No argument from me about Baristas being a real business.
There are kiosks which sell coffee. That is a fact, not debatable.
But, I would strongly argue about whether it is a business which will bring a positive return to people who buy its stock:
- Multiple store openings are announced, but do not happen (Arizona, New Jersey, etc.)
- Officers are paid no salary, thus understating expenses;
- Investments are made in ancillary areas which do not pay off (ice cream, reality show, proposed Tully's purchase).
- Stock is issued to pay for services, but the value of the stock is not appropriately recorded in the expenses of the company (now on balance sheet at a level of $7M for 'unidentified and intangible assets,' they will end up as expense should an audit ever happen).
- Promises are made about uplisting, audited financials, etc., but nothing happens.
- Grandiose growth forecasts are presented to paid research services (100 store openings in 2012), but they don't come true (less than ten -- in fact, less than ten in 2012 AND 2013 combined.
So yes, there is a business. But marginal business. In its own financials, BCCI says: "The revenue from current operations is minimal."
Will it make money? In my opinion, no -- note that 75% of restaurants fail. Were they a business, yes, but doesn't mean they were successful.
For those who prophesize financial success for this business, I would be interesting in reading about the financial metrics which drive to that conclusion. I just haven't seen them. But I have seen 50% dilution in the last couple of years, and the stock is near a multi-year low (with the overall market at an all-time high) with continuing 'going concern' comments even in the unaudited financials.
Most recent quarter, 3% quarter on quarter growth despite ice cream reported to be in hundreds of stores during the peak summer season for the first time.
