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FCCN

Started by David Randolph, August 02, 2005, 05:11:52 AM

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David Randolph

The first thing I did was to check if the market cap on marketwatch.com was right, and it wasn't if you take into account full dilution, as you should. So the market cap of FCCN.OB is 34,519,282*$0.071=$2,450,869.

Still we're talking about an extremely small company in market value.

The company did show a profit in the first quarter, of $0.005 per diluted share, which gives us a P/E ratio of 14.2, pretty conservative given the growth of the company. But, you see, this profit was made out of profitable private investments more than from actual revenues.

What do these guys do? «The Company  invests in  developing  and franchising  casual  dining  restaurants.»

They also say this in the latest SEC statement: «At March 31, 2005 our investment  portfolio  totaled $602,480 at fair value. Our investment objective is to achieve current income.»

On July 26th we've had these news: Franchise Capital Corporation Announces Agreement for 12 Kokopelli Franchises in S.E. Michigan Market

I would like to highlight this: «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."»

So, 12*$60,000 = $720,000 from this deal alone. Considering the 49 franchises Kokopelli has now, we can figure the company will get about $2,940,000 in revenues per year, and that's more than the current market cap of FCCN.OB.

FCCN.OB has other franchises, besides Kokopelli (this picture was taken out of the 10-Q SEC report for the first quarter of 2005, the situation has improved since then):



Considering FCCN's chart, it has a bullish trend:



Still, just $2.45M in market cap, so there's a lot of room to grow ...

I guess this stock could still rise 10 fold, doesn't matter it has risen 10 fold already. Ramsburg bought the stock near its lows and still has it, read here: FCCN.OB... My bet as the next big penny mover

Perhaps we'll buy this stock for the 3 Pennies on Fire Portfolio today !

David Randolph

We indeed bought FCCN.OB to the 3 Pennies on Fire portfolio (as was shown on the 3 Pennies on Fire homepage), @$0.070 a share. The stock pushed higher but then it sold of 16%.

Everyone knows penny stocks are risky and one must not be surprised by negative (or positive)  one day moves of this magnitude. High risk brings higher profit expectations.

But trading principles are basically the same, whatever you're trading, be it stocks, penny stocks, futures, currencies, bonds, whatever. And the most sound trading principle there is is to follow the trend.

Knowing the trend and (always) following it is a good step to long term profitability.

My strategy is to do the maximum research prior to buying a stock, and after design a simple trading plan for the sale of the stock. The trading plan should be designed to let the profits run and cut the losses short.

I see a short term ascending support on FCCN.OB, so my trading plan is to hold the stock as long as it closes above that ascending trendline, which today will be at $0.056. Nothing more to weigh or consider.


stocky

#2

David Randolph

Thanks for the info stocky, it's really a cool franchise  :)

Technically FCCN.OB hold my support line on close, but just barely. I won't take any chances with these penny plays, I know it's kind of easy to get a 50 or 100% two or three day mover, and that's also true on the downside.

I believe having a trading plan and the discipline to follow it is what will, in the end, separate the winners from the losers in the penny stock world.

So, if FCCN.OB is set to close lower on today's session I'll sell the stock, regardless of fundamentals. I hope the stock rebounds from the ascending support line, but I'm prepared for the alternative bearish scenario.

To see the actualized 3 Pennies on Fire Portfolio, click here: 3 Pennies on Fire (this link is on the lateral menu on every page of the website)

fill_the_gap

David,

The $ 60,000 per franchise is not set in stone.
And the number does not hit the balance sheet in a lump sum.
Several other factors and expenses go into each deal.

And remember, FCCN had to get majority ownership.
They partnered and have to pay for the rights.

The stock may rise with Momentum short term.

It is going to be a long time for the revenues to come.
And you also have to consider how the other companies are doing.

Low float hype right now, IMO.  Everyone will try to exit at once.
Hopefully, you all can make some money near term before it happens.

Best of luck.
Just one opinion, do the research

Ramsburg

Frederick Ramsburg
www.3stocksonfire.org

Try our Premium Service or just Register a FREE Account

Loffigus

Franchise Capital Corporation Announces Agreement for Five Kokopelli Franchises in the Greater Portland Market

This latest news is positive.  I live in Portland Oregon, and this type of restaurant will be very popular here.  We have a shortage of good mexican style food, and the ones that are good do extremely well. 

stocky

In California, I have seen Mexican Resturants/fast food, doing very good business. If and ever, FCCN sets its footing here, they will find eager hands and hungry mouths. I'll be waiting  ;)


yuyjust

Quote from: stocky on August 03, 2005, 11:10:40 AM
In California, I have seen Mexican Resturants/fast food, doing very good business. If and ever, FCCN sets its footing here, they will find eager hands and hungry mouths. I'll be waiting  ;)



Can't agree more on that one. I personally live in Central California and actually work near a couple of Mexican restuarants in the area, every lunch they alway jam pack... and on weekend they have a really good crown going on week in and week out so can't wait to see if FCCN will get some share of CA market in the coming month.. They will do real well... Fresh ingredient comparible to those higher price Mexican restuarant but with much more affordable price.. I'm sure will be their customer.

Gurukul

FCCN has horizontal support at 0.05. Most probably David will sell but I am holding mine after all I am already a bag holder.

David Randolph

I've sold FCCN.OB yesterday by the close @$0.056. You know me, following a previously made trading plan is very important.

Good luck for those who will continue to hold the stock.

basonista

This out today. ;D

Franchise Capital Corporation Announces That Comstock Jake's Will Open Its First Location on November 1st
Monday August 15, 8:30 am ET


SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 15, 2005--Franchise Capital Corporation (OTCBB:FCCN - News) announced today that its portfolio company, Comstock Jake's Franchise Company, intends to open its first Comstock Jake's location on Tuesday November 1st, 2005. The location will be located at the east side of Mesa, Arizona. Once open, Comstock Jake's will move quickly to start selling franchises.
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Comstock Jake's is in the tradition of an 1800's mining town roadhouse, where miners would come to get a good meal after they cashed in their nuggets of gold or silver. Comstock Jake's has good, simple, reasonably-priced food in a comfortable, down-home environment.

The look is rustic, with a lot of "old" wood and some "rusty" steel in the decor. There is a rustic wooden bar in one section; some of the tables have old wooden benches. Some booths are along one wall for intimate dinners with the ladies. The decor includes sepia pictures of miners and the old west, and just a few artifacts, such as a pick, panning pans, floppy hat, etc., hang on the walls in strategic places. The interior signage will be made of painted wood fence boards.

The staff is decked out in blue jeans, Henley-collared shirts, and suspenders. The menu is printed on newsprint with one side being the town news of the week. Food is served on plain plates, with "tin" or "cast iron" side items, such as a "bucket" of fries, or "pot" of soup, or "skillet" of bread.

The food is comfortable and will carry theme related names such as Prickly Pear Steak, Jake's Meatloaf, Kettle Pot Roast, Chicken Under a Brick, and Pasties served with a rich sage scented gravy. The menu will also carry soups and salads, such as the Miner's Caesar salad and the Canteen bean soup. Those looking for chili will have three choices from "Trail" to "Mountain" to the spicy hot "Rattlesnake" chili. The menu will also carry an assortment of sandwiches and fish like the River Catfish.

Franchise Capital Corporation President and CEO stated, "We are all very excited about the launch of Comstock Jake's. We feel we have another very successful franchising concept in the works. It is anticipated that each location will generate $1.2 to $1.4 million per year in annual sales. Comstock's current goal is to have 30 to 40 units sold and four additional units open prior to the end of 2006." Mr. Heisler continued by saying, "Frank Holdraker will be at the lead of launching Comstock Jake's. I feel confident his leadership and experience will lead to many profitable years for Comstock Jake's."

About Franchise Capital Corporation:

Franchise Capital Corporation is a Business Development Company pursuant to Section 54 of the Investment Company Act of 1940. The company currently has five operating, synergistic investments holdings: Kokopelli's Mexican Grill Franchise Company, LLC; Cousin Vinnie's Franchise Company, LLC; Kirby Foo's Asian Grill Franchise Company, LLC; Comstock Jake's Franchise Company, LLC; and Fathom Business Systems, Inc., all of which are engaged in business related to restaurant franchise development.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2004 filed with the Securities and Exchange Commission.



--------------------------------------------------------------------------------
Contact:
     Gemini Financial Communications
     A. Beyer, 951-587-8072



--------------------------------------------------------------------------------
Source: Franchise Capital Corporation

evgeny05

Franchise Capital Corp. Sells Its Interest in Fit-n-Healthy Market Cafe
Aug 18, 2005 8:30:00 AM
Copyright Business Wire 2005
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 18, 2005--

Franchise Capital Corp. (OTCBB:FCCN) announced today that its board of directors, with the recommendation of the Investment Committee, voted to sell its interest in Fit-n-Healthy Market Cafe. The concept, which was created earlier this year, and in its early stages of development, was sold to Creative Eateries Corp. (OTCBB:CEAT) in the amount of the concept's current liabilities.

Franchise Capital Corp. President & CEO Edward C. Heisler stated, "The sale of Fit-n-Healthy Market Cafe is clearly a win-win for both Franchise Capital and Creative Eateries corporations. For Creative Eateries Corp., this is a great concept for them to grow and develop. Franchise Capital may consider reinvesting in this concept further down the road." Heisler continued by saying, "For Franchise Capital Corp., the sale of Fit-n-Healthy Market Cafe helps the company in its effort to not only relieve it of its liabilities, but in this case the company even made a small profit. It also allows us to focus more on our other four concepts which we believe is more important at this stage for Franchise Capital Corp."

About Franchise Capital Corp.

Franchise Capital Corp. is a business development company pursuant to Section 54 of the Investment Company Act of 1940. The company currently has five operating, synergistic investments holdings: Kokopelli's Mexican Grill Franchise Co., LLC; Cousin Vinnie's Franchise Co., LLC; Kirby Foo's Asian Grill Franchise Co., LLC; Comstock Jake's Franchise Co., LLC; and Fathom Business Systems Inc., all of which are engaged in business related to restaurant franchise development.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2004 filed with the Securities and Exchange Commission.

Source: Franchise Capital Corp.





Creative Eateries Corp. Acquires Fit-n-Healthy Market Cafe
Aug 18, 2005 8:30:00 AM
Copyright Business Wire 2005
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 18, 2005--

Creative Eateries Corp. (OTCBB: CEAT) is pleased to announce they have acquired Fit-n-Healthy Market Cafe. Creative Eateries acquired the concept in a purchase agreement with Franchise Capital Corp. (OTCBB: FCCN). This acquisition, in addition to Q's House of Barbecue, gives Creative Eateries not only another new exciting fast-casual dining concept, but one with the twist of food retail.

Fit-n-Healthy Market Cafe is more than just a place to get a great-tasting, nutritious meal that fits into a healthy lifestyle. Each Fit-n-Healthy Market Cafe combines a quick-serve restaurant with a convenience-style retail store that carries the best health-oriented consumable products available for purchase.

For years, restaurants have tried to figure out ways to sell customers more than just a meal, and some national chains have been successful. When executed properly, the retail business provides significant economic benefits including raising the value of a customer's visit, optimizing labor usage, smoothing peak sales times, and allocating rent across multiple businesses. Fit-n-Healthy Market Cafe is extending the restaurant-retail concept and creating the archetype for maximizing sales in the restaurant industry.

The contribution of retail sales to the total volume of a Fit-n-Healthy Market Cafe unit will outpace even that of the most successful 2-in-1 chains. The reason behind this difference is the truly symbiotic relationship that exists between the restaurant and the retail side of a Fit-n-Healthy Market Cafe. The restaurant drives masses of people to a retail category starved for traffic. The retail store authenticates the healthy claims made in the restaurant. With shelves full of protein powder, vitamins, healthy snacks, and natural-organic food items, customers know that all of the Fit-n-Healthy Market Cafe menu items are healthy as well.

In addition to the benefits mentioned above, the "One-Stop Healthy" concept drives profits. Fit-n-Healthy Market Cafe unit sales will far outpace typical quick-serve restaurant volumes. Combining that with the ultra-high margin category of nutritional products yields a business case that is hard to beat.

"I feel Creative Eateries has just acquired an innovative concept in the health food industry," stated Frank Holdraker, president and CEO of Creative Eateries Corp. He continued by saying, "Our goal is to have the first Fit-n-Healthy Market Cafe open in the second quarter of 2006 and over 20 units sold within the year following. Each unit is estimated to generate $850,000 in annual revenue."

About Creative Eateries Corp.

Creative Eateries Corp. is a franchise development company that targets emerging and undervalued franchise concepts. The company is introducing a line of new restaurant brands that fall into the broad category of "fast-casual" dining. Creative Eateries Corp. will provide the necessary elements to grow these brands by partnering with the existing restaurant companies, thereby owning equity directly in these brands and by providing the concepts a total Franchise Turnkey Program. This formula is the result of several years of development to provide the tools and support needed to create and sustain a successful restaurant franchise with above average per store returns.

Creative Eateries is listed on the NASDAQ Electronic Bulletin Board under the trading symbol CEAT.

Look for our Web site at www.creativeeateries.com.

For further investment information please call Gary Reid at 866-475-7539.

Special Note Regarding Forward-Looking Statements

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this news release that are not strictly historical statements, including without limitation management's plans and objectives for future operations and management's assessment of market factors, and statements regarding the strategy and plans of the company and its strategic partners, constitute forward-looking statements. These forward-looking statements are not guarantees of the company's future performance and are subject to a number of risks and uncertainties, such as our success in acquiring new concepts, funding these acquisitions, and successfully adapting and franchising these concepts, and could cause the company's actual results in the future materially to differ from the forward-looking statements.

Source: Creative Eateries Corp.





fill_the_gap

I called and spoke with Management.  They have sold 73 so far.
And people have to buy a MINIMUM of 5 Kokopelli's !
Now they get near double the fee and 6% of Revenue per Franchise.

Huge News For the Valuation.

Easy Buy.   ;D

Press Release Source: Franchise Capital Corporation


Franchise Capital Corporation Increases its Investment in Kokopelli Franchise Company to 90%
Tuesday August 30, 8:30 am ET


SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 30, 2005--Franchise Capital Corporation (OTCBB:FCCN - News) is very pleased to announce they have increased their holdings in Kokopelli Franchise Company, LLC (Kokopelli) by 40%. Franchise Capital Corporation now holds a total of 90% of Kokopelli.
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In April of this year the Board of Directors voted to increase its holdings in Kokopelli through an offer of $250,000 to the other 50% holder of Kokopelli. Contingent upon the closing Franchise Capital sold 10% of their holdings to a franchisee in Phoenix for $50,000 which in turn was used as the down payment. As per the sales agreement the remaining $200,000 will be paid quarterly over three years.

Edward C. Heisler, Franchise Capital Corporation President and CEO stated, "Over the past few months we have worked very hard to complete this goal. Increasing our holdings in Kokopelli is a huge accomplishment for Franchise Capital and its shareholders. Kokopelli is already the most valuable company in our portfolio. It's awesome that we have increased those holdings to 90%. At the current rate of franchise sales I feel confident our portfolio will only continue to grow in value."

About Franchise Capital Corporation:

Franchise Capital Corporation is a Business Development Company pursuant to Section 54 of the Investment Company Act of 1940. The company currently has five operating, synergistic investments holdings: Kokopelli's Mexican Grill Franchise Company, LLC; Cousin Vinnie's Franchise Company, LLC; Kirby Foo's Asian Grill Franchise Company, LLC; Comstock Jake's Franchise Company, LLC; and Fathom Business Systems, Inc., all of which are engaged in business related to restaurant franchise development.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2004 filed with the Securities and Exchange Commission.



--------------------------------------------------------------------------------
Contact:
     Franchise Capital Corporation
     Gary Reid, 866-475-7539



--------------------------------------------------------------------------------
Source: Franchise Capital Corporation


Just one opinion, do the research

fill_the_gap

#14
Now 90 % owners * 73 units sold and 6% revenue 1.5 % Advertising, etc. Franchise Fee forever.  And the investors finance all expenses. Cash cow.

Should immediately place the valuation much higher than 40%.
Just one opinion, do the research