Sack Lunch Productions Inc (SAKL)

[Blizzld]

The company is doing a great job with marketing , promotion and performing. However, keep in mind Ticket Sales do not equal top line revenue. As pointed out in the press release some of that is franchisee ticket sales. This is why it would be nice to see the franchise documents to see what the company makes on that approx 1/3 of its business.

The preferred stock is not an issue just because of 6 million shares, but the fact that another 6 million 10 million or 20 million can pop out at any time. In other words the one time thing is not bad, just knowing they can be released at any time (the C shares) makes me a bit reluctant to pull the trigger on this one.

With franchised events, the company earns some up front franchise fee and a royalty or percentage of sales or something. They do not report Gross revenues from those ticket sales , just the corporate ones.