To OTC Journal Members:
 

Pickle (OTC BB: SPKL) Powers Into Michigan

If you think Friday's two events were favorable- (the $6 million capital injection and the two new store openings), you have to love today's post close news. Here's what I want you to come away with regarding today's news- this evolution is a glimpse of what's to come for Spicy Pickle shareholders, and it's the sort of event I hope we can expect to read about on a regular basis for the foreseeable future.

As the concept proves out, and the individual store performance becomes more recognized by the fast casual industry, SPKL is attracting a higher level of franchisee- these are not the individuals with no restaurant experience opening a Quiznos or Subway and buying themselves a $50k per year job- these are the franchise operators with restaurant experience who have local infrastructures- marketing, payroll, construction, real estate acquisition- all located in one central office servicing one of more franchise concept with real profit numbers. These are the kinds of franchisees that can help Spicy Pickle expand very rapidly in the future.

Fast forward to the post close news today: SPKL announced the closing of a 10 store franchise agreement which takes the company into the heart of Michigan: Kalamazoo, Grand Rapids, Ann Arbor, Lansing and E. Lansing. I can't wait for you folks who live in this area to try the food. It also marks the 16th state SPKL will be in. 34 to go.

The real estate acquisition team is already trying to find the first location- in fast track mode. Look out Michigan- here we come. 

SPKL has a lot of momentum, and I believe you are going to see more franchise signings like this one. These are the professionals who can expand far more rapidly than the one and two mom and pops, and do so far more profitability. This is the future of SPKL on the franchising side, and the pace will probably pick up.

The last two times I published on this stock, I showed you the 61.8% retracement level- it was about $1.10- I've drawn in the horizontal line to refresh your memory. In a declining market environment, which is what we clearly have now, you have to look at these big pullbacks.

Since the stock has held that level twice now, we can assume it's the support level until other wise notified. If it drops much below the $1.10 number we could be in for further downside pressure. If it does, it won't be because the company is not delivering- it will be market driven.

So, let's look at the possibility of a further upside move, even in the face of this nasty market sell off. As you can see from the chart, the stock has been declining since it made the $2 high in late October, one month after introducing the company to you at $.80.

In today's trading session, the stock broke out above its downtrend line on increasing volume- it traded 1/2 million shares today- 100k more than Friday, which was one of the few big down days for this stock. If we were in any decent market environment, I'll bet this stock would have been north of $1.50 today.

I'm sure people are selling in order to raise cash as the market environment for all stocks has been very tough. SPKL was about the only thing that was green on my screen today. There was a sea of low volume red- it looked like the middle of a very hot and dull summer.

Based on today's post close news, I suspect there will be another gap at the open tomorrow. The excess supplies have probably been dealt with by the market over the past 2 days. 

We could have a break out, or it might pause to digest the gains in against the backdrop of a miserable bear. It really doesn't matter. The market will have finished blowing its brains out in the next week, and January will bring an absence of supply against investor bargain hunting. 

In the meantime, Spicy Pickle is now going to have more the 100 stores eventually- here's the question- is this company going to have 500 stores? If it does, this will be a huge win for your portfolio. Luv it. Own it, and own more.

Here's today's news for your review:
 

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