in a sustainable, and growing, business model.