Editor: No guarantees- think International. There is very robust growth going on in other regions of the world. Just an educated guess. Here’s a fact- I haven’t sold a single share in several months, and still have a nice profit in all my shares with the exception of the $100k I put in last December at $.85. That’s not to say I won’t if I really need the cash, but I have decided to simply think long term and disregard the price. 

Editor: I have heard there is some delay of a few days or so due to some power delivery issue. It’s about ready to open. Whether it opens this week, next week, or the week after is not important. I don’t know why you would even mention this- it’s absurd. It will open in pretty short order.  

Editor: In reality, SPKL is being effected by the recession in the sense that growth has slowed a bit. As it stands today, growth will not be as robust in the second half of the year as the first half. We need a big fall out in commercial real estate, which hasn’t really happened yet. In the interim, the company is moving in an interesting direction. If it pans out, shareholders will love it. On the plus side, despite the recession, the existing stores are doing just great. In fact, the new store is Portage, MI is doing so well it threatens to be the first $1 million store in the chain. The market perception right now is to avoid stocks that have anything to do with US consumers. As soon as that perception changes, we’ll start getting strong again in the market. I would expect that change starting in October. 

Kind regards,

Bart

Editor: Losses are going to be up as the company invested a lot of the capital it raised last December to build and buy company owned stores and build out both the infrastructure required to run their own stores and ramp up to handle the additional 90 stores that still need to be built. You’ll see a huge percentage top line growth in Q2, but high expenses associated with the build out of those stores. BTW- the word I am getting is the stores are doing great, but expansion in the second half of ‘08 is slower as a result of the environment we all are putting up with. Losses should now start going down in successive quarters, and in 2009 SPKL should make the turn to profitability. I think this is pretty much reflected in the stock price now. Look for the company to make some interesting moves over the next couple of months that would paint a whole new picture on things. I have the company focused on shareholder communication- I want them to make sure investors are informed- good, bad, or in the middle.

Editor: It’s really somewhere closer to the 50 to 60 range- the mix has changed a bit as well with the addition of the company owned stores, which is a positive. However, the company wanted to be really conservative in its public disclosure. The number has gone up as the company has built an infrastructure that allows them to become really big. They need to pick it up in the second half of the year. Growth has slowed a bit, but the stores are doing just great. I hear the new Portage Michigan store is on track to become the first $1 million store. 

Editor: I don’t believe the Brooklyn store is quite open yet. Apparently, there is some issue with the power company. Other than that, I am told it is ready to go. The company is stumbling a bit as it is still have trouble locating commercial real estate that fits its needs. While the residential market is in a complete depression, the commercial market hasn’t really cracked as much as it will. New signings are slow, meaning new openings are going to be slow in the second half of the year. Things could change with some moves the company is looking at, but I think the stock’s performance is 100% related to the economy- let’s face it, stocks of companies that sell stuff to consumers in the US are not investor’s favorites right now. 

Editor: Starbucks built thousands and thousands of stores, and paid too much for the commercial real estate in many cases. If it’s a problem location for Starbucks, why would we put a Spicy Pickle there? They aren’t closing the ones that are making money. We have looked into it, and we would simply rather be next to a profitable Starbucks. 

SPKL is getting killed today. No news? I really don’t get it. I’ve been looking for a place to get in but every time I’m about to pull the trigger, it drops more. Very disconcerting. WHY would anyone sell?? If the expansion is going well, the future will be bright. A mystery wrapped up in an enigma.

BD

Editor: I just wrote up coverage of today’s news on #42. In fact, expansion is slowing as real estate continues to be hard to acquire at the right price. I believe that will change over the coming months. I believe it is now priced into the stock. Second half growth could be more International in flavor if the company has set its sails correctly. Also- people are selling because it’s a source of funds they can live with to cover other issues they may be facing. It’s typical in a bear market. 

Editor: Naturally, you don’t have the courage to identify your self so the company can sue you for slander and liable. No stores have closed. 

Editor: Just sell it if you don’t like it. No one likes the price, but it can’t be helped. Obviously, you should have sold at my SSL of $.90.