You are looking to an iHUB board to tell you why NOT to 'invest' in a company?
Seems backwards to me, but if you want some reasons (and I am assuming you are interested in INVESTING, not TRADING -- a subject I confess to know nothing about) ...
- Market value to sales is over 20 -- and that attributes $0 MV to the 7M preferred shares outstanding.
- Quarter over quarter (Q1 13 to Q1 14) sales have DECLINED by 15% -- and that was AFTER Q1 13 sales were restated downward by 16%.
- BCCI lost $1.4M in 2013 -- about equal to sales -- according to the Q1 2014 financials (FWIW, initially published 2013 results had shown a profit of $154K, and even that was less than the sum of the quarterly profits previously published).
- Instability of financial reporting.
Look back -- such a simple number as the number of shares outstanding historically has not been consistent. Compare share counts in the recently issued Q1 2014 Quarterly Report (through 3/31/2014) with 2013 Annual Report (through 12/31/2013) Statements of Shareholder/Stockholders Equity, both involving the same accountant/auditor. History for 2012/2013 differs between the reports.!!!
Inconsistency in such a similarly basic number as revenues as well as profits, is discussed above.
- The number of 'open' units in this fast growing company has gone from 8 to 10 in the last 2.5 years.
On January 22 BCCI announced that the third SW Florida store would open 'early in Q2,' but here we are in the last 15% or so of the quarter with no sign of it.
Hopefully, the company will be successful with its new 'sports bar' format. Negative as I can be as an ex CPA, that concept makes sense to me for the 'themed costume' format though I worry about the fact that two prior operators have not made the location work. Still, revenues should be dramatically higher than in the coffee kiosk business, hopefully profitable as well.
- Lot of PR about ice cream -- indeed, 5M shares were spent on distribution two years ago -- but the most recent Q1 financials did not mention ice cream once.
BTW, if you really want to invest -- I am sure you can get a number of shares direct from the company at a substantial discount by paying the company cash. During Q2 2013, the company sold 4.5M shares for .01/share, $45K in cash. During Q2 2013 BCCI traded publicly between .04 and 08/share, but the company sold it privately for .01/share.
