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The only thing I can say is that in penny stock land, real companies with strong fundamentals don't always beat scam companies with some hype behind them.
I agree it makes no sense.
Thank you for restating the form.
And are no different than the people/groups who get paid to manipulate them.
Take a bow!
PR!
"Bemax Inc. Receives Second Payment for Purchase Order"
http://www.prnewswire.com/news-releases/bemax-inc-receives-second-payment-for-purchase-order-300590961.html
Bemax Inc. Receives Second Payment for Purchase Order
Jan 31, 2018 11:00:00 (ET)
ATLANTA, Jan. 31, 2018 /PRNewswire/ -- Bemax Inc. (OTCBB: BMXC), a growing global distributor of disposable diapers, is pleased to announce today that it has received the second payment toward the purchase order of January 17, 2018.
Bemax receipt of this new payment of $52,000 will make the second tranche of consignment to be shipped to the customer in March, 2018. The new payment further strengthens the company's current revenue level and extend growing customer base with encouraging sales generated so far compared to same period of 2017, and the company is meeting its profit and revenue targets for the current fiscal quarter.
Bemax is introducing its brands of private label products to the Indian market as part of efforts to continue to grow sales and expand customer base through access to new distributors' network.
"This latest development is a testament to the continued success of our marketing strategy. We have received new encouraging interest from customers; we estimate new purchase orders with strong online customer demand in 2018," said Taiwo Aimasiko, CEO of Bemax Inc.
Bemax is completing work to introduce new private label products to respond to new market trends, demands and sustain current distribution base.
About Bemax Inc.
Bemax Inc. exports and distributes Disposable Baby Diapers from the U.S. to emerging markets in Africa and Europe. We also export our private label brands from manufacturers in Asia and distribute to other growing markets. Bemax focuses on an extensive and far-reaching global network among wholesalers, large discounting retailers and supermarkets as well as entry into the ecommerce arena to reach households directly through subscription orders. We focus to supply our clients with disposable baby diapers from manufacturers in North America where quality is superior. Please visit the company website at www.bemaxinc.com.
2nd payment already? Damn, that's quick! 2018 might be a turn around year for $BMXC.
Lawsuit? For what? She relayed a projection that $GIGL told her. Projections are made by businesses daily and projections fall short of their goals daily all around the globe.
There is no legal problem here. A projection is an estimate of what could, might, would be nice to happen. But it's not a guarantee of anything.
No laws were broken.
Take Scott Baio off the potential brand ambassador list:
"Scott Baio On ‘GMA’: Denies Sexual Molestation Allegations, Says ‘Charles In Charge’ Set “Was Like A Picnic Everyday”"
https://www.msn.com/en-us/tv/celebrity/scott-baio-on-%E2%80%98gma%E2%80%99-denies-sexual-molestation-allegations-says-%E2%80%98charles-in-charge%E2%80%99-set-%E2%80%9Cwas-like-a-picnic-everyday%E2%80%9D/ar-BBIvOlt?li=BBnbfcL&ocid=mailsignout
Yes, $300,000 IS way too much given what his job responsibilities are. He oversees TWO small stores. That's just a store manager (regardless of what title he gave himself).
Go to any same sized store in the malls and ask what their store manager gets? If they have one per store, in Glendale they might get $30,000-40,000 if they're lucky. Usually they just promote a long-term sales employee to "manager" so they may get $25,000+.
District managers in large chains like Target, who oversee 8-12 much, much larger stores (that are also profitable) don't get $300,000 and you could fit about 15 $GIGL in each one Target. Target district managers average $150,000 salary (plus bonuses).
https://www.glassdoor.com/Salary/Target-District-Manager-Salaries-E194_D_KO7,23.htm
Plus, Parsi hasn't fulfilled the role of a CEO. What did he accomplish in 2017? Even if $GIGL had 12 stores, Parsi is still getting twice as much as district manager of an established, far more profitable company.
Then add in that this is a penny stock company but he's paying himself like it's an established, profitable company. Most good entrepreneurs don't start taking a salary until they've made the company profitable. Otherwise, like in this case, the entrepreneur makes money but the company doesn't. In the animal world, they call that a parasite.
When the company makes money, then the CEO makes money. If he can't make the company profitable in nine years, he has failed at his job and needs to leave.
Great post! Same old news, same old tactics.
Looks like a $620,000 purchase order with the first payment already received (and the second one on the way) really brings out the fans of $BMXC!
What is it about "payment in hand" that people don't understand? She has the first payment of the purchase order.
"Oil climbs to fresh three-year highs, Brent taps $71 a barrel!"
https://www.marketwatch.com/story/oil-climbs-to-fresh-three-year-highs-brent-taps-71-a-barrel-2018-01-25
"Oil climbs to fresh three-year highs, Brent taps $71 a barrel!"
Published: Jan 25, 2018 4:13 a.m. ET
By
BARBARA KOLLMEYER
MARKETS REPORTER
Oil prices shot to fresh three-year highs on Thursday, with Brent climbing atop $71 a barrel after the market saw another drop in U.S. crude inventory and the dollar continued to sell off.
March West Texas Intermediate crude CLH8, +1.20% rose 67 cents, or 1%, to $66.29 a barrel, knocking out the three-year high the contract saw at Wednesday’s close, when it gained 1.8% to settle at $65.61 a barrel.
Brent for March LCOH8, +0.84% rose 50 cents, or 0.7%, to $71.03 a barrel, the highest since early December 2014. The contract finished at $70.53 a barrel, a gain of 0.8%, on Wednesday, also a Dec. 2014 high.
Continuing a string of declines, the EIA reported Wednesday that U.S. crude supplies fell 1.1 million barrels for the week ended Jan. 19. However, the data also showed total domestic crude production, climbed by 128,000 barrels a day to 9.878 million barrels a day, which some analysts said could hamper crude’s march higher.
A weaker dollar was also contributing to crude gains. The ICE Dollar Index DXY, -0.54% hit a three-year low on Wednesday after U.S. Treasury Secretary Steven Mnuchin said a weaker greenback was good for trade. On Thursday, the dollar index dropped to a fresh three-year low below 89, last trading at 88.906. A weak dollar can make assets like crude look more attractive, because they become cheaper for other currency holders.
February natural-gas futures NGG18, +1.48% pulled back from gains that have seen the contract soar nearly 10% this week. The contract eased 0.6% to $3.49 per million British thermal units after a near 2% climb on Wednesday, when it reached its highest settlement since Dec. 30, 2016.
Natural gas prices have been climbing on weather forecasts that again call for frigid temperatures in parts of the U.S., which could prompt further inventory declines. But some analysts said calls for milder weather next week could keep those prices from climbing too high.
Okay, you've identified what many would agree is the problem, lack of execution by the CEO.
What do you do? Specifically. What is your exact plan? (Just "get rid of the CEO" isn't a plan, it's a sound bite).
Details?
"Bemax Inc. Announces Receipt of First Payment for Purchase Order"
Jan 24, 2018 11:00:00 (ET)
ATLANTA, Jan. 24, 2018 /PRNewswire/ -- Bemax Inc. (OTCBB: BMXC), a growing global distributor of disposable diapers, is pleased to announce that it has received the first payment toward the $620,000 purchase order, effective as of January 17, 2018.
The receipt of $50,100 three days earlier than scheduled constitute payment for the first tranche of consignment to be shipped to the customer and further set the company on track to meet its estimated revenue target for the current fiscal quarter. Bemax will receive payment for each tranche of consignment before shipment to the customer.
"We are extremely pleased with this development and the continued interest for our private label product of disposable diapers as the company's overall operations, competitive posture and solid foundation for profitable growth are all stronger than ever before," stated Taiwo Aimasiko, CEO of Bemax.
About Bemax Inc.
Bemax Inc. exports and distributes Disposable Baby Diapers from the U.S. to emerging markets in Africa and Europe. We also export our private label brands from manufacturers in Asia and distribute to other growing markets. Bemax focuses on an extensive and far-reaching global network among wholesalers, large discounting retailers and supermarkets as well as entry into the ecommerce arena to reach households directly through subscription orders. We focus to supply our clients with disposable baby diapers from manufacturers in North America where quality is superior. Please visit the company website at www.bemaxinc.com.
Safe Harbor Statement
This press release contains forward-looking statements that can be identified by terminology such as "believes," "expects," "potential," "plans," "suggests," "may," "should," "could," "intends," or similar expressions. Many forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results or implied by such statements. These factors include, but are not limited to, our ability to continue to enhance our products and systems to address industry changes, our ability to expand our customer base and retain existing customers, our ability to effectively compete in our market segment, the lack of public information on our company, our ability to raise sufficient capital to fund our business, operations, our ability to continue as a going concern, and a limited public market for our common stock, among other risks. Many factors are difficult to predict accurately and are generally beyond the company's control. Forward-looking statements speak only as to the date they are made and we do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
View original content:http://www.prnewswire.com/news-releases/bemax-inc-announces-receipt-of-first-payment-for-purchase-order-300587294.html
SOURCE Bemax Inc.
/CONTACT: Bemax Inc.: 1100-200 Peachtree Street, NE, Atlanta, GA 30309, Tel: 404-991-3518, Twitter: @Bemax_Inc
/Web site: http://www.bemaxinc.com
(END) Dow Jones Newswires
January 24, 2018 11:00 ET (16:00 GMT)
Nice pic for sure. Not so sure it was a professional photographer though. It's a good pic either way, so it doesn't really matter who took it.
Of course if he signed her on in any capacity with $GIGL he would 8-K it (plus a PR). I'm thinking since it was a birthday party, that's all it is, was her kid's birthday...not a business deal in the making. That would be quite the coincidence. Nice, but unlikely. I think we would have heard about it already.
The bottom line is it's a pic that shows the name of $GIGL in it and her shout out with millions of followers so we'll take it!
Nice post! SO true!
Great future for this company! The industry is improving. The company is structured well. They are expanding their business.
Good things to come!
1) Jillian to the rescue? No, not happening. We've gone over that numerous times. She builds and invests in HER brand, not in others (especially those that are in the red). She can afford to start her own restaurant from scratch without any debt or baggage.
2) Wealthy investor? $GIGL has turned them down. So, that's out.
3) Parsi stepping down? Never going to happen. He's a founder who's lost in his own ego. When you hear a founder talk about "his baby" when describing the business, you know they're not thinking logically from a business standpoint. There is too much irrational emotional attachment to the business. It really is almost like ripping a baby out of the parents arms.
I won't go over the Hollywood element again. I've beaten that dead horse numerous times.
You're having a difficult time understanding this because you're looking at it from a shareholder's standpoint.
Don't try to understand a Hollywood obsessed CEO from the mindset of a shareholder from outside of Hollywood.
Sorry, that's the best way I can reflect on this topic. Not trying to be a jerk, just a dose of reality.
I agree that given no expansion, he brought those two on too early. I get the "putting together a team" approach but I don't see how he planned to pay for expansion of these reported 6-12 stores that he would need a team for.
Which leads me to believe he didn't have a plan and that's the problem. He ran before he could crawl or walk.
His obsession with 6-12 stores will sink this company. It's unrealistic and he's passing up offers to open one store and grow the company one location at a time while improving the bottom line.
That's how McDonald's did it in the beginning. One store at a time.
Parsi's swinging for a home every time at bat when bases are loaded and a single would be enough, but he's striking out instead.
I don't think he has the capacity to understand all this. I think he's believing his own press too much.
It would be a great idea if the company was profitable. You cannot franchise (realistically) a company that is in the red.
I'm sure there are examples of people who have tried it, but overall, it's not a great selling angle to say "Hey, I know we founded the concept and can't make money at it, but give us your money, and we're sure you can pull it off."
The 6-12 store expansion plan is not realistic either. They have to do one new store, increase the square footage to 3,500-5,000 feet (from 2,500) which will get them closer to profitability.
If their Yelp reviews are to be believed, they are often overcrowded, which means the current stores are too small (and/or inefficient layout design).
Then, after that gets running, review the design/size of the larger store, adjust, and plan store #4.
And so on. Money will come if they are profitable. Trust me on this.
2018 projections are better in this industry than 2017. This stock should be much higher than it is.
If $PGAS were a big board stock, it would be much higher. But this is a penny stock where companies with zero fundamentals that are the flavor of the week get pumped up significantly but solid companies like $PGAS float around in obscurity which is unfair but true.
I agreed 100% and laid out in a prior post why I think one new store is a much better strategy than 6-12 at this time.
ShortsFail Member Level Thursday, 01/11/18 10:46:01 AM
Re: Honeycomb777 post# 32125
Post #
32129 of 32164 Go
Let's shoot for enough money raised to open one new location. I think given the track record that would be a realistic goal for the following reasons:
1) Often people think so big, that anything short of that doesn't get done. Sort of like swinging for a home run every time at bat when a single would do and constantly striking out instead.
2) Since no stores were built in 2017, any progress would be a great sign that the company can expand. It would boost investor/shareholder sentiment tremendously.
3) It would more than likely open the gates of investor money more than the current status of the company.
4) It should, done correctly, improve economy of scale for the bottom line of operations. Therefore, it'd get the company closer to profitability. And again, improve #3 above.
5) Expanding one more store makes it that much easier to open store #4, and so on. It builds momentum for all involved.
6) The less new shares they issue now, the less dilution to shareholders. I'd rather they raise debt funding for future stores and getting another store opened now might get them one step closer to that avenue of funding.
I'm sure there are other aspects I didn't mention, but this is a start. Feel free to add to this list.
Again, as a shareholder, right now I would be very happy if they announced opening just one store. Right now a single would be just as big as a home run.
The answer to your question is two part.
One, you have to understand the L.A./entertainment world mentality. Although this business has nothing to do with La La Land, try telling that to Parsi. People who like it there thrive in the wannabe land of make believe. It's a false reality where in any direction you are no more than 25 feet away from someone who wants to be a star. Parsi is obsessed with the celebrities. He wants in that world so bad he can taste it. But he has no talent to get him there so leaching off of the celebrities who come to GIGL is all he's got.
He reminds me of many of the scummy wannabe producer/directors I met at various events around town. They were so obvious.
Two, what else has he got right now? From the sound of his resume, he can't go back to the "finance" world he was forced to leave from. Now, he just has to keep the "GIGL hope balloon" in the air from fluff PR to fluff PR to keep his obscene salary coming in and keep people hanging on the "but it's a great concept" dream.
If he could make the stock price go up, he would.
But he can't.
If he cared about the company, he would get an experienced CEO to turn the company around. He cares about his salary. All I will say is read the offering very carefully. You'll figure it out.
Let's shoot for enough money raised to open one new location. I think given the track record that would be a realistic goal for the following reasons:
1) Often people think so big, that anything short of that doesn't get done. Sort of like swinging for a home run every time at bat when a single would do and constantly striking out instead.
2) Since no stores were built in 2017, any progress would be a great sign that the company can expand. It would boost investor/shareholder sentiment tremendously.
3) It would more than likely open the gates of investor money more than the current status of the company.
4) It should, done correctly, improve economy of scale for the bottom line of operations. Therefore, it'd get the company closer to profitability. And again, improve #3 above.
5) Expanding one more store makes it that much easier to open store #4, and so on. It builds momentum for all involved.
6) The less new shares they issue now, the less dilution to shareholders. I'd rather they raise debt funding for future stores and getting another store opened now might get them one step closer to that avenue of funding.
I'm sure there are other aspects I didn't mention, but this is a start. Feel free to add to this list.
Again, as a shareholder, right now I would be very happy if they announced opening just one store. Right now a single would be just as big as a home run.
Good point. The fundamentals certainly support it!
I agree that Parsi cannot be trusted to spend the money on expansion at the sake of his own salary but no one is going to invest $5.84 million for two unprofitable stores, only get partial ownership, and take on their debt. That is NOT happening. It doesn't matter how much stock they get, it's just not worth it.
With $5.84 million, they could:
1) They could go buy two or three McDonald's franchises, own them 100%, and be debt free. ("Most McDonald's owner/operators have entered the corporation by purchasing an existing restaurant. To open a McDonald's franchise, however, requires a total investment of $1-$2.2 million, with liquid capital available of $750,000. The franchise fee is $45,000")
2) Start up their own healthy food playscape from scratch for about half that AND have zero debt. This business is easily copied. Face painting and sing alongs aren't rocket science. Again, they'd own 100% and be debt free.
3) They could partner with or buy a franchise from an existing playscape company and add a healthy food menu. Again, they'd own 100% and be debt free.
4) Buy two Chuck E. Cheese franchises (with money to spare) and add a healthy main course to their menu (they already have healthy salads and other healthy food options now). ("Chuck E. Cheese's Franchise Cost / Initial Investment / Income. The total investment to open and operate a Chuck E. Cheese's franchise location ranges from $1.17 million to $1.83 million, with liquid assets available of at least $800,000 per unit.") Again, they'd own 100% and be debt free.
All of the options above make 1000% more financial sense than giving GIGL $5.84 million. So, let's scrap that idea. Posting the same scheme on a daily basis doesn't mean it will magically happen.
There some options on a smaller scale though. From the offering they may get, at best, enough for one location. If they can pull that off and continue to improve operations, they just might get through this.
Have those two stopped Parsi from doing the stupid things he's done so far? Doesn't look like it.
I don't think those two are all that involved at this point. When was the last time you heard anything about them in relation to $GIGL?
They're ghosts.
Oil hits highest since May 2015 above $68 on tighter market
https://www.cnbc.com/2018/01/08/us-oil-prices-hit-highest-since-2015-but-doubts-loom-over-rally.html
-Brent reaches $68.29, highest since May 2015
-OPEC-led output cuts, dip in U.S. rig count support prices
-U.S. crude inventories expected to fall for 8th week
-Iran says OPEC 'not keen' on oil price rise
Published 10 Hours Ago Updated 30 Mins Ago
Reuters
Oil rose further above $68 a barrel briefly on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week.
The Organization of the Petroleum Exporting Countries and allies including Russia are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories.
Brent crude, the international benchmark, was up 9 cents at $67.87 a barrel at 1111 GMT and earlier touched $68.29, its highest since May 2015. U.S. crude rose 18 cents to $61.91 and also reached its highest since May 2015.
"Oil prices remain on an upward trajectory," said Carsten Fritsch, analyst at Commerzbank.
"In view of sharply falling U.S. crude oil stocks and record-high compliance with the production cuts by OPEC, market participants are convinced that the market is continuing to tighten."
OPEC is cutting output by even more than it promised and the restraint is reducing oil stocks globally, a trend most visible in the United States, the world's largest and most transparent oil market.
Supply reports this week from industry group American Petroleum Institute and the U.S. government's Energy Information Administration are expected to show U.S. crude stocks fell by 4.1 million barrels, an eighth week of decline.
The API releases its data at 2130 GMT on Tuesday and the government report is out on Wednesday.
Many producers, still suffering from a 2014 price collapse, are enjoying the rally, although they are wary it will spur rival supply sources. Iran said on Tuesday OPEC members were not keen on increased prices.
Unrest in Iran, OPEC's third-largest producer, has lent support to prices this year although output and exports have not been affected. Economic collapse is leading to involuntary production cuts in Venezuela, another OPEC member.
There is no sign yet that OPEC is prepared to relax its supply restraint.
A senior OPEC source from a major Middle Eastern oil producer said on Monday OPEC would boost output only if there were significant and sustained production disruptions from Iran and Venezuela.
The rise in prices is expected to drive gains in U.S. production during 2018, offsetting curbs by others.
Still, the latest U.S. rig count, an early indicator of future output, showed a slight dip in the amount of rigs drilling for new oil, which lent support to prices.
They don't have financing now so there's no way they'll meet your goal of three units by March.
Plus, even if they had financing last quarter, the pre-construction phase alone (permits, design/blueprints, contracting the job out etc.) would have to have started months ago and they would have to file an 8-K and of course, the PRs that would accompany such an event.
So, what do you do now?
Imagine? If? Still more ridiculous scenarios that rely on imagination and numerous "if" series of outlandish events happening that have higher odds than a lottery.
A new CEO PAYING into GIGL to save it? Did you pay to get your last job?
A real turn around CEO isn't going to pay to get the GIGL CEO spot. It works the other way around. You have to pay for that talent to entice someone who is capable of making this a profitable company.
Here's your job pitch "How we see it is, GIGL isn't profitable, but since you have the experience at turning around companies, as a bonus to offering you the CEO job, we're going to give you the opportunity of paying GIGL for your position too! Isn't that an awesome offer?"
Wait, isn't that how Parsi's share offering sounded? Yes, equally ridiculous.
Hooters using cryptos! That's where Parsi got the idea from!
I thought I would post this to see who's head explodes first!
(The company’s stock price jumped by 50% on Tuesday after it announced plans to use Mobivitymind, a “blockchain-architected platform” to create a cryptocurrency customer loyalty and rewards program.)
https://news.bitcoin.com/hooters-investor-joins-the-crypto-hype-eating-a-burger-is-now-a-way-to-mine/?utm_source=news.bitcoin.com&utm_medium=widget&utm_campaign=News%20Widget
Hooters Investor Joins the Crypto Hype: “Eating a Burger Is Now a Way to Mine!”
Bitcoin.com Games
Companies routinely roll out new loyalty programs with much fanfare but arouse little to no excitement from investors, at least until they can show some returns. Now one Hooters franchisee has shown how to change this: just use these magic words: bitcoin, crypto and blockchain.
Hooters Coin?
Hooters Investor Joins the Crypto Hype, "Eating a Burger Is Now a Way to Mine!"Chanticleer Holdings Inc. (NASDAQ:BURG) is the owner of several fast food restaurant brands including nine Hooters joints as well as a minority investor in Hooters of America. The company’s stock price jumped by 50% on Tuesday after it announced plans to use Mobivitymind, a “blockchain-architected platform” to create a cryptocurrency customer loyalty and rewards program.
“We wanted to expand our existing loyalty program with something that really changes the way our customers can leverage their rewards; Mobivity Merit is real cryptocurrency, leveraging the same infrastructure and principles of bitcoin, ethereum, ripple, litecoin, and more, and will enable our customers to make use of their rewards in entirely new ways,” said Michael D. Pruitt, Chairman, President and CEO of Chanticleer Holdings.
Tasty Mining
Hooters Investor Joins the Crypto Hype, "Eating a Burger Is Now a Way to Mine!"
Bitcoin Veggie Burger (apparently it’s a thing)
Mobivity and Chanticleer only plan to begin the deployment of this new program beginning in about six months. They expect it to be deployed across all their brands by the end of the year. It will simply allow a customer to use the loyalty points they “mined” by eating a burger at one brand to get a buffalo chicken sandwich at another, or “trade them with a vegan friend so he can get a veggie burger.”
One would expect that stock investors would wise up by now and demand to see more than promises of groundbreaking technology. However, as we seen time and time before, companies turn up the blockchain hype to eleven because it delivers, for them. Unless market regulators will put a stop to this, the trend has no end in sight.
“Eating a burger is now a way to mine for cryptocoins! Every meal enjoyed at any Chanticleer Holdings brand will accrue currency for the consumer that can be used for future meals or traded with other consumers. It transforms traditional consumer rewards into something that the consumer can control,” said Dennis Becker, CEO of Mobivity.
Why are stock investors flocking to fake “bitcoin” companies instead of going for the real deal? Tell us what you think in the comments section below.
Images courtesy of Shutterstock.
Has anyone emailed Philip Gay? He's supposed to be in charge of business development right?
Great for $PGAS! Iranian Crisis Could Send Oil To $100
https://oilprice.com/Geopolitics/International/Iranian-Crisis-Could-Send-Oil-To-100.html
Oil prices started the year on a high note as some geopolitical tension pushed aside bearish concerns. Both WTI and Brent opened above $60 per barrel for the first time in years.
The protests in Iran were the main driver of the bullish sentiment in the oil market. Anti-government demonstrations swept across the country in recent days, and unlike the widespread protests in 2009, the current rallies are related to economic woes and are also taking place in more cities than just Tehran. “Growing unrest in Iran set the table for a bullish start to 2018,” the Schork Report said in a note to clients on January 2.
At least 14 people have been killed in the protests and an estimated 450 have been arrested. It is the most serious challenge to the Iranian government in years, and Iran’s Supreme Leader put the blame on foreign agents, presumably the United States. “In recent days, enemies of Iran used different tools including cash, weapons, politics and intelligence apparatus to create troubles for the Islamic Republic,” Ayatollah Ali Khamenei said.
Meanwhile, tension over North Korea – although not a new development – could be spreading to include a spat between the U.S. and Russia as well as the U.S. and China. Reuters reported late last week that Russian oil tankers have sent fuel to North Korea on multiple occasions in the last few months by transferring cargoes at sea. If true, the actions would amount to a violation of UN sanctions. Sources told Reuters that there is no evidence that the Russian state was involved, but the news has raised the specter of U.S.-Russian tension as Washington seeks a hard line on Pyongyang.
Related: Oil Sees Strongest Start Of Year Since 2014
The spat over oil shipments to North Korea is also centered on China. South Korea seized two ships that were allegedly carrying oil to North Korea. The U.S. has been trying to get the UN Security Council to blacklist a number of ships suspected of sending oil to North Korea, but China has resisted such efforts. The incident has raised suspicion in Washington that China is circumventing UN sanctions and providing a lifeline to North Korea.
The two geopolitical flashpoints seemed to outweigh bearish concerns over the return of the 450,000-bpd Forties pipeline to operation. The key North Sea conduit came online in recent days, restoring disrupted North Sea oil to the market. Libya also repaired an oil pipeline that funnels crude to its Es Sider export terminal, easing concerns about disrupted supply. The expected return of supply from both countries has been cited by analysts as reasons to expect a selloff in crude prices at the start of the year, but so far, the tensions in Iran and North Korea have carried the day.
With that said, the odds of a tangible disruption from these geopolitical events is minimal. “I don’t think we’re seeing much immediate risk from these [Iran] protests which are taking place in urban areas but I think it’s the backdrop—both political and in the oil market—that mean these are catching attention,” said Richard Mallinson, analyst at consultancy Energy Aspects, according to the WSJ. “Geopolitics is going to be much more in focus now that we’re in a tighter market.”
Related: U.S. Shale Can’t Offset Record-Low Oil Discoveries
But Iran’s oil fields are located far away from any serious impact from the demonstrations. “As of yet there is no deep seated concern for a disruption of Iran’s 3.8 mb/d crude oil production,” Bjarne Schieldrop, chief commodities analyst at SEB, said in a statement. “However, if it was to happen it would have a huge impact on the global crude oil prices. A full disruption of such a magnitude would immediately drive the Brent crude oil price above the $100/bl mark.”
As concerns of a supply disruption from Iran start to wane, as seems likely, the focus will shift back to the fundamentals. The IEA, among others, predict a return to inventory builds in the first and possibly second quarter of this year. Also, investors have racked up an extremely lopsided bet on crude futures, and such levels of bullishness tend to precede a selloff. That means that as these geopolitical events lose salience, the short run risk for oil prices is very much on the downside.
“Not having at least one solid correction to the downside in 2018 with such a mega bullish allocation to start with would probably be the biggest surprise of all this year,” Schieldrop added.
By Nick Cunningham of Oilprice.com
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SQUEEZEEEEEEEEE!!!!! The pain is starting to show!
I agree. I think it will fly by $0.10 on its way to $01.15-0.25 or more... easy. So many OTC stocks have gone much, much higher with far less going for them than $PGAS.
$PGAS has solid fundamentals and a CEO who is methodically building this company for long-term sustainable growth.
There really aren't any shortcuts in the oil and gas industry so it's nice to see the company make very intelligent moves.
Yeah, 2018 might just have a nice surprise.
SAME BAT TIME...SAME BAT STATION
Putting the pieces of the puzzle together! Looking great!
Great post!
What mall locations do you think the next $GIGL should expand to and why? To keep us busy during the current lull, how about a fun exercise?
Let's have a serious discussion about where the next $GIGL location should be and list reasons why, such as:
1) Demographics of the customers at that mall?
2) Age, condition, and store mix? (Anchor and/or complimentary feeder stores).
3) Freeway access?
4) Parking?
5) Nearby competition?
6) Who is the property manager of the mall?
And anything else you can think of. I think the L.A. area would be the best place to start but other parts of the country would be good too.
Man I hope not! They could use that money to open a location or two. Introducing a new food line will take millions to develop, manufacture, pay shelf space slotting fees, and marketing to build awareness of this unknown entity $GIGL.
They can't do a branded product line because they have no developed brand, and they're not a co-packer to be hired to manufacture other brands so I don't know what they would come out with?
We've gone over this topic before and people seem to feel doing anything, even if it's a wrong move, is better than nothing.
I can't find any private equity or start up specialists to agree with coming out with an unknown product line when they don't have enough money to expand past two stores. It would be a stupid move business wise.
Parsi needs to focus on one thing and one thing only...opening one new location.
Not frozen food, t-shirts, stuffed animals, or anything else. It's his lack of focus that led to a horrible 2017 and sent this company backwards.
I recommend for people not experienced in this topic to watch the movie "The Founder." Tell us at what point in McDonald's early expansion to 100s of locations did they start giving out/selling toys?
I'll save you the trouble. They DIDN'T. They didn't start auxiliary marketing until 24 years after they first opened. They focused on store development, with an emphasis on improving operations.
Smart moves!
When was the first McDonald's opened?
Kroc's first McDonald's restaurant opened on April 15, 1955, at 400 North Lee Street in Des Plaines, Illinois, near Chicago.
When did Mcdonalds start giving toys?
In 1979 McDonald's rolled out the U.S.'s first Happy Meal. It was circus-wagon-themed and came with the standard hamburger or cheeseburger option, as well as French fries, cookies, a soft drink and — of course — a toy.
This is what a real buy out looks like. Since there is so much discussion about how buying the two $GIGL locations would somehow be so profitable, I thought a little prior data would be nice.
There are many, many more examples of what private equity (and other entities) look for when they buy restaurant CHAINS (and that means considerably more than two units).
Growth and profits.
I thought it would be fun to compare $GIGL to these companies. I boldfaced a few facts you will particularly enjoy.
Merry Xmas!
"Checkers sold for $525M to new private-equity buyer"
"Private-equity group Oak Hill Capital partners with company management on buyout"
By Jonathan Maze
Oak Hill Capital Partners has agreed to buy Checkers Drive-In Restaurants Inc., from Sentinel Capital Partners in a deal valued at $525 million, the companies said on Thursday.
Oak Hill, the New York-based private-equity group, is partnering with Checkers management on the deal.
“Checkers is a unique concept that is outpacing the growing QSR industry,” Kevin Mailender, partner at Oak Hill, said in a statement. “The company has been able to win share in this large, stable industry through its differentiated value proposition and attractive franchised business model. With a proven brand, a loyal customer following and strong unit-level economics, we are confident that the business will capitalize on its large white space opportunity for new units.”
Checkers operates Checkers and Rally’s brands, which are typically operated as one concept. The Tampa-based company has 840 locations in 29 states under the two brands.
That is up by 68 locations since 2014, when Sentinel acquired the company. Checkers was founded in 1986.
“We are delivering record growth at Checkers and Rally’s, and our franchisees, operators and employees are more excited than ever about our future,” Rick Silva, CEO of Checkers, said in a statement. “Oak Hill Capital Partners is a perfect partner to help us further accelerate our growth.”
The transaction is expected to close in the second quarter of this year.
The deal for Checkers continues a brisk pace for mergers and acquisitions in the restaurant space so far in 2017, following earlier deals for Bob Evans Restaurants and Popeyes Louisiana Kitchen Inc. Other chains, including Ruby Tuesday Inc. and perhaps Bravo Brio Restaurant Group Inc., are looking at potential sales of their companies.
Contact Jonathan Maze at jonathan.maze@penton.com