I have eaten there many times. What makes this an interesting and potentially profitable stock are the new Pie Five stores. They are different from the traditional pizza restaurants. The food is different, the atmosphere is different. They are designed for a more upscale clientele. In a year they have opened seven Pie Five stores. I hear people talking about them. In fact that is how I decided to look at buying stock in Pizza Inn.
When I started doing my research on Pie Five and realized it was Pizza Inn, I was surprised. I wished it were not... I would rather it had been a new business because there are a lot of the Pizza Inn stores to deal with. Roughly three hundred if I remember correctly.
So here is my dilemma. What is critical mass...What is the number of stores that makes Pie Five drive the financials? I have no idea. l find it compelling the stock price went up so fast in December? The stock jumped to $7.07 before falling back down. That is a big jump, The last time it was close to that level was in 1998! I have to think Pie Five had something to do with it. I could be wrong... I don’t know... But what else could it have been.... So here is what I see now that stirs my interest. We saw a fifty-two week high of $7.07 in December. Actually a two decade high! Then when the numbers came in in February, they disappointed. Wow, what a shocker, a couple of new stores and a large population of old stores.
Pizza Inn reports again in September. The insiders are buying. What do they see that makes them so eager to load up now? I suspect they like the numbers they are seeing. The other possibility is they are playing a game. Anything is possible. But I am waiting for September to find out.
