We’ve been lucky. For those of you who didn’t catch it, the Pickle got a little national recognition on Monday morning via the Today Show.
A segment entitled “Investing 101 For Women” featured a young woman’s adventures in the investing world. After taking some money out of a 410k, buying a house, selling a house for a profit, and investing in the stock market, here last move is to invest in a restaurant chain- and- they flash a picture of a Spicy Pickle restaurant. Awesome. Here’s a link to the video clip:
http://video.msn.com/?mkt=en-us&brand=msnbc&fg=rss&vid=148d5e1e-5b80-4e7f-86f8-212a04f4bb3f&from=05
At this point I believe the stock is going up because it is going up, and I also believe it is overvalued at this level. I have been a seller, and will continue to be at this lofty valuation.
I believe this company will have a breakout year in 2008, and the stock could go higher than where it is today. I’ll have a look at the chart when it cools off. For now, I believe you should be taking some or all of your money off the table, and waiting for the stock to cool off.
Here’s the chart:
Simply streaking. And I thought it was more of a sell at $1.30. People call me all day long and tell me they are not worried about the price- they like the growth potential and love the food.
The momentum is fun, but it will head the other way when the investors who are buying the stock because it is going up decide to sell it because it is going down. Don’t get caught holding the burning match when it burns down to your fingers.
Comments and questions are welcome.
I’m hopeing for a pull back. sold some at 1.4 and will sell some more now. It has to stop soon Right. nothing wrong with taking some profits Right Just need some reinforfement.
Thanks
Editor: There will another opportunity.
Have a very small position at 0.85, wish I had more money available at the time. Anyway, I usually do dollar cost avg. when buying a stock. So I feel I am safe at holding onto my position and adding later. I know that no one knows where a stock will end up but do not think that it will hit those levels again any time soon. Any thoughts, usually like to be long term. But would be selling some now if could have gotten what I wanted at the time.
Editor: I have been a seller at these lofty prices. I doubt we will see $.85 again, but there will be an opportunity to accumulate more. Nothing wrong with selling some at these levels.
WTF?!?!
Editor: Exactly
you say sell spkl go up $2.00 you say buy efsf tcgd nidk cpne and they go down what is your motive
Editor: I don’t know what the hell you are talking about. Do whatever you want.
you must have suspected this…here is my concern. you say how good this stock is and how great everything is going yet your sellining?? of course you have to take some off the table but when are YOU planning on buying back in??? next dip, never??HAVE YOU EVERY ACUTALLY BOUGHT STOCK THAT YOU ADVERTISE HERE? you say how good this stock is and how successful it will be in the future so why are you selling??? are you going to buy on the next dip??? i feel like this stock is WAY differnet then all the other struggling companys that you cover. so in end are you planning on buying more shares are just selling all yours???
Editor: Sounds like you are whining. I introduce the company to you at $.80, it goes to $2 in a couple of weeks, and you bitch? Un friggin believable. Of course I am selling. I am telling you its overvalued right now. I might buy back, but I have over 2 million shares which I started buying in 2005 to fund the company long before you ever heard of it. Lots of early shareholders are probably selling because they made a lot of money on the growth. There will be lots more growth. Whether I buy it back or not, I will own a lot more than I sell. I don’t know why you would bitch. Buy it, sell it, do whatever you want. In the spirit of full disclosure I tell you what I am doing. I sold a bunch yesterday, because I believe it is overvalued at this level.
Took your advice and set a stop that hit this morning, and I locked in some nice profits. Will get back in once the price settles out.
Editor: Finally, someone makes a comment who gets it. I hope a lot of you are doing what this gentleman is saying.
Thank you for introducing this pick. Thank you for disclosing your sales and smart move for diversifying YOUR balance sheet.
When you consider average number of shareholders in a security and you hear the CEO say we have over 1000 shareholders already, what is your take on just that one fact all by itself? Is that above average for this type of security on this (OTCBB) exchange AND at this early juncture?
Thank you very much,
Editor: The stock has doubled the price I was hoping to see it trade at this year, and I’m sure there are now plenty of shareholders. This is an exceptional situation considering the history.
What a bunch of whiners.
I loaded up on this stock the Monday after Larry presented the idea. I took most of my profit yesterday and still have my original investment.
Larry is very clear on the risks involved. Who knows what these stock will do, but Spicy Pickle looks to be the real deal. It seems to be trading on momentum and not any fundamentals right now. I will get back in a an appropriate level.
I cannot wait to try the food. I’ll have an opportunity in Las Vegas in 2 weeks.
Thanks!
Editor: Thanks for pointing that out. 15 minute cab ride from the strip. Please share your thoughts on the food when you get back.
I think some of these guys that are doing all of the whining must be from the pump and dump sites and are just trying to dis-credit you.
I personally have found more winners than losers here. I need to learn to follow your stop losses better. Keep up the good work. I rarely check any other microcap sites anymore. Been following you for 2 years.
Thanks for CPNE, EFSF, TTGL and Southland (I hope).
Terry
Editor: My guess- TTGL is the one to own right now. Don’t forget PNWIF- that one could get legs.
Pull most out at 2.02 but this stock whats to stay at 1.90 range how long before a pull back if a all
Editor: Can’t say, but love the way it’s holding up. All of the early shareholders have had ample time to sell, so when it does pull back, it will be to a much higher level than I ever expected.
need new numbers do you think it will take 38.2 retracement?
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. At least a 38.2% retracement. Let’s have a look on Dec 1. That might be about the time to start buying.
I wouldn’t expect this idea to be predictable at all, there are too many long term investors in it now… As you said this may be the best idea you’ve ever had, and I believe you may be right!
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. Yes, but I believe it got a bit ahead of itself valuation wise, and I believe if you want to accumulate the stock, you can wait a month and pick it up cheaper.
do you have an opinion on long term potential for this stock? By long term, I mean 2 years, or longer.
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. $4 to $5, possibly higher. In 4 years I see a company with 300 to 500 stores and a $1/2 billion market valuation.
what do you think the long term (>2yrs)potential for SPKL is?
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. I see a company with 300 to 500 stores, and a $.5 billion market valuation. It could translate to a $5 stock.
Could you please shed light on the meaning of the Spicy Pickles S-8 and what the proceeds will be used for? thx.
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. An S8 is a form used to register employee stock option. There are no proceeds, unless options are exercised and the company gets the cash.
The franchise model has its limitations. Any idea if the company plans to open company stores in a bigger way?
Editor: Sorry for the delay in responding. I was separated from my computer by the San Diego fires. The answer is yes- they have a plan in place to rapidly expand the development of company owned stores in ’08. You will learn more over the next month or two.
Question about the potential for this company… What I thought made this different from the others was that the majority of the money coming in (after the 40 franchises to cover expenses) will be profit. Shouldn’t this equate to a higher dividend, which should lead to a higher stock price. Won’t this change how valuation is determined??? Seems that valuation for 300-500 stores should be higer if this is the case??
Editor: I don’t believe they will pay a dividend for years. However, your thesis is correct. With 300 to 500 stores open, this stock should be considerably higher- $5 range is my guess easily. If they get that far, someone will probably buy them out.
Thanks for the newsletter, best one out there. What’s their target ratio of company/franchise stores in 2008? Is there any economy of scale, or are they looking at the same $300k+ per store that it costs a franchisee?
Editor: As it stands right now, there will only be one company owned store going into 2008, and it will be a really big one as it will have a bakery that serves all 23 Denver area stores and a training center. However, the company is looking at several financing options that will allow it to expand the roll out of company owned stores very dramatically. There are plenty of offers, but the company is committed to a financing that won’t be a negative for existing shareholders or toxic to the stock.
Stock is starting to pull back. What do you think would be a good point to add if you can tell at this time with your crystal ball.
Editor: I’m thinking of working on that issue today, or perhaps tomorrow. It’s getting close, but not yet.
Here we are at a 1.43 and I have already stepped up and bought using a staggered order system from 1.64 down to current levels. I am flush with cash from taking your advice and selling at 1.87-1.99. What do you recommend right now? Is there still plenty of stock for sale? Thanks so much.
Editor: We’re close, but not quite there just yet. Planning on working on it- perhaps this afternoon.
Re company stores – are they financing ~25 stores or closer to 50? I suppose if they build 25 in the first year, they’ll be making money and can use profits to move forward after that. Unless they want to be more aggressive. Can you give a sense of how dramatic is “very dramatic”?
Editor: Glad you asked this question so I can clear up what appears to be a misconception. Right now, this company has no company stores opened. They are opening a very large corporate store in December which will serve as a training center for franchisees and a bakery/commissary for the Colorado based stores. The company does not have the capital right now to finance opening company owned stores. SPKL is talking to several potential financing sources about a capital raise, but is not rushing into any sort of deal that would be too dilutive to existing shareholders. If a financing gets done, the company will move towards opening a number of company owned stores. However, we have enough franchises to keep opening franchise locations for the next two years, and the company will turn profitable just on the franchise side next year. The company does have enough money to make it through to profitability on the franchise side, or darn near. Ideally, when SPKL gets to 100 opened stores, it would like 20 to 25 to be company owned.