3SOF

Fill the gap, it is too difficult to read your answers in red so I won't. I would try blue next time. There will be another sell off and it is probably on going because of the 5th CD that is due to expire.   Again, it is a BDC so they are allowed to raise $5 million dollars a quarter. 

Fill-the-gap, do you still own this stock at the higher levels?

I have no position in this stock, I sold at a loss a long time ago.  I was just trying to help people by letting them know what I discovered at the time.  I personally would never invest in this company again.  And as Mr. Randolph would stay the story is all in the chart.

Good luck to all holding.

On more thing.  As you can tell by my questions to management, I was mislead by the management of this company not once but several times and I felt the company was not very professional because when you call they don't answer the phone during business hours.  The last time I called to get answers a woman answered the phone but when I called back to confirm if she recieved the fax she did not answer the phone.  I called at least twice and left a message.  When I asked IR what a BDC means I was told to look it up and only after continually asking questions about the float did I find out that they are allowed to raise $5 million dollars a year because it is a BDC without annoucing it to shareholders.  When I asked IR at the time if I could leave a message for management.  He said, management has told him they are not interested in taking call from investors. And I believe him because there were a lot of people at the time trying to reach management with no avail.  Apparantly, now they are answering the phone but it is too late.  I also don't like the fact that the CEO is busy reading the raging bull and asked people for their user names.  How can a CEO be running a company when he is busy reading the Raging Bull.  I don't even have the time to read the Raging Bull.

As they say, fool me once shame on you! Fool me twice shame on me.   I got fooled once but I will never get fooled again by this management no matter what answers or how good they make things sound.  His answer to question 10 leads me to believe that their will be ne earnings for the next quarter.  ZERO!  As Mr. Randolph once said, "do you know of a CEO that says bad things about his company?". 

  I've been watching FCCN since the last runup where I bought and sold. It has been in a range from .02 to .032 for sometime with light volume. In fact, one could have bought at the low .02's and sold at the high .02's a number of times. Every time it hits the lows, buyers step in and it goes up. I had just checked it yesterday and saw it was at .022/.023 and was thinking of buying...then I saw the post here and before I could put in a buy it was up to .026....I am in though...this stock can move fast on little volume. And thanks for the DD FTG...I live in Ohio...looking forward to trying their food out.  

  Thanks for your imput also, SS...I see all stocks as risky these days...it's the world we live in. Pumpers and dumpers everywhere. To date, this is the only place I feel I can get an honest opinion. RB, from what I've seen, is full of P/D's and misinformation...you can get early leads there, but you must be careful and always read between the lines, so to speak. I believe there are people there willing to do/say anything to make a stock go the way they want it to go....$ in their  trump honesty/integrety/morals/values....is it any wonder I am skeptical of every stock everywhere....you just have to make an uneducated guess, and always be ready to RFTD if your guess is going south. 

runforthedoor,

I agree with you that there are alot of people with agendas on the raging bull but I have to be honest with you and tell you that the Raging Bull FCCN thread is where I first found out about the CD's and that the float was 5 billion.  Later, I called the company to confirm.  One additional information that I found out on my own was that they are allowed to raise 5 million dollars a quarter because it is a Business Development Company.

Anyway, I wish someone on 3stocksonfire had mentioned the authorized shares were 5 billion and that they are allowed to raise 5 million dollars a quarter and that the OS had been climning steadily each quarter. 

I am suprised that some posters on this board who claimed they had spoken to the CEO earlier on never questioned him about something as basic as the authorized shares.  Had I known that I would have never invested in FCCN when it was first recommended on this board.  Although, I have learned a lot from 3stocksonfire now I do my own dd prior to buying any stock that is recommended because I lost a lot of money on FCCN and I am not too happy about it.

RAMSBURG,
GOOD CALL! GOT IN AGAIN YESTERDAY.NEXT WEEK GOOD RUN IMO. TECHNICALS AND MOMENTUM LOOK GOOD. THANKYOU AND TO YOUR SUCCESS!

Thankx
I will buy monday more
                                Good Job !

shootingstar, you've posted this message 10 times on RB. Now you're started spamming 3penniesonfire with the same exact message. You sold, ok, move on.
You bought on july 26th at the high and didn't average down, you lost alot of money when you sold on aug 22nd.
If you think 100 million shares is alot, then you may want to buy an OTC company right after an RS.
Let me tell you something, regardless of technical indicators pointing to a strong upside next week, just on expectations alone, this company is worth many times it's current valuation. Now consider 73 sales that will grow into 150 by the end of the year. If FCCN were to trade on a major board, it's PPS would be around $5 to $10. But even on OTC, believe me that by years end and if sales come through as expected, even with 100 million shares, FCCN will be trading at least at 20 cents. Why? With expected yearly revenues from restaurant sales of 9 million (60K times 150) and expanding franchise sales in 2006, we're looking at a 2 times sales valuation and 1/3 future sales valuation (considering the 900 restaurants projection). And this is only kokopelli. Even with the current announced 73 sales, we're looking at a forward revenue of 4.5 million. Current market valuation: 550K (or 1.5 million with 60 million shares).  So just in current valuation alone, and if trading at the conservative 2 times sales and considering 60 million shares, we should be trading at 15 cents, and that's where we're heading. You do the PPS valuation math.

Oh great.  Now the pumpers from Raging Bull are here. Get real mrford10036.  We all know FCCN has nothing going for it. 

In Blue for ShootingStar...

Some pennies (HISC) have nothing verified , .PK and unaudited numbers.  It hit 15 cents.  So taking chances on FCCN with a real product, confirmed sales and facilities that the public can visit automatically makes it worth more than 3 cents.[/color]

Shooting Star,

I truly respect your due diligence with FCCN.  Remember folks, we are trading pennies.  If everything made perfect sense then they would not be pennies.

And a Business Development Company valuation is based on the value of the companies under the umbrella.  Frank told me that they are currently doing a new valuation and it is coming back much higher in their opinion.  This may also be released at some point.  But just the move from 50%-90% immediately increases the value.

Below, I will reply to your statements.  Keep in mind, these are my opinions based on personal due diligence.  Even called the owner with the rights to Ohio.  Call him if you need to hear about the training, food, cost...etc.  His only issue is Sonoran vs. Mexican in the name.  Well spoken and intelligent person.  216-338-5995 KSG of Ohio LLC.

Quote from: shootingstar on September 16, 2005, 06:11:01 PM
FCCN was heading to much lower levels if it wasn't for Rambsburg's post today.  If you notice the volume had dried up.  I would be very cautious about getting back into FCCN.[/color]

-  The price was rising on more than double normal volume prior to Ramsburg posting.  Ramsburg and David are straight shooters.  They do not buy, pump and dump.  The beauty of this site is that it offers intelligent dialogue without the chaos of most message boards.  You are saying that Ramsburg loaded more than the normal percentage on FCCN ?  Or are you saying that all people reading the board happened to be checking the FCCN Message Board here and then without any thought all fired in buys ? 

This was not e-mailed to the members, just a thought on one of many stocks listed on the site by Frederick.  Even the e-mailed stocks usually do not spike immediately.  Not all members instantly make a decision from one post.  So the time deal of his post and the stock appreciating today have limited correlation.  Now, Frederick is very well respected, so some may very well have purchased.  But usually there is a time delay for people to get a chance to read the posts each evening.  I actually expect the buying to come next week instead of today.  Word seems to be just getting out.

Remember, you also have investors like me.  We all saw the rise to 8 cents and kicked ourselves.  I decided to do some dd with phone calls to all involved.  Then I realized that the filing should be strong.  The price held above 2 and accumulation began.  Many are waiting anticipation of the filing.  Management will tell you to expect some positive developments with the filing and potential PR in regards to it.  Who knows what to expect.  Except that those who purchased the 73 sold had to pay some of the Franchise Fee.  And FCCN does not incur ANY costs.  The investor pays all buildout and expenses in development.  FCCN supervises the operation to maintain quality and a uniform brand name nationwide.I took it a step further and inquired as a potential Franchisee.  Had detailed conversations about plans, cost...etc.  The packet was very professional.  They even followed up. 

Here are some of the reasons I sold FCCN:[/color][/color]1) I was very dissapointed by the news that came out on Friday August 19th.  FCCN sold its interest in Fit-n-Healthy Market Cafe to CEAT and apparently they both have the same CEO or at one point they did. It was sold for $50,000.

-  This was a question that needed to be addressed.  Here is a reply from management to hightidesurfer on another board.

Prompt Response From Ed Within 24 Hours.

I did receive a prompt response from Ed regarding certain issues. Since everybody is playing by the rules now and no insider information is given I don't mind to disclose: Here is the question /answers to an email I sent last night to Mr. Edward Heisler.

....

1)I haven't spoken with anyone who knew fccn even had Healthy Cafe in their portfolio....

-Answer: "When I came on board in April and started reviewing the company records I discovered that late 2004 the company, then BGR Corporation, had received $50,000 from an investor for the concept of Fit-n-Healthy Market Cafe. After further review it was revealed that the company had not formally set up Fit-n-Healthy Franchise Company, LLC. I then moved forward to set up the LLC which was approved in late May after the March 31st 10-Q was posted."

2. How can it be a win-win for CEAT and FCCN, afterall if it is projected to generate $850k per annum, why sell it for $50k? (Esp. as we are reportedly looking for new concepts). I was told by Gary a main reason for the sell was to focus on what we have.

Answer: " Gary is correct in what he told you. The Board and I feel the company does not need another concept that needs to be built from the ground up. It is very costly and we have enough on our plate with other concepts. If we held onto Fit-n-Healthy it would be at least two years, with our current schedule, before full development thus making our ROI at least three years out. Why continue to pay interest on a note when the ROI is so far out? The money can be spent on companies already developed with franchising started. These are the new investments we are looking for."

I am wondering what else may be "pulled out of the hat.?" No offense but there doesn't appear to be very good communication now within the company.ie. Delayed 8-ks etc. It is my understanding that the sec rules state an 8-k has to be reported within 4 business days from any event which may positively or negatively affect the stock value. We all know it took a long time for the 8-k on Healthy Cafe.

Answer: The Fit-n-Healthy agreement was executed on 08-15-05. The 8-K was filed on 08-18-05. The following is a link to our filings.

http://knobias.10kwizard.com/files.php
What do you all think? I don't want to put a bias spin on it here.  

2) If they sold Fit-n-Healthy Market Cafe to CEAT then they can easily turn around and sell Kokopelli's to CEAT for $50,000 too.  As a matter of fact, there is nothing really that can keep them from moving all of their assets to CEAT. 

- What would be the purpose for doing so ?  Could happen, sure.  But then why have FCCN in the first place ?  And this blows the theory of them selling the authorized shares to market.

3) The authorized shares is 5 billion and they will probably be using all of it.

I will call Monday to discuss this with them and post it here.
They are not actively selling to market with the 5 billion, if that is the number.
Many companies have billions authorized.  All we can go on is the current and a pattern of increase with the filing.  As of now the CEO says, 60 million Outstanding and 57 million float.  Does not seem like they are dumping to market at this time.  Filing will tell. [/color]

4) I was told FCCN is a Business Development Company but never got an explanation as to what it means.  When I questioned Andrew in IR about the float, he said they are allowed to raise 5 million dollars a quarter by selling shares without announcing it because they are a Business Development Company. Therefore, they can use up the 5 billion shares authorized easily. Outstanding shares 2-11-05 was 5.34 million...outstanding shares 4-07-05 was 18.927 million....and now according to the CEO it is heading to 100 million.  As one poster on another website said "hmmm...no shortage of shares here and someone's making some $$$$...OS up 1100% in last 6 months....makes me wonder.... "   Andrew in IR thought it might be a lot more than 100 million shares just based on the volume alone.  The CEO told me that it is being shorted and because of the naked shorts out there is no way of really knowing the exact amount of shares in the float.

If they have raised 5 million dollars a quarter then where did all the money go?

- Will have to investigate this one.  Not sure of the answer.  We will see on the filing.  What would you prefer them to be ?  They are in the business of selling Franchises.  With multiple companies under the umbrella, the natural title is BDC.  They do not need to raise capital !  Understanding the equation for opening a location will confirm this.  The Franchisee pays all expenses. And the Franchise fees and then the 6% trail pays FCCN overhead.  Sure, if they began raising capital, then we can be concerned.  We can evaluate on the filing.  But assuming they are dumping shares to raise up to 5 million is a pure stab in the dark.  The total shares has barely risen.

5) Ed Heisler (the CEO) owns only 253,709 shares. Why do you want to own more? 
http://finance.yahoo.com/q/it?s=FCCN.OB

-  The company seems to hint at positive news coming around the filing.  I directly asked the same question.  Of course, they cannot come right out and say.  I speculate some insider buying will be announced. 

That said, I would trade very cautiously.  There are a lot of people on raging bull who own FCCN and are looking for an opportunity to get out. One poster says, "I haven't seen one post thanking Ramsburg for the Cramer like bounce. Thanks from me Ramsburg, we needed that to hold us over."  And you know why he is thanking Ramsburg because it was heading to zero.  IMO.

-  The selling pressure has subsided.  It has been a long time.  I placed limits below .022 for 9 days and they were not taken.  Only .022 and above.  Why would people all of a sudden dump now ?  Investors are waiting for the filing.  It is a buy the rumor situation.

Folks, making money in pennies is often based on speculation.  You dig and formulate an educated guess based on the information.  Sure, hindsite is always 20-20.  In my opinion, the signs are bullish.

-  Support has held over time
-  Filing coming with anticipated positive PR.
-  Now have 90% (up from 50%)  This will be big as they get going.  Changes the current valuation immediately.  Remember, they will get initial Franchise Fee, then 6 % Revenue and 1 % advertising,,,etc.  Do a valuation on 73 units.  And 2 are open in Arizona, so this is not all speculative. 
-  The management and a Franchisee were willing to give me time to ask the tough questions.
-  I am comfortable holding FCCN until they prove otherwise.  Remember, this is BB, so they will lay it all on the table.  If it were a Pinksheet, then we could be concerned.

I am willing to give it a shot.  The float is much lower than many BB stocks.

Just one opinion.  Call them and do the dd.  We all have traded companies with alot less information available.  There will always be 2 sides of the fence.  But I am here to make money. ' Paralysis by Over Analysis' is not warranted yet, imo.  They have 2 open.  Patience, at least until the filing September 28th.  Risk reward does not get much better.

Do not take this as a recommendation to buy.  I will continue to buy into October 28th.  Management has not given me a reason to doubt that the filing will be positive.  The volume is also not indicative of a P&D scheme.  Most pennies are concepts, FCCN has locations that you can visit.
 

Tell me what will trigger a selloff at this time ?  They are ramping up and plan to open 1-2 per month.  You see how the TA shapes up in a matter of minutes.  Look where the chart has been recently.  Now compute with 90% stake instead of 50%.  It should automatically take us up on this valuation alone.  Explosive, imo.

Do what works with your comfort level.   

-Jeff-[/color][/color][/color]

Fill the Gap...

I must applaud your constant indepth efforts on doing your due dilligence and sharing them with us. You are extremely informative and go to great lengths to clarify and resolve any issues in question. The method in which you respond to others queries or comments is extremely well formed, direct, intelligent and respectfully written.

Wow, you definitely know your stuff..I'm always impressed

I appreciate all your posts and all the hard work you do to keep us well informed and abreast of all your findings in relation to the  company in discussion.

Your expertise and experience in fundamentals is what has invaluably contributed in making 3SF a  highly regarded investors site.

Thanks very much and please continue doing what your doing!:D

Have a great weekend

julia

Quote from: fill_the_gap on September 17, 2005, 06:17:32 PM
In Blue for ShootingStar...

** And please do not post the same comments each day.  This site is a place for cordial discussion.  Also limits credibility.  Your anger shines through. 

Jeff,

First, I am not posting the same comments each day.  This is the first time I have posted on this FCCN thread and I only posted my comment once.  I have posted it a couple of times on raging bull over the past couple of weeks for newbies and a lot of people have thanked me for posting that information because they found it very helpful.  I wish someone had posted those facts for me when I was looking to invest in FCCN.  That said, I am surprised to hear you say that I keep posting the same message when in fact you keep posting duplicate messages on several FCCN threads on 3stocksonfire.  

Second, I am not angry so please don't put words in my mouth but obviously you are angry and have an agenda.  I have no position in this stock and I am just trying to share what I discovered to help people do their dd.  

Third, my creditibility is not being limited here because everything I have said is the truth and can be verified but your credibility is at stake when you are so threathened by the facts that I got directly from IR, the CEO and the PR articles that I read.  

Fourth, thanks for posting it in blue but I did not read it because you turned me off so I have lost respect and credibility in you.  

That said, I don't appreciate your hostile attacks and I will no longer be responding to you. I think you need to take your own advice and act in a cordial manner when discussing stocks on this site..

I would strongly advise people to read my posts on FCCN but most importantly to do your own dd.  I am certainly not telling anyone here to buy or sell but just to be cautious.  

Good luck everyone.  

Boys, Boys, Boys.

You have all put great efforts and careful attention to this post.  But the truth is none of us will know what the real story is with FCCN.   It will tell us in the chart in the weeks to come.  Penny stocks are extremely volitale, that's why they are so cheap.  They are very risky, but once in a while you can make a ton on a good pick.

Personally I usually don't care to much about all these detailed analysis.  I just go with the chart and volume/price action.  I have made a nice chunk of change on FCCN, and still hold some shares. 

Lets not turn this into a pissing match.   Lets appreciate both sides of the argument, and keep it clean.

Shooting Star,

No offense was intended.   
I happily edited the part that bothered you.  Please read the post.  It is all about FCCN.

I was referring to mrford's comments below about your multiple postings.  It was misinterpreted.  The point is 3stocksonfire is a different kind of board than Raging Bull, etc.
Each side is presented and people make educated decisions.

It was a blanket statement for the board.  Already said that I respect your information on FCCN.
You can be a strong asset to SOF with your analytical ability.
It would be nice to see you do the same with other companies too.
We all like when someone digs to share information with the community.

We should all work together to post accurate information.

You have spent a lot of time in researching the company and we all appreciate it.

Please let us know why you spend so much time on it each day if you would never buy FCCN ?  Always nice to know a motive.

I spent an hour on the reply to your post.
And even changed it to Blue just for you.   
Take the time to read it to ensure accuracy.

Let's all work together and continue to make this an outstanding community.

3stocksonfire is the only community that posts remain about the company.  When they turn to the poster, we all need to take a step back.  We all are here to make money and have fun.  The site has provided well thought out threads for investors to make a decision.

Bottom line is nobody is saying it is going to $ 1.00 Monday.

But if 1.6 million shares moves the price 30%, then I am not worried about the number of shares outstanding.  Not a bad return for a day.

My opinion is that FCCN is a buy.  It is being overanalyzed at this time.
It moves on any buying.  And it has held the same range for weeks.

The selling has taken place, imo.  And barring any serious surprises, FCCN should move into the filing. 

My research paints a bullish company on the 90% ownership alone.

Please do not make this a battle of posters.  The filing will tell the truth.  They are .OB and will lay it all on the table.

Again, just one opinion in many.

Thank you for the heads up with your DD.  It is something to consider.

-Jeff-

  I'm with you...may load up some more...it's only pennies.