Today, just after the market closed, SPKL announced that franchisees have signed leases for five new locations. One in Brooklyn, NY, one in Ocala, FL, and one in Norman, OK. San Diego is getting a second store, and Austin is getting its third.
As you can see by the chart to the right, the stock continues to bump along the bottom of this extended triangle pattern. We could possibly see the stock break the bottom part of this triangle in the next few weeks.
Why do I say this?
Well, as everyone knows, this past December the company completed a $6 million financing. That stock has now become free trading stock, to the tune of about 7 million shares. The cost basis for these shares is $.85. This creates a potential supply problem in the very short-term. If these shares hit the market, this obviously creates a very attractive opportunity for all current shareholders.
We might see the stock trade lower into the $1.00 to $1.10 region. If this does happen, I can't see it trading lower than $1, because the investors who participated in the $6 million financing are not looking to just make $.15 on their investment.
They know the upside for this company and are looking to make a ton of money on this deal. You do not make a ton of money by buying a stock at $.85 and then getting out at $1.00. They want to see the stock go to $2 or $3 and then look for a possible buyout.
It's worth noting that two of the company's independent board members participated in this financing to the tune of $1.3 million. That is how much the insiders believe in this company.
By the end of 2008, we could possible see Spicy Pickle opening 3 to 4 new stores per month. With this type of growth, who wants to be a seller?
Just a little FYI - my 300,000 share stock certificate is sitting in my filing cabinet and most likely will not be touched for another year.
This company is for real and if you are just finding out about it, just take a look at all of their previous press releases to see how fast this company is growing.
Lightning cracks the blackened sky,
Hear the thunder chariot ride
All brave men with hearts of war
Ride the path of mighty Thor
AI
