Gourmet Provisions Intl Corp (GMPR)

[mikeer69]

Well, time for a lesson in business valuation. Who here would raise $21M to leverage buyout UPZS at $.04/share? They have less than 10 stores operating, cash unknown, and limited assets. The market looks forward though, and the company says they will open 100+ stores. At that rate (100+ stores), the current price seems very CHEAP. BUT, if they don't execute than it is probably fair to overvalued IMO. The name/brand alone isn't worth $40M, what is?? It's the plan and execution of it, and the faith in the mgmt (faith is waning).

Just think that's at $.04/share, and we trade at $.08. That's what adding large amounts of shares does to a 'stock' value. The 'company' value is all the matters, quit looking so hard at the stock price. The valuation metric that should be used is market cap, which today is north of $40M.

I sense a lot of folks that haven't studies securities in the past on this board. Be prepared for a long drag on the stock price until mgmt shapes up and...

1) applies to be uplisted
2) shows 'good' results towards hitting the goals THEY posted (100+ stores AND $84M / year in Revenue)
3) shows that they are Cash Flow positive and won't need to raise more money - in essense running a business that deserves a lofty valuation

Remember folks, I said it a looooong time ago. UPZS's business model is sound. It hasn't been executed well, but it is cookie-cutter for the most part. IF they ever figure out which end is up, this thing can scale very quickly, so there is a lot of leverage. Realize leverage works both ways, and that not only is UPZS competing with the large franchises, but there are also other newcomers vying for position.

Good luck

IMO