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I posted a BLOG on this morning's
news release from China Energy Recovery (OTC BB: CGYV), which included
some comments about the current price performance. Today's subject matters
reveals CGYV can deal with the black sludge in the rivers in China,
emanating from factory pollution. It comes primarily from paper mills who
ooze this stuff called "Black Liquor".
As it turns out, CGYV has
technology that eliminates Black Liquor by vaporizing it in a massive boiler
and using the steam to regenerate power, and they just completed an installation.
Read the BLOG for more information, and check the news. The
stock continues to trade poorly, so I'm suggesting staying away unless
you have at least a six month time horizon, in which case it is a great
buy.
The BLOG is your opportunity
to ask questions and offer comments. I will make an effort to answer every
legitimate question. If I don't know the answer, I will contact the management
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or oversold levels in volatile markets.
 |
Pickle Flies Into Vancouver
Airport |
|
Spicy Pickle was out with
news today about mid morning which should help investors get an understanding
for why the Western Canada acquisition of Bread Garden Urban Cafes puts
a little life back into the business expansion outlook when all other restaurant
chains are frozen.
Today, SPKL announced it has
signed a lease for its first airport location. Bread Garden will
have a franchise operation in the Vancouver airport. The Vancouver airport
is going through a major renovation as it is gearing up for the 2010 Winter
Olympics.
According to the release, 18 million
travelers will pass through the Vancouver airport in 2008, and the number
is expected to expand to 20 million by 2010.
The new Bread Garden will
be about 500 sq ft, and located in a food court for public seating. Like
other Bread Gardens, the faire will be displayed in a glass counter-
European style.
These airport locations are highly
sought after as they do both enormous revenues and get the brand in front
of millions of customers.
This news is important on several
fronts. First, it should help shareholders get a clear understanding of
why the Bread Garden acquisition is so important to Spicy Pickle.
First and foremost, it provides expansion capability in an environment
where the US market has clearly on the sidelines with the pending Presidential
election and the banking system in the government's "intensive care" ward.
The patient is slowly coming off death watch, but far from ready to check
out of the hospital.
SPKL is not out of the woods
financially. Cash levels are going to run low early next year unless some
steps are taken to raise a little more equity. Approximately $11 million
has been raised for the company to date, and another $1 million to $1.5
million should put them over the top to cash flow positive.
However, the company has done a great
job figuring out a way to expand in the back half of 2008 with every other
restaurant chain on the sidelines. The Bread Garden acquisition added 11
new stores to the franchise network without the company shelling out one
dime in cash.
I expect to read about further expansion
in Western Canada where there is no banking crises and nothing worse than
a bit of a slow down. Once we get past the banking crises in the US, and
the environment returns to some semblance of normalcy, I expect further
expansion stateside.
Currently, the entire system is running
at about $25 to $30 million in annual revenues. The path to cash flow positive
is in sight. A little faith is in order here.
New capital is not suggested for
investors with less than a six month time horizon. It's the investing nuclear
winter, and we're in a deep freeze. However, when the spring does come,
this one will should start to behave a lot better. The stock is up a little
today on light volume.
Here is the complete text of today's
news for your review:
| Press Release Source:
Spicy Pickle Franchising, Inc.
Spicy Pickle's Bread
Garden Urban Cafes Is Awarded Vancouver Airport Location
Tuesday October 14, 1:00
pm ET
DENVER, CO--(MARKET WIRE)--Oct
14, 2008 -- Spicy Pickle Franchising, Inc. (OTC BB:SPKL.OB - News) fast
casual restaurants announced today that its Bread Garden Urban Cafes, a
chain of 11 franchised fast casual restaurants located in the greater Vancouver,
Canada area, has signed a lease for a location at the Vancouver Airport.
The location is in Terminal
C which is currently under construction and scheduled for completion in
early 2009. The construction is part of a major redevelopment of the airport
prior to the Winter Olympics which will be held in Vancouver, Canada in
the winter of 2010. The stand alone location will be post security and
in a food court area located in the center of the newly constructed concourse
with high visibility. It is approximately 500 sq. ft. and shaped like a
quarter circle. The space will be used entirely as a kitchen and front
counter. Seating will be in the common area directly in front of and behind
the unit. The new Terminal C services domestic traffic and Canadian international
connections. It will be serviced primarily by Canada Air, the largest Canadian
carrier. Build out will occur during the spring of 2009 to coincide with
a slated opening of the new concourse in June or July of 2009. Lease payments
will commence on September 1, 2009. This lease has a term of five years
with a two-year option.
Marc Geman, CEO of Spicy
Pickle Franchising, Inc., commented: "We have been working on sites in
the Vancouver area even as we were negotiating the purchase of the Bread
Garden chain. This was an opportunity that came up several months ago and
we sent our project management team to Vancouver for the initial meetings
with the airport. Due to the hard work on the part of the Bread Garden
team that is now part of our team, we submitted a proposal that has resulted
in this location being granted to Bread Garden Urban Cafes."
Mr. Geman further stated:
"The Vancouver airport is an extremely high visibility location. The Airport
had a 17.5 million passenger count in 2007 and has a projected 2008 count
over 18 million. By the time of the Olympics in 2010 roll around they project
over 20 million passengers. Of that more than 10 million passengers are
in the domestic area where the Bread Garden Urban Café will be located.
This is the type of alternative venue that can bring brand identification
quickly to other major metropolitan areas in Canada and overseas."
Zip Dhanani, the former
owner of Bread Garden Urban Cafes and consultant to Spicy Pickle, said,
"The Vancouver Airport marks a new threshold for Bread Garden and promises
to be a very busy location. We are also very pleased that one of the current
franchisees who already owns two other high profile locations has been
selected as the franchisee for this new location."
About Spicy Pickle(TM):
Founded in 1999, Spicy
Pickle Franchising, Inc. (OTC BB:SPKL.OB - News) serves high-quality meats
and fine artisan breads, baked fresh daily, along with a wide choice of
eight different cheeses, twenty-two different toppings, and fourteen proprietary
spreads to create healthy and delicious panini and sub sandwiches with
flavors from around the world. As a leading "fast-casual" concept, Spicy
Pickle offers menu items that are far beyond traditional fast food but
without the price point of casual dining. The hallmark of a Spicy Pickle®
restaurant is quality, service and an enjoyable atmosphere. The company
is headquartered in Denver, Colorado, with restaurants open or under construction
across 15 states and several more in development nationwide. Spicy Pickle
Franchising, Inc., also operates as franchisor for Bread Garden Urban Cafes,
a concept with 11 restaurants in the metropolitan Vancouver, Canada area.
Bread Garden Urban Cafes serve coffee, pastries and breakfast items as
well as lunch and dinner along with a wide variety of desserts. To find
out more about Spicy Pickle (OTC BB:SPKL.OB - News), visit our website
at www.spicypickle.com/.
Forward-Looking Statements:
Certain statements in
this press release, including statements regarding the number of restaurants
we intend to open, are forward-looking statements. We use words such as
"anticipate," "believe," "could," "should," "estimate," "expect," "intend,"
"may," "predict," "project," "target," and similar terms and phrases, including
references to assumptions, to identify forward-looking statements. The
forward-looking statements in this press release are based on information
available to us as of the date any such statements are made and we assume
no obligation to update these forward-looking statements. These statements
are subject to risks and uncertainties that could cause actual results
to differ materially from those described in the statements. These risks
and uncertainties include, but are not limited to, the following: factors
that could affect our ability to achieve and manage our planned expansion,
such as the availability of a sufficient number of suitable new restaurant
sites and the availability of qualified franchisees and employees; risks
relating to our expansion into new markets; the risk of food-borne illnesses
and other health concerns about our food products; changes in the availability
and costs of food; changes in consumer preferences, general economic conditions
or consumer discretionary spending; the impact of federal, state or local
government regulations relating to our franchisees and employees, and the
sale of food or alcoholic beverages; the impact of litigation; our ability
to protect our name and logo and other proprietary information; the potential
effects of inclement weather; the effect of competition in the restaurant
industry; and other risk factors described from time to time in our SEC
reports.
Contact:
Company Contact:
Marc Geman
Spicy Pickle Franchising, Inc.
(303) 297-1902
Email Contact
http://www.spicypickle.com
Investor Relations Contact:
Pamela A. Solly
Cirrus Financial Communications, LLC
(720) 489-4912
Email Contact
http://www.CirrusFC.com
Source: Spicy Pickle
Franchising, Inc. |
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