UFFC- Ufood Grill- is another idea of mine to match my long term belief in Spicy Pickle. These fast casual concept companies can be huge as their reach spreads, but the recession has derailed both of them from the rapid expansion they would normally be on.
I feel both stocks, while still highly risky, have had all of the possible bad news priced into them, and had reached levels that assumed the companies were going into bankruptcy.
Friday’s news put UFFC on solid footing for at least another year financially, and their ability to raise capital in this dismal environment was a bit of a testament to people’s belief in their future.
I thought $.12 was an absurdly low price for the stock, and the market bore me out in Friday’s action. It was the highest volume day in the stock’s history- it traded nearly three times as many shares as it ever has in the past.
The stock made a high of $.25, and closed at $.20. A one day Fibonacci retracment is not a perfect barometer, but it’s a good starting point.
If you’re looking to be a buyer, I believe the $.16 to $.19 range would be prudent- more towards the bottom of the range if anything.
A break through the $.25 level would give us some new upside levels to look at. We’ll see what happens next week. More news would be grand.
Comments and questions are welcome. You won’t see your question answered right away. Give me a day to respond.
Glad to see you involved with George Naddaff(CEO) of UFOOD. The 2.8 million private placement offering should be enough to start a slow and steady grind upward.
Opening locations in Airports amd Medical Facilities & Universities should seperate UFOOD from others.
Did you try the food when you visited?
Editor: I have eaten at UFoods in Boston, Chicago, and Sacramento. They are fantastic, and I wish there was one within 5 miles of where ever I am, instead of all the crap that’s out there now. This company has a big future if they can figure out how to keep things moving in these challenging times.
I am wanting to get in, but do you think it will pull back to the low of last week?
Editor: I don’t think you will ever see the low of last week. However, I definately would not buy it now. I would be more inclined to be a seller if anything. Wait for a nice pullback. I’ll have some thoughts out on it later today.
I think I screwed up now reading your blog. I bought at .28 and then again at .32 after I did a money transfer. I missed the limit price in to morning by .01 or .02 and had to rebuy an hour or so later… Am I am in trouble here now? And do you think we could see it back to the $1 or $2 level next year?
Editor: I hardly think so. In the very short term, it probably depends on news. Over the next few months, it’s not important.
Now it’s time at .20
Editor: Seems to be, and just hanging on to that. Nothing coming out of the company right now.