3SOF

Nice bit of news, bidding up $0.064:
Franchise Capital Corporation Announces Agreement for 12 Kokopelli Franchises in S.E. Michigan Market
Business Wire - July 26, 2005 08:30

PHOENIX, Jul 26, 2005 (BUSINESS WIRE) -- Franchise Capital Corporation (OTCBB:FCCN) today announced that Kokopelli Sonoran Grill has entered into a franchise development agreement with a Michigan based developer/operator to open a total of 12 Kokopelli Sonoran Grills in Michigan. As per the agreement there will be 10 restaurants open in the Greater Detroit market as well as one each in East Lansing and Ann Arbor, near the Universities. The greater Detroit locations will include restaurants in Plymouth, Livonia, Royal Oak, Novi, Sterling Heights, Rochester and others. The first locations have been chosen and the developer plans to open 2 to 3 Kokopelli Sonoran Grills per year.

Franchise Capital Corporation Chief Executive Officer, Ed Heisler, commented, "As a former Michigander it is very exciting for me to see Kokopelli enter the Michigan market. This latest sale of 12 franchises in Michigan reflects Kokopelli's goal to reach all the corners of the country. I would like to remind shareholders that each Kokopelli franchise sold is expected to generate up to $60,000 or more per year for the franchise company on an on-going basis from royalties, in addition to the cash sum from the purchase itself. To date, Kokopelli has sold 49 franchises from coast to coast. This number will only continue to grow with more announcements of franchise sales to come in the coming weeks."

Kokopelli's was founded in Phoenix, Arizona in 1997 and differentiates itself from other fast-casual chains by serving authentic hand-blended Sonoran spices, beans slow cooked everyday, never refried, and tortillas steamed to order. All food is served to its customers "platter" style on hard plates with flatware. Additionally, Kokopelli serves menu items found in full service Mexican restaurants such as Grilled Salmon with Mango Salsa, Steak Verde with Tomatilla Salsa, Pollo Colorado with Smoked Cheese and Peppers, beer, wine and frozen-margaritas.

Kokopelli's offers made-to-order big-burritos, tacos, fajitas, and other Sonoran favorites, using only the freshest ingredients, using no preservatives, additives or conditioners, on a dine-in and take-out service in high volume retail centers and other high traffic commercial locations throughout the United States.

Bought more on @0.058.   

The fundamentals are sound with FCCN....
1. Growing number of franchises and thus revenue.
2. Has controlling/majority interest in 4 franchise properties: Kokop[elli, My cousin Vinny's, Kirby Foo, Com Stock Jake.

In addition has 100% ownership of Fathom Business Systems, a Point Of Sale Software company that supplies POS systems to its franchises plus outside restaurants. Note, Software has 80% incremental profit margins!
3. Clean Balance sheet!
4. Low float. 35M shares fully diluted. Current O/S 30M
5. Capital not needed for growth as Franchisees put up the capital.
6. Strong management and finally

7. Good healthy Food!

Couldn't resist getting back in at .049.  Hope this is the bottom for this run.

 

Is there a chance of getting back to the .06-.07 levels?

Ramsburg,

Know you are holding.
What are your current thoughts ?

Same with Aussie and others.

I bought a third of a position yesterday and may add to cost average.

I believe this is a normal reaction, after all: 7 bags in a few weeks makes a lot of people think about profit taking.

I've sold part of my position yesterday near the $0.06 resistance, and I'm keeping the rest whatever happens on the next days. (I'll probably buy-back some of the position during this deep).

best regards !

As I said before sold 50% around $0.057, thinking of adding again but looking for a pivot. I think this is normal pullback after huge advance. Still above my weekly breakout at $0.045.

my buy order was filled at 0.0455 a short time back....looks like an intra-day reversal...anyways, for the daily chart, a hammer today would be just fine!

Ramsburg,

Still holding your other half.Thoughts on another run and then bust through resistance?

what a day,  up 35%....did you see the last hour...very strong close at 0.073 on day high...

Yes, i'm holding the other half, unfortunately i was out of the computer during most of friday session and didn't buy back that half . . ,
Anyway, i'm looking to big advance this week, the 0.10 area should be easy. 

From a TA perspective I see it.

Fundamentally, it does not make sense here.

Announcements and the future is promising.  But they will not bring in revenue for a long time.

Review the balance sheet.  Then consider the industry.  And they are asking $ 60,000 fee per location and operating fees.

But this is SOF, and FCCN has been on Fire.

Nice pick, Frederick.

read this portion of the recent PR:

Franchise Capital Corporation Chief Executive Officer, Ed Heisler, commented, "As a former Michigander it is very exciting for me to see Kokopelli enter the Michigan market. This latest sale of 12 franchises in Michigan reflects Kokopelli's goal to reach all the corners of the country. I would like to remind shareholders that each Kokopelli franchise sold is expected to generate up to $60,000 or more per year for the franchise company on an on-going basis from royalties, in addition to the cash sum from the purchase itself. To date, Kokopelli has sold 49 franchises from coast to coast. This number will only continue to grow with more announcements of franchise sales to come in the coming weeks."

Future revenues = $60K X 49 = $2.94 million

That is from royalties alone, add to that "the cash sum from the purchase itself". I dunno how much, but it is money nevertheless.

I understand the royalties will not kick in until the franchise itself is open...but atleast you get an idea of where the valuation is coming from, right?

Now here's more: Total O/S as per last 10Q filing (confirmed by conversation with Brad Miller, CEO) is 35 mil. shares.

Current market cap = OS X pps = 35 mil. X $0.073 = $2.55 million

Add to that the fact that float = 18 mil. approx. and a significant portion of it is in hands og buy and hold longs (based on recent vol. action), and the way the MM has been increasign the "spread" between BID and ASK....(somebody seems to be desperate for shares, IMO).

anyway, all of the above just to give you an idea. GLTY. 

Quote from: AussieTrader on July 26, 2005, 12:06:43 AM
Regarding my remaining 50% I am gonna be looking to sell in the $0.06 to $0.20 zone (huge zone I know but the chart shows a couple of big 1 day red candles run up to $0.21in May last year, extreme momo continuation could send a spike that way.

Sticking to my plan, although I will not be selling at $0.06. My zone will be $0.10 to $0.60. An even bigger zone than before, am I MAD, nope here is my reasoning. The attached chart shows the period Oct 3rd to Oct 13th 2004. Price fell from $0.69 high to $0.11 low, 6 trading days and the volume was tiny.

There is No volume based resistance in the way of FCCN.