3SOF

The prediction on how this will play out:

Ed is confused as to why people have been selling.  He sees it as cleaning up the company books and setting the stage for value.  Obviously, the uncertainty created panic selling.  But we are back where it was prior to 100% gain in a matter of weeks. 

The deal is 98% finished according to Ed.  The details with CEAT are being worked out.  And since some of the same people are involved, FCCN will get a nice bump in valuation.  But the market short term is not reacting well.  I am scratching my head too.

-  FCCN sells all assets to CEAT for a high valuation including 200k and stock
-  CEAT gets financing for the deal
-  FCCN remains a BDC and in essence has a part of KoKopelli's, etc.
-  FCCN structures the deal to eliminate the possibility of dilution
-  FCCN eliminates all debt on the books and still has a piece of KoKopelli's, etc.
-  FCCN does not have all eggs in one basket
-  Then within a matter of weeks (year end), FCCN will purchase smaller lots of established franchises
-  This is how the future value of FCCN will appreciate with the debt elimination and portfolio of companies

This is my interpretation of how management explained the events to unfold.
FCCN sees it as operating a mutual fund (in essence).  They see it as having the cake and eating it too.  No debt with franchises but remain in control of the interest through stock.

The question is will the public see the overall picture or more days like today ?

Ramsburg?

I'm still in, but I have to say with a pretty sick feeling in my stomach 

Fill_the_gap don't you have that? You even add at .41 you said last week.

Have to be honest, would have gotten out if I hadn't been out that day  Unfortunately I was. Now I'm going to sit it out. A nice reminder of NOT to get into a stock without a trading plan. Because that's what I did  . Expected a fast rise based on the information I read and get out with a profit. So much for that.

Really hope you're right!
Amarens

Yes, I did not expect yesterday.

I was correct about news coming with the dd.
But I did not expect them to sell to CEAT.

Let's hope the valuation and total deal are taken as positive.

And yes, I added in the 4's.     Not going to sell at this point. 

Purchased @ $.021   Until this story is proven wrong, I'm willing to trade this stock.  Market cap is very attractive, given the past qtr was profitable.

Good luck,
poorman1

Management views the recent news as creating more value in the pps.  But it is what the public perceives that counts in the end. 

They see it as retaining KoKopelli's, Comstock Jake's, etc. in the portfolio and now having cash to go purchase existing franchises.  The sale will come at a premium to valuation.

The balance sheet is cleaned up.

Guess each investor needs to evaluate the deal when it hits the wire.

I cannot sell at this level.

I already have a full position so didn't buy on the dip.  I will also hold to see what is to come.

Good buy...poorman...you'll become a richman if you hit lows like that all the time. 

Great buy Poorman .  After yesterday's knee knocker, I'm not sure what to think today.
Will this be a great buy ,  only the market knows the answer.

Quote from: fill_the_gap on October 04, 2005, 09:27:06 AM
And yes, I added in the 4's.     Not going to sell at this point. 

Well, we'll just keep eachother company at this flight 

Amarens

Hi !



Good luck.
Evgeny.

News is out:

Franchise Capital Corp. Increases Its Portfolio Value to over $2 Million in Asset Value
Business Wire - October 05, 2005 11:09

SCOTTSDALE, Ariz., Oct 05, 2005 (BUSINESS WIRE) -- Franchise Capital Corp. (OTCBB: FCCN) announced today that on Tuesday, Oct. 4, the company completed a purchase agreement with Creative Eateries Corp. (Creative). Creative purchased from Franchise Capital its interest in Kokopelli Sonoran Grill, Comstock Jakes, Cousin Vinnie's Italian Diner and Kirby Foo's Asian Grill.

As per the agreement, Creative will deliver $2,161,493 to Franchise Capital for their interest in the said companies, which will be paid in $200,000 cash and 3,583,667 shares of Creative's common stock. The shares carry terms that will protect them from reverse splits and dilution. The $200,000 in cash will be delivered within 90 days after closing. Once $200,000 in cash is received, the FCC will deliver their membership in Kokopelli Franchise Co., LLC to complete the sale. The purchase price for each of the concepts varied due to their different stages of development with Kokopelli at the highest price of $1,301,193.

Creative's price per share last closed at $1.60 per share, and has been trading in the range of $1.05 to $1.75 in price per share. In addition, Creative has disclosed to Franchise Capital they have the funds and resources available to completely develop each of the concepts.

The sale of these concepts will allow Franchise Capital to use their resources to diversify the company's portfolio. Prior to the sale, all of Franchise Capital's resources were used to continually support and develop the four concepts. And, although they are four different concepts, each is sharing the same management team.

Franchise Capital believes it is important for its portfolio companies to be completely diversified. Franchise Capital believes this will give the company, and shareholders, a better security in their investments. As many shareholders would agree, "it is not good to have all your eggs in one basket." In addition to the instant boost in Franchise Capital's portfolio value, true diversification of portfolio companies was a key factor in the decision making process.

Franchise Capital will still have a vested interest in Kokopelli Sonoran Grill, Comstock Jakes, Cousin Vinnie's Italian Diner and Kirby Foo's Asian Grill. In addition to the four concepts, Franchise Capital will also now have a vested interest in Creative's other four concepts, Don Allio's, Fit-n-Healthy, Q's Barbecue and Pasta Pranzo. Whenever any of these concepts have a news event, it will also be a news event for Franchise Capital as well.

"This deal just makes sense," stated Edward C. Heisler, Franchise Capital Corp. president and CEO. He continued by saying, "This is a major step in running this company like a true BDC. We now have the freedom to invest in other franchise companies and I believe diversification will increase our portfolio value even more rapidly. Like many companies on the OTC, we have our eyes set on a higher exchange. Although I do not expect it to happen overnight, whatever we can do to continually increase our portfolio value is a step further in accomplishing that goal."

Ok...is this very good news...there isn't much reaction so far?


deciding whether to jump in or not?

Any advice would be greatly appreciated!

Thanks and good luck to all holders.

julia

fill-the-gap , is this good news?

From the RB board

By: rainbow898 
05 Oct 2005, 11:33 AM EDT
Msg. 7435 of 7435
(This msg. is a reply to 7425 by vishy666.)
Jump to msg. #   
As per the agreement, Creative will deliver $2,161,493 to Franchise Capital for their interest in the said companies, which will be paid in $200,000 cash and 3,583,667 shares of Creative's common stock.

The Registrant had 68,562,852 shares of common stock, $0.0001 par value, outstanding as of September 23, 2005.

http://yahoo.brand.edgar-online.com/doctrans/finSys_main.asp?formfilename=0001262463-05-000111&nad=
CEAT last traded at $1.6
http://finance.yahoo.com/q?s=CEAT.OB

which totals $5,733,876 + $200,000 cash = $5,933,876

which works out to $.086 increase per share in assets.

Last 10Q stated each share had $.012 per share in assets.

So, $.086+$.012= $.098 per share 

I hope it will take off now , but as always the market has the last word.