FCCN.OB > Is now > FCCN.PK

[AustinPowers]

Aussie-

I think that is a very good point.  The volume up right now is much MORE significant than it was on the way down.  Thank you for pointing that out.

[AustinPowers]

VIC666-

Here is some additional info. to support your post.  This was found on the franchise web site.

The fees to purchase the franchise itself are as follows:

$25k per store.  This fee is paid UP FRONT upon the signing of the franchise agreement.  (The Michigan deal alone is worth $300k)  There are a total of 65 new locations identified on the web site (this includes the 12 in Michigan) so that is $1.625 million right there in franchise sales, and growing.  Maybe some of the $25k is going toward brokers commissions that are representing FCCN to sell the franchise nationally.  It appears that they are signing some large development contracts so these multi unit sales will be key for rapid growth.

If an owner wishes to develop a market to open additional stores then there is an additional $10k fee per market plus the original $25k per store. 


6% royalty, based upon gross sales.  I think the $60,000 per store royalty projection is a bit high.  That would represent $1,000,000 in gross store sales on avg. per store in the chain.  That is a lot of volume for a store like this.  I think it is more reasonable to expect about $750,000 - $800,000 gross sales per store or about $45,000 in royalties per store per year.  I've been actively seeking a food franchise and have done some homework on this sort of investment. I just visited their competitor, Moe's Southwest Grill and it was very good food for the money.  If Kokopelli serves similar quality it should be a hit.  This franchise is a bit behind Moe's in terms of expansion so they need to play some catch up.   

You are correct in that it will take some time to open these stores.  Assume that the owners are not going to open all the stores  simultaneously.  In fact, they are probably committed to some sort of schedule that allows them to ramp up to opening the number of stores contrated for over a period of 2-3 years.  Besides, it could take 6-12 months just to locate and negotiate for a space for a store, then the buildout of about 3 months.  So the big revenue stream is at least 24 months out from here.   

Businesses like these can be very lucrative for a successful franchisor since they can develop their empire with less overhead than if they were to grow organically.  Think about it, they have purchased an existing successful restaraunt concept, Kokopelli Sonoran Grill, and have enhanced it for marketing purposes.  All this can be done with very few FCCN corporate employees and from a very small office.

Hope this helps for your current valuation.

[vic666]

excellent DD...i'm looking forward to the next several weeks and months on FCCN.

as Aussie trader also pinted out (something that I missed  in my observation), we have the chance to go up all the way to $0.69 ....it's hard to believe this fell from $0.69 to $0.11 in 6 trading days.

GLTA!

[setravis]

I will buy @ the open.I think this is a screaming buy.
I believe the next stop,rest area is $0.20
MACD Bullish,Stochastic Bullish,RSI Bull

Applaud to Mr.Ramsburgh on this job well done
******************************************************************************
Quote from AussieTrader:
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.

[stocky]

Hats off to Ramsburg. Applaudx100

[Ramsburg]

Hats off to Ramsburg. Applaudx100

Thanks guys ! 

Is good to know that this pick is making some greens all around

[stocky]

Seems to me that MM is out of stocks, and have to bring down the price to make ppl sell.

[basonista]

You will have to excuse my ignorance but I am still a newbie.    What is MM and what does it mean that they are out of stocks and bringing the price down?

...adding more to my learning experience daily!

[Ramsburg]

You will have to excuse my ignorance but I am still a newbie. What is MM and what does it mean that they are out of stocks and bringing the price down?

...adding more to my learning experience daily!

Hi

MM = Market Maker

Their job is to provide liquidity to the market in case it's necessary...

[basonista]

Thanks, Ramsburg!  So, if the MMs are out of stocks, obviously to control liquidity they need to gain control of some stock again.  How do they get the price down?  If it's a supply and demand issue, wouldn't they have to bid the prices up to find sellers? Or in their effort to bring prices down, they are getting the weaker holders to fold and sell stock?

How do the MMs determine when more liquidity is needed and why would they need to control that instead of letting the market handle it?

I think smoke is starting to come out my ears....

[setravis]

What is going on with this one today, Ramsburgh?
Cast some light on me!

[vic666]

look at the retraces in the last one week:

1.) 0.049 to 0.030 (38% retrace)

2.) 0.070 to 0.042 (40% retrace)

3.) 0.080 to 0.052 (35% retrace)

IMO, I don't see this going below 0.05. of course, the MM's will induce lots of sellers between 0.05 and 0.06, but this thing will head right back up to 10 cents very soon.

just my thoughts.

[chuparosa]

I live in Arizona, and decided to check out Kokopeli's today.  I didn't expect much, since I'm not a fan of fast food, but what a pleasant surprise.  This is an attractive, immaculate restaurant.  They even had a small misted covered eating area outside.  The staff was very friendly and explained that all the food was fresh.  They don't use frozen ingredients.  The selection is vast, and very authentic.  Not your neighborhood Taco Bell.  If this franchise doesn't take off, I would be very, very surprised.  I recommend it to one and all.  I own the stock, and will hold.

[Ramsburg]

I live in Arizona, and decided to check out Kokopeli's today.  I didn't expect much, since I'm not a fan of fast food, but what a pleasant surprise.  This is an attractive, immaculate restaurant.  They even had a small misted covered eating area outside.  The staff was very friendly and explained that all the food was fresh.  They don't use frozen ingredients.  The selection is vast, and very authentic.  Not your neighborhood Taco Bell.  If this franchise doesn't take off, I would be very, very surprised.  I recommend it to one and all.  I own the stock, and will hold.

Applaud chuparosa

I live in Europe and I can't do what you just did But I've much appreciated your feedback on the Kokopeli's !

best regards,

[Ramsburg]

Thanks, Ramsburg!  So, if the MMs are out of stocks, obviously to control liquidity they need to gain control of some stock again.  How do they get the price down?  If it's a supply and demand issue, wouldn't they have to bid the prices up to find sellers? Or in their effort to bring prices down, they are getting the weaker holders to fold and sell stock?

How do the MMs determine when more liquidity is needed and why would they need to control that instead of letting the market handle it?

I think smoke is starting to come out my ears....

To tell you the truth basonista, I don't do this kind of thinking about the MM behaviour, I just concentrate on the price movement itself...

But I guess the MM just stop providing demand, or by other words decrease it's bidding offers to lower levels, and the stock may have tendency to slide a bit... on such a big move like this one, this can incite some profit taking by nervous hands... and the MM just follow the same behaviour again... Like in every other area, there should be good MM's and bad MM's... the MM should always «test» the real demand/supply and act according to it, not forcing any price move, but just making the necessary adjustments to their positions.

I don't believe that's the case right now on FCCN... Jesus ... this stock just gave 10 bags in less then a month... Like vic666 just said, this correction till now is just like the others...

Best regards !