Giggles N'Hugs Inc (fka GIGL)

[Gator328]

Thoth,

I agree. And I don't want to be thought of as a short or a basher. I'm always trying to see my investments from both the good and the bad -- every company has a "weak link" but far too often investors become married to a stock and are unable or unwilling to notice and account for that risk.

IMO, Giggles' weak link is its balance sheet. It needs cash, which means either more debt or more dilution. And that is fine so long as the cash is being used to grow the company and not for management bonuses, corporate meetings in Gstaad, etc.

In time, there will be sufficient revenue from existing locations to fund future growth without needing to bring in outside money. But for now, investors have to accept the short term fact that the stock price will be limited by the increased number of shares required for the company to grow.

Getting back to Jillian and Tia, their presence is helpful but the company can grow just fine without them or any other brand ambassador. Did Chuck E Cheese need celebrities? Dave and Busters? What I like most about this company is that the demand is natural, and not artificially manufactured through endorsements. People would go to Giggles n Hugs regardless of who is tweeting about it or talking about it on the daytime talk shows.

Jillian's involvement is just the beginning. Wait until they get A-list celebrities to come on board.