To OTC Journal Members:
 

Pickle Opens #38- Texas Expansion Continues

Despite the rather boring performance on the chart, Spicy Pickle has now gotten back on the new store opening bandwagon, and is announcing a second new store opening in as many weeks.

Today, just after the market closed, SPKL announced its third Austin, Texas store has opened. There are two franchisees in Austin- one with a restaurant near the University of Texas. The other opened his first store on the outskirts of Austin.

The first franchisee has a 3 store commitment- the second has a 5 store commitment. Today's announcement marks the second store of 5 for this franchisee, and the 3rd of a total of 8 for the Austin area.

As noted in past coverage, Texas has emerged as the leader in potential numbers of Spicy Pickle locations. Once all Texas markets have been built out, there will be more stores in Texas than in home state Colorado. First locations still have not been inked for Houston or San Antonio, but I am informed the choices are being narrowed down.

#38 has the company bearing down on cash flow break even status- it will probably come in the 50 store range, but a lot will depend on how many are company owned, and how many are franchises. As things stand today, there are 2 more company owned stores under construction.

Therefore, when we get to 50 stores, there will probably be 7 company owned, which would yield about $4.5 to $5 million in annual revenues. On the franchise side, the remaining 43 will equate to about $2 million in annual royalties. 

Assuming we arrive at the 50 store mark by year's end, the company should be delivering at least $7 million in annual revs- add in franchise fees for open stores- that's north of another 1/2 million, and you arrive at an annual revenue run rate of about $7.5 million.

Assuming these metrics all come to fruition, you are looking at a 525% growth rate from where the company was at the end of 2007 to where the company will be at the end of 2008.

Now, let's look at the chart, which doesn't give us a lot to talk about:

Like so many micros, SPKL is pretty much frozen on the screen, going through a low volume consolidation phase. Here's the way I see it, and it's pretty simple stuff.

SPKL, and micros in general, got beat up pretty bad in Q1 of 2008. SPKL has rebounded slightly off its oversold low, and has now traded sideways on light volume for about a month. Simply put, everyone who wanted to sell due to headline fear has sold. Long term shareholders are simply waiting it out.

There isn't enough buy side volume to mount a big charge to the upside, but there is little for sale as well. All in all, a bit of a stand off for the time being.

The world of large cap stocks is improving, so with any luck at all small and micro caps will follow behind. Based on fundamental progress, one would think SPKL will be a big part of the next surge in smaller stocks. 

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

Here's the complete text of today's press release for your review:
 

Information is power and timely information is profitable. Become informed and profit from OTC Journal Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the OTC Journal Email Newsletter on a regular basis.

To ensure newsletter delivery, you can add any additional email addresses you may have to the OTC Journal Member List. Receiving the OTC Journal Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the OTC Journal recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery.

Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the OTC Journal, simply follow the instructions located at the bottom of every OTC Journal Newsletter Edition.

If you find the OTC Journal informative and profitable, please forward our newsletter alert service to like-minded friends and associates who share similar market interests.

To ensure newsletter delivery, you can add any additional email addresses you may have to the OTC Journal Member List. Receiving the OTC Journal Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the OTC Journal recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery.

Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the OTC Journal, simply follow the instructions located at the bottom of every OTC Journal Newsletter Edition. 

Go Here to view our compensation on every company we have ever covered, or visit the following web address: http://www.otcjournal.com/disclosure/compensation/section/profile/ for our full profiles and http://www.otcjournal.com/disclosure/compensation/section/alert/ for Trading Alerts. Larry Isen, the editor and publisher of the OTC Journal, through various entities he controls, has purchased 1,200,441 shares of Spicy Pickle at an average cost of $.2125 per share. These purchases were made in Spicy Pickle private offerings. The aforementioned purchases were made between August of 2005 and August of 2006. On 12/15/07, on entity controlled by Larry Isen participated in an additional financing wherein 12 shares of convertible preferred, converting at $.85 into 120,000 shares and 90,000 warrants with an exercise price of $1.60 were purchased. In addition, Larry Isen has received 785,000 shares of Spicy Pickle common stock for consulting services and has purchased 213,343 shares in the open market at an average cost of $.89 cents per share. In addition, MarketByte LLC, an entity controlled by Larry Isen, has received a fee of $30,000 cash, and 300,000 newly issued restricted shares for coverage of Spicy Pickle. TGR Group LLC, the publisher of the Small Cap Network, has received $30,000 and 300,000 newly issued restricted shares for coverage of Spicy Pickle. Mr. Isen is an affiliate of TGR Group. In addition, two other individuals affiliated with TGR Group have purchased a total of 300,000 shares at $.25 per share, 21,961 in the open market at $.76 per share and received an additional 70,000 for consulting services. Current positions of the aforementioned can be found at www.otcjournal.com and www.smallcapnetwork.com in the Spicy Pickle information section. 

All statements and expressions are the sole opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

From time to time MarketByte, LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.

The editor, members of the editor's family, and/or entities with which they are affiliated aside from MarketBtye LLC itself, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter.

The Trustee of the MarketByte, LLC Defined Benefit and Trust (“the MarketByte Pension Plan”) has invested approximately $310,0000 in the Longview Fund (“the Longview Limited Partnership”), a limited partnership in which the MarketByte Pension Plan is a limited partner. No one associated with the MarketByte Pension Plan has any knowledge, information, or control as to any past, present, or future investment activities of the Longview Fund. Longview ocassoinally refers companies to MarketByte, LLC for possible coverage by one of the MarketByte, LLC publications, which publications include the OTC Journal Newsletter. Longview may or may not own shares in the companies that it so refers to MarketByte. MarketByte has no information (outside of information readily accessible to the general public such as SEC filings) as to whether Longview owns any shares in the companies that it refers to MarketByte, LLC. The above relationships should be viewed as a potential and/or actual conflict of interest by shareholders and prospective shareholders of MarketByte, LLC client companies. 

The profiles, critiques, and other editorial content of the OTC Journal may contain statements that appear foward relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTCJOURNAL.COM.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at http://www.sec.gov/consumer/cyberfr.htm. Disclaimer ID: Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site. MarketByte LLC's mailing address is 4653 Carmel Mtn Rd Suite 308 #402, San Diego, CA 92130.