No Rave During A Pandemic
Argaia Capital
344 Followers
Summary
- The restaurant industry has been hit hard by the pandemic.
- Pizza restaurants are weathering the storm.
- However, Pizza Inn and Pie Five Pizza will likely not have the same success of other pizza restaurants.
While the pizza industry has weathered the storm, Rave Restaurant Group (NASDAQ:RAVE) has not. Despite being in the pizza business, their focus on dine-in and fast casual will prove detrimental for Rave Restaurant Group. We believe Rave Restaurant is a sell.
Where we stand in the restaurant industry
With the loosening of social distancing across multiple states in mid-May and early June, there will be a large focus on the restaurant industry. As one of the hardest hit sectors due to the closure of dining rooms and being mandated to provide meals through takeout, delivery or drive-through, it remains to be seen if a full recovery will occur.
Since China was the first country to be hit in the current pandemic, they will provide the best clues as to how we can anticipate what is in store for this industry. According to South China Morning Post, this is what we can anticipate when restrictions are lifted and dining rooms can reopen:
- Increased spacing between seating, thus lowering the capacity of dine-in patrons.
- Screening of patrons as they enter the restaurant.
- Low demand for dine-in restaurants as they continue to struggle to overcome health risks.
For these reasons, anyone wanting to invest in the restaurant space needs to analyze the data to see what type of restaurants will do well in the current environment. This is because the data from China tells us we are not going back to the way things were. The restaurants that are winners in the current environment will continue to outperform until consumers have confidence they won’t contract the virus going outside.
Pizza is king
Next time you are feeling cabin fever and you need a walk to get some fresh air during this pandemic, take a look at the recycling bins of your neighbors as you walk by. Don’t be surprised if you see an overflow of folded pizza boxes.
As seen in the graphic, compared to quick service (think McDonald's (MCD), Taco Bell (YUM)) and fast casual (think Chipotle (CMG), Panera), pizza restaurants outperform in terms of size and number of transactions. We believe this trend is occurring for the following reasons:
- Pizza is a cheap option to feed a family as we experience high unemployment.
- The pizza industry has always been catered towards delivery and pickup, thus avoiding any growing pains to transform their business model.
- Single-person transactions such as picking up coffee or lunch on the way to work are happening less frequently.
However, not all pizza restaurants are the same. There are two types of pizza restaurants:
- Traditional: Provide your order in advance
- Fast Casual: Tailor your customization in real time with an artisan
- MOD Pizza
- Blaze Pizza
Narrowing into specific companies, we can see that the traditional pizza chains are vastly outperforming the fast casual pizza chains. This is expected, given that person-to-person contact is discouraged, which is needed for fast casual pizza restaurants.
Where do Pizza Inn and Pie Five Pizza fit in?
Pizza Inn and Pie Five Pizza are absent from the data above. We will be diving into Rave Restaurant Group to see if they will be able to weather the pandemic like their peers. At face value, the industry trends don’t favor them, considering Pizza Inn is dine-in and Pie Five Pizza is fast casual.
Same store comps and sales mix
Pie Five has been having trouble over the past two years, and we see this trend continuing to drift lower and lower. Especially since the format of their business is similar to MOD Pizza and Blaze Pizza. We anticipate Pie Five to have a decrease of 56-63% in sales based on the change seen from their peers.
Pizza Inn same store sales, which have been hovering around 2%, have been relatively stable. However, if restaurants reopen with 25% capacity like they did in Texas, this would severely impact their buffet business. More so, if consumers are fearful that germs are easily spread in a buffet setting.
They also operate Pizza Express, which are the small kiosks inside universities and airports. We anticipate Pizza Express sales to be near zero, considering that people will take on more caution when eating on the go and commercial areas face lighter traffic.
Their sole bright spot is their delivery and carry out business. Recently, they announced that online sales have increased by over 17%.
Based on the above, we anticipate overall sales to drop 60%.
Corporate liquidity
With the grim outlook for sales, we need to assess the company’s ability to weather the pandemic. Since the food industry is a low-margin business, it is very sensitive to shocks in sales. These shocks can severely impact the liquidity of a company. By adjusting the Q4 results for the above sales analysis, EBITDA drops by nearly half.
It is important to point out that long-term liabilities are mainly comprised of two items. The first being their lease obligations, which are approximately $650K per year. The second being their convertible debt at $1.5M. This could be an issue as current shareholders may face dilution if they convert. At the end of 2019, working capital was $1.8M. Thus, they should be able to be solvent in the near term. However, if the effects of the pandemic continue to stretch on, Rave could begin to face liquidity issues.
The bull case
While we believe Rave Restaurant Group is a sell, there are risks to our thesis.
- Their recent contactless buffet-to-go promotion continues to increase conversions to the delivery model.
- A vaccine/treatment is developed and everything goes back to normal.
- A rising tide lifts all boats - as the economy reopens, all restaurant stocks may experience a rally.
- The company is currently not compliant with NASDAQ’s requirements to trade above $1. The delisting risk is likely priced into the stock and may have a short-term rally if the company provides corporate actions such as a reverse stock split.
Overall
While pizza seems to be the only restaurant industry that is remaining strong, Rave Restaurant Group is not one of the pizza companies capitalizing on this. With their focus on dine-in and fast casual pizza, this company does not seem like it will weather the pandemic. Papa John's and Domino's Pizza will be safer plays than Rave in the pizza industry.
This article was written by
344 Followers
As a CPA in training, I filter through the world looking for investment opportunities and financial information to deliver alpha returns. My investment goal is to accumulate enough money for an early retirement where the investment income after tax is sufficient to meet my standard of living. My personal goal is to donate $1,000,000 to charity in my life time by giving 50 percent of my proceeds from articles to work towards this goal.
Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Comments (187)
Rave announces:
new Impossible Tuscan Pizza,
and unlimited stuffed crust pizza.
new Impossible Tuscan Pizza,
and unlimited stuffed crust pizza.
@JTrader_25 Very interestign on the meatballs. That sounds almost prophetic, being meatballs and all. :) Would be funny if that were Mancini.So, I'm guessing Impossible meatballs means the partnership alluded to in the last 10Q is Impossible Foods:https://impossiblefoods.com/Targeting vegans is smart, but alienating them with their anti-politics is not. Even though their intent was to brand Pizza Inn as the traitors, Vegans are a little smarter and do research. But, that's okay. I'm hoping we can have a case of amnesia there. I see no evil; i hear no evil! :) Not as exciting as I was hoping for, but I'm exciting about my 16,000 shares here. 8,000 of which have a $2.50 price ceiling. I guess that's what they meant by a healthy partnership. I'm not knocking it, but I have nothing against meat. Meat is healthy. I'm all for real meat. I long for the days for Star Trek technology when atoms can just be made into whatever we want. Real meat, real metal, whatever. I think it draws from transport technology. Or did transport technology draw on their unique food on demand technology? I don't know. What came first? Not there yet regardless...Impossible Foods did a partnership with Burger King and Little Caesar's pizza two years ago. They can definitely handle us I suppose. They have some interesting venture capital behind them. Such as Google, Bill Gates, some Hong Kong billioniare, etc.
@Racer-X Not sure if vegans eat cheese. I see this a marketing pitch to get people in the door to try something new. I would rather see an announcement that the franchise team has signed agreements for new store development. That is what really counts. We are not seeing this, but Marcos Pizza is.
@JTrader_25 They might have a vegan cheese. Their front page on the Pie5 website seems to imply it, but I can't be certain because they include it with tomatoes and arugula. So, where does the Impossible trademark end on that list? I'm not sure. I'm pretty certain Mod 5 does because I work with a Vegan fanatic in my second industry sometimes and he has an objection to every objection. So premadonna... I mean, I love some of the Vegan choices. I'd go for them. They can be so great. And they are on every event. Some person(s) in every crowd is a Vegan it seems.. But, it would be too much work to be a Vegan 24/7. If a vegetarian and not a pescetarian, it's just much simpler to make it a gluten free vegan dish. Just knock out most all potential objections in one sweep. Keep it simple! Anyway, RAVE just made some more elaborating statements a few hours ago here. Very interesting:www.pizzamarketplace.com/...EXCERPTS:1. In fact, the brand said customer response has been so favorable to the Impossible meatballs, it is replacing its current meatball topping with the Impossible meatballs.MY COMMENT: I hope that's a true statement. I hope I can trust that statement. It sounds good. Who doesn't like meatballs?2. "Consumer demand for Stuffed Crust pizza continues to be high, with a large pizza player attributing its recent success with their product launch," MY COMMENT: I think I've seen those commercials. Was it Little Caesars? Somebody for sure. I know I see it advertised often...
We took a thrashing this week in a Youtube video:www.youtube.com/...It's all negative. Like a Kelly Stewart article. Not one of our bullish perspectives addressed in it. Not a single one. A lot of focus on a security breach at end, which has none of the implied weight they give it. But, interesting. I'm glad that's the perception out there. I'd be more worried if it was all positive. Then I'd have some doubts creep in about my price.And absolutely no mention about the marketing fiasco this year. The PR initiative, making us traitors to our country. And hopefully, we learned something from that. I hope...
@Racer-X The trashing is fair, that is why this was a penny stock not too long ago. Having closed so many P5 stores does not bode well for the future of P5 with only 30 or so left. Not sure who would invest in a P5 franchise. You buy RAVE as it is so cheap you hope for a quick run up on good news. The good news is they were profitable and without the cost of operating company stores there may be more good news coming and that BS and his team can turn things around. This is a speculative play. The pandemic has hurt all restaurants, maybe RAVE can re bound. While watching this I got to watch a you tube Pizza Hut ad. I recall a Pizza Inn quick serve shop in DFW years ago that if I did not read the sign I would have thought it was a Pizza Hut. If Domino's can rise from the dead and thrive so can RAVE, it is all about management and marketing. I am not hearing much about the team that was hired to fuel growth.
@JTrader_25 Yeah, I think it's fair. A good flogging is needed. But I still think they are out of touch and were not balanced. Everybody has value. They don't mention anything about new mgmt. They just act like Pie 5 doesn't get it and is walking around oblivious. It's a certain Kelly arrogance to it. Like a high school project from someone that was rushed and/or has nothing to learn.They don't mention that they stopped the bleeding. They don't mention that while they might kicked off Nasdaq, that they took some big steps that put them into compliance. Neglected the cash-rich balance sheet and new products in innovation. Or that small does have an advantage to being nimble. That it takes crisis to invoke change. There is an underdog story here that didn't get told. Which it makes all the more underdog I guess.
Q3 is out. This is sooo interesting: "Lastly, in Q3 we selected Pepsi Cola as Pizza Inn's exclusive soft drink supplier and will be transitioning from Coke in the coming months."Reminds me of the Cola wars. I haven't paid attention to that in years. I remember that being one of Pepsi's strategies: To buy companies to make them sell only their product. I wonder how this came about. A negotiated cost benefit for RAVE? I could care less one way or another. I drink coffee. The only time I ever cared was when I was a young child. And even then, it owuld have been the Dr. Pepper or a orange drink -- not the two giants -- as my preferred choice. Go with the brand that PAYS. Dump the one that doesn't. It's a commodity. I want to take a blind taste test. I want to take the Pespsi challenge. I feel like I'll fail miserably -- unable to accurately predict which is which with repeated results. Just like with wine or anything else. My palate is just not that sophisticated.And I wonder who the mystery brand is here:""This month we expect to introduce a differentiated pizza innovation with strong freshness/better-for-you cues, becoming the first among major fast-casual pizza brands to do so. We have partnered with a well-known brand in a growing segment of the food service industry for this upcoming launch."I love surprises. I'm also happy to see a sales decrease. There should be some punishment for that deplorable behavior of cooperating with an insurrection. I'm still ashamed and angry about that. But I'm here to make money. I don't like people! I like money! People are fickle. Cash is king! Revenge by cash!
@Racer-X What the heck. Hit me with 8,000 more shares:05/06/21 09:30AM EDT Buy 1316 RAVE Executed @ $1.3 05/06/21 09:30AM EDT Buy 6684 RAVE Executed @ $1.3The first 8,000 have a $2.5 price ceiling on my head for a few months.16,000 shares total. Margin creeping back up. Tax deductible Margin dept up to $46,000 now. Lots of wiggle room left. Lots of firepower reduced due to commitments of secured puts, which was cash is coffers.
@Racer-X I have just confirmed a catering event in October. Last week, I confirmed one for September. This is looking great. This makes me think good things ahead for the restaurant industry. People are planning far out in advance again...I'm hoping to be booked solid in December, the gravy train, by Summer.
MORE RAVE DURING A PANDEMICBuy 8000 RAVE Executed @ $1.83Mar 17, 2021 2:43 PM ET
Sell 80 RAVE Oct 15 '21 $2.50 Call Executed @ $0.76Well, #$@5! I kick myself for my temper at .87. But it was a terrible call on Salano's part. I did a buy-write today to help fix my mistake. Price ceiling on my head of $2.50 until October.That's essentially buying 8,000 shares for $1.07. I'll only get $20,000 if it closes above $2.50 in October. Maximum profit potential of $11.440. They probably won't be deslisted now that the price has been over $1.00 so long.Meanwhile, NROM gets unnoticed. At least I'm in at $1.07 again here. $1,600 over original cost. That's a $1,600 fine and a price ceiling. Which I should charge to Pizza Inn. In fact, I'm submit a payment request now. I blame it on Brandon Solano. He can pay the fine. Or, he should! For helping to incite an insurrecxtion, I think that's much less harsh penalty than the criminal charges coming Trump's way in Georgia.So now my hands are tied till October. But IFFFF it does go down to .87 again, I will buy *another* 8,000 shares that won't be restricted in any way. At least this way, the boat hasn't left dock without me. It just put me in shackles and a price ceiling. I've been demoted from the mess hall to the lower deck where the slaves are kept in chains. But I'll never sign a confession letter. I'll never salute the Confederacy. But I will rise up with a potential mutiny, and I will be more than happy to take Confederate gold.
Sell 80 RAVE Oct 15 '21 $2.50 Call Executed @ $0.76Well, #$@5! I kick myself for my temper at .87. But it was a terrible call on Salano's part. I did a buy-write today to help fix my mistake. Price ceiling on my head of $2.50 until October.That's essentially buying 8,000 shares for $1.07. I'll only get $20,000 if it closes above $2.50 in October. Maximum profit potential of $11.440. They probably won't be deslisted now that the price has been over $1.00 so long.Meanwhile, NROM gets unnoticed. At least I'm in at $1.07 again here. $1,600 over original cost. That's a $1,600 fine and a price ceiling. Which I should charge to Pizza Inn. In fact, I'm submit a payment request now. I blame it on Brandon Solano. He can pay the fine. Or, he should! For helping to incite an insurrecxtion, I think that's much less harsh penalty than the criminal charges coming Trump's way in Georgia.So now my hands are tied till October. But IFFFF it does go down to .87 again, I will buy *another* 8,000 shares that won't be restricted in any way. At least this way, the boat hasn't left dock without me. It just put me in shackles and a price ceiling. I've been demoted from the mess hall to the lower deck where the slaves are kept in chains. But I'll never sign a confession letter. I'll never salute the Confederacy. But I will rise up with a potential mutiny, and I will be more than happy to take Confederate gold.
@Racer-X Good luck, maybe I should have held my 20K low basis shares but the fast money made has been redeployed. I am not sure if this goes back to $1.00 anytime soon, but you never know. I am not sure what has changed. I had GTIM at $1.11 and sold it for a nice gain, now it is $4.24. We make more mistakes selling sometimes for sure. GNOG is starting to move higher now that the warrant redemption period has expired. Got in SABRE at $11.33.
@JTrader_25 Never know. Pizza at least does good in a pandemic or not. I just now got my first vaccine shot of Pfizer. No pains or side effects yet. I haven't had a shot in 40 years. At least. I didn't feel that needle. It may be up on vaccine rollouts. Then again, that doesn't explain NROM's persecution. This is going to by my counter-measure to NROM. One day, if this goes to $5, somebody is going to have to say, why NROM 40 cents and RAVE is 5? So, this is my insurance policy too. And ransom letter! :)
@Racer-X I got both Pfizer shots. I will stay will NROM. With RAVE keep your eye on the $2.50 strike. With RAVE I see no sign of an expansion and P5 seems to be going nowhere. I would like it again at $.98.
I do like this excerpt from today's PR:"In Q2 at Pie Five we tested a new pricing strategy and product innovation called Panzano pan pizza. Test stores outperformed the rest of the Pie Five system by double digit percentages in increased traffic and sales. Panzano pan pizza is something most other fast-causal pizza players are hard-pressed to duplicate due to our oven technology...""If that's a true story and really hard to duplicated, that's a really good thing. I really, really hate Brandon's politics. Very repulsive. And the stock should be punished to 50 cents. I really want this stock at 50 cents. No offense, longs.
@Racer-X They made a profit last quarter and that is really good. For now it looks like they will survive this. Who cares about politics and marketing gimmicks, it all about the bottom line. This may be worth accumulating again on pullbacks.I like SABR on pullbacks, slam dunk 2 or 3 bagger post pandemic. Maybe better than airlines, hotels, movie theaters.
@JTrader_25 I do like the look of SABR a lot on the surface. I like their very broad mission statements too. Makes them very adaptable. Unlike Polaroid. :)I could do a nice buy-write on that one for the July '21 $20 strike. Just to lower cost a bit with a potential instant grat. I'll have to look into this one more. I like that beaten down industry.Yes, I'll jump back into RAVE ifffff it comes down to .80 again. I don't know why it's getting more attention than NROM and higher valuations. Not fair! But truth is going to prevail one day.
@Racer-X They pick up the reservations from everywhere. They are one of three companies that control the market worldwide. Partnership with Google is interesting.
It looks like a lot of companies are speaking out against Brandon's coup d' etat:"“We have taken the destructive events at the Capitol to undermine a legitimate and fair election into consideration and will be pausing political giving from our Political Action Committee to those who voted against certification of the election,” a Marriott spokesperson said......Separately, high-profile names Bank of America Ford Motor and AT&T all told Popular Information that they would take recent events into consideration before making future donations. CVS Health Corp. Exxon Mobil , FedEx and Target said they’re reviewing their policies."Source: www.msn.com/...Can we have some common sense boycotts against all companies associated with Brandon too? Don't limit it to just Ted Cruz and his ilk. They are the leaders of the coup, but Brandon was part of it. He's just as guilty for stoking the hatred. All in the name of business. Shameful. And distasteful, immoral, and disgusting. The list is long... Brandon should resign with Ted Cruz. Problem is, they want to hold on to power. Apologies mean nothing at this point. Texas will turn Blue. Not a matter of iff, only when. Then the politics of the country will change forever. And leave Pizza Inn behind. OR, the GOP will adapt to fit the new Texas politics. It's been coming. They can't afford to lose Texas. They must adapt. Or perish. Brandon's way is the wrong way.
I just found this, @JTrader_25 while looking for any recent news on Edible Arrangements:www.youtube.com/...Seems like Steven Colbert put them on his show. Now, this is the kind of politics I like! Brandon should look to Steven Colbert for input on how to market a product. Edible Arrangements doesn't even have to take the rap for being politcally incorrect with the Empire.
That is good, I recently sent edibles to someone and it came with RMCF chocolate. Very well received. This will blow over for RAVE, lets see what earnings are next in next report, for now I am on the sidelines.
@JTrader_25 I actually forgot that I do have 100 shares of rave. I have a tiny Merrill edge account. Only has $6500 in it or so. Grown from $4500. Really hard to get a tiny snowball growing. It was originally a holding account for something thst didn’t happen. I bought rave with some dividends. Merrill let’s me do nothing. No margin. No options. Can’t even buy stocks under 5 for most part. But for some reason rave wasn’t considered a penny stock. I can’t buy nrom with it. That’s forbidden. But I was able to buy rave. It’s just a tiny acct that’s no fun. I just gave my hands tied. Unlike etrade that lets me do almost anything I want. Naked puts. Anything. Except recently disallowed stocks with skull and crossbones on grey market. That makes me mad too. A demotion. I should transfer everything from Merrill edge to robinhood in protest. Same way I sold rave in protest. I think I will. I just don’t feel like messing with it yet. But the point being is that I think it’s interesting that rave is okay to buy. Not considered a penny stock somehow at Merrill edge. Interesting is all.
The Dallas Observer is roasting Solano today too:www.dallasobserver.com/...And rightly so. Our Mayor in Houston is roasting Ted Cruz with Jimmy Kimmel, so believe me when I say we are not all idiots in Texas! Ted Cruz does not represent me. Nor does Brandon Salano. I voted for BETO. And now I vote for Brandon's removal. I refuse to step foot in any of RAVE's restaurants, ever. Until Brandon is removed from office. He has alienated me and the truth.______________________"Solano says pursuing election reform is not suppression, “It's democracy in action.” This might be true, but it begs the question of whether what he's calling for is reform or suppression. Reform is generally used for things that are broken. Making voting more onerous because you don't like the outcome is that other thing.Nowhere in the release are there verified examples of election fraud following what Christopher Krebs, director of the Cybersecurity and Infrastructure Security Agency, described as the most secure election in U.S. history until President Donald Trump sacked him last month because Krebs said that. More than 30 court cases alleging voter fraud in the 2020 general election have been tossed out of court, some with scathing rebukes from judges due to a lack of evidence, including the highest court in the country, where the majority of judges who were seated by Republican presidents. Just this week FoxNews reported, “Evidence of any widespread voter fraud that could have changed the outcome of the election, however, has been lacking.”Pizza Inn’s parent company is RAVE Restaurant Group, which also owns Pie Five Pizza, operates 250 restaurants around the world, several of which are in Dallas County._____________________________________I'm glad this article does not separate Pie 5 from Pizza INN as Brandon has tried to do. This is the same mgmt. Same culture. I can't trust their judgment.I urge franchisees to step up and speak out if you disagree. DO NOT FOLLOW BAD ORDERS. Bad orders start at the top. Pizza should be about fun, unity, and family. Not division. Nobody but fanatics want political pizza. This is cloaked in Trump's rhetoric. Not fun. Divisive. And lies.Georgia turning blue was the first step towards a reformed South. Brandon does not represent the views of all the South. The confederate flag was NEVER my flag. I endorse the tearing down of all confederate statures. Losers! Those are not my people.Trump is the enemy of the people. Not China. Not globalism. Not mixed markets. Trump is a farce. Just as there is no such thing as a true free market, there is no such thing as widespread voter fraud.
More Negative Coverage:www.prnewsonline.com/...Some Excerpts: 1. In a bad case of not staying in your lane, the pizza chain's release offers suggestions about how to restore trust in the electoral system. Though Pizza Inn claims its suggestions are "non-partisan," some of them seem similar to Republican talking points. Several were heard during today's abbreviated joint session of Congress. This press release was the opinion of a small, privately held firm, right? Wrong.2. The next sentence is more questionable: “We're experts at making amazing pizza and salads (that is, when governors and other elected officials aren't shutting down our dining rooms).” Nice dig there, eh?3. Making those suggestions was a mistake, says Inspire PR Group founder Hinda Mitchell, who advises many food industry players. "I always counsel clients to...avoid pretending expertise without the corresponding experience,” she says.4. Jonathan Maze, the veteran editor-in-chief of Restaurant Business Magazine, alerted his 12,000 Twitter followers. His tweet was unambiguous. "This is quite possibly the stupidest press release I have ever seen. And I've seen a few. "5. Mitchell says, "My only hope is that [Pizza Inn] has a boatload of consumer data that says their current customer base is aligned entirely behind this message." In the end, though, Mitchell is incredulous. "It’s difficult to imagine a scenario in which a PR professional would advise a client or company to issue a release like this," she says. Her objection is not political, but concerns business. "There's a real risk in taking a position that 6 out of 10 Americans do not agree with," she says, citing a December 2020 NPR/PBS/Marist poll.----------------------------------------------------Pizza Inn won't comment. They blast a trumpet and then run and hide. Trump loves to comment. Brandon should make a comment. Like an apology. A sign of strength and character. Something our President doesn't understand. It's better to be right that it is to be "not wrong." Don't double down on idiocy. That's about the only thing our President, who shows no interest in the job he claims he wants to keep, is good at.
Oh my gosh. And it gets worse:www.vice.com/...At least this one is hilarious. I'm still, however, very challenged to find anyone that is defending Pizza Inn's PR. Is there anyone out there that finds comfort in this PR?Some funny excerpts here:1. The last time Pizza Inn pushed out a press release, it was to announce that it had brought back a contactless, customizable buffet-to-go, a decision that it said was based on "popular demand." We have no idea how many people reached out to "demand" the return of the New Right Way Buffet, but we're reasonably confident that literally no one asked to hear Pizza Inn's thoughts about last November's Presidential election.2. OK, for starters, "most" Americans are not "alarmed by" the election system, because "most Americans" voted for Joe Biden—who won by more than 7 million votes and almost 4.5 percentage points. Despite the fact that President Trump and his associates filed 62 state and federal lawsuits in an attempt to overturn the results, they failed 61 times. 3. The entire release reads like FOX News fan-fic, right down to the references to being a "patriotic American company," the unnecessary dig against state governors and health officials...4. Sorry, Pizza Inn, but even a "bold stand" doesn't count as evidence. As of this writing, Pizza Inn's tweets about the election are still on its timeline—as are its two MAGA thirst-traps, where it tagged the President, almost two dozen Republican senators, assorted FOX News hosts, and, uh, George Papadopoulis. ------------------------------------Yeah, I noticed those hash tags. I also noticed that nobody responded to Pizza Inn. Like typical dictators, they just used you, Brandon. YOu are just a tool. And a fool! Pizzza Inn is still refusing to comment on their invitation for controversy. They said, "VICE has reached out to Pizza Inn for comment, both about the Presidential election and about Wednesday's attempted coup, and we will update this post when we hear back." Yeah, I'd like a response, Brandon.
They pulled the PR. BOD knows CEO f up.
He will learn Texas is not as red as he thinks. People will be going to Pizza Patron.
It's interesting that the market is on a huge rally right now. At least my stocks. The market apparently likes the idea of Joe Biden as President. Yet RAVE is not participating in the rally. They participated on a buffett PR, but not this. And I told my friends in texts yesterday hat the NY Times is already forecasting a two-Senate house win. They have some good forecasting there. They have every district's demographics down. I told them don't worry, we have the two Senate seats. At least my friends that think right. Some think wrong. The market seems to like it!!! The market seems very happy that Trump is leaving office. Contrary to what a lot of market pundits have been saying about a divided Congress. I see the two Senate seats in the bag myself. Two blue winners. While iit was close, thie NY Times forecasting models were tilting blue all night long.My boss politely told me I work too much and need to take a vacation day. So I will tomorrow. She doesn't understand that I love my job!!! It's not really work to me. Since we are kinda slow right now, at least my division, I'm going to comply. I'll have more time to focus on stocks!!!! I can do some research tomorrow.Sadly, I hear Trump blasting through my walls right now. Sounds like Hitler. Very loud, and his minions keep clapping, hanging on to his every word. It's like listening to Jim Jones in the background. Well, I'm happy. My stocks or soaring . It's going to be a great 2021 I think. A good four years coming! Rave at 25 cents. I love that target price. Did you sell all your shares, JT? I really hope that's in the cards. Maybe a swap of NROM at $1.50, at least some of it, into RAVE at .25? I'd love it IFFFFF the cards fall that way. Not saying they will fall that way.
@Racer-X It’s suspicious that Brandon’s reform proposals include nothing about about a bipartisan commission to oversee the drawing of district lines. Why silent on gerrymandering or any abuse that benefits his party. ? How about no more electoral college. It’s sounds too one sided and convenient. And to suggest delay certifying the results which pence amazingly decided not to go along with. Brandon needs to be fired. He had ruined pie 5 for me. I doubt that néw franchisee of pie 5 shares his views. They don’t look like the type. I hope he causes division within his own ranks. Divide snd fire. Regime change. My ceo could bring a goodProductive culture to rave
Sold all of RAVE on last run up. Got better stocks to invest in. I am waiting for lower price. RAVE is caught up in the food delivery hype, but it is not a pure play on food delivery like Dominos but that is what is holding the price up. Delisting will make it sink. It looks like it will be delisted soon but I could be wrong and they could win their appeal. I wonder how major investors like Newcastle feel about the press release, I cannot see how they appreciate political involvement.
I will buy Rave again at $.25 after it is delisted and has a new CEO.
I second that motion! I hope that's how the cards fall. I'll be there with you on that time line, should it unfold that way. If we miss the buss, so be it. Maybe he's right and this will be a business booster, being that they are in Dallas and in small towns. Dallas is not as blue as Houston and Austin, but they aren't as red as Beaumont and country hillbillies either. They do have a sign going into Dallas on a big billboad, which is threatening saying somethiing about revenge for not voing for Trump. As if the funder of that sign speaks for all of Dallas. But the city lets it stand. So, it's a divided country and Trump is exploiting that. They face cognitive dissonance. Easier to believe a conspiracy than to face the truth. Luckiy for us, this is the most upopular dictator in history. They rise to power on popularity. Trump has never gained more than 50% in any poll, ever. Dictators -- at least the succesful ones -- have favoribility ratings well over 60%, which seems to be enough to move the needle to dismantle what is barely holding us up today. The Republic holding just barely. Until a more charismatic one rises in the future. Like a Julius Caesar.I was at Memorial Park a lot lately with my jogging partner. On two occassions, a convoy of redneck White pickup trucks and jeeps, very redneckish in appearance, came in witih flags of Trump and yellow signs with a snake saying "Don't tread on me" honking horns, etc. Same in appearance as the ones that made national news, trying to stop the Bien Bus during its campagn. The hypocrisy! But they were also followed by a convoy of police escorts this time to keep the peace I suppose. Idiots!! But that's what propaganda does. It divides. Brandon chose to sink to that level.
The CEO should focus on what matters. This stock is headed for a fall and the jerk is worried about election results. On December 29, 2020, Rave Restaurant Group, Inc. (the “Company”) received notice from Nasdaq that the Company had failed to regain compliance with Nasdaq’s continued listing standard requiring maintenance of a minimum bid price of $1.00 per share. The notice further advised that, unless the Company requests an appeal by January 5, 2021, the Company’s securities will be scheduled for delisting from The Nasdaq Capital Market and suspended from trading at the opening of business on January 7, 2021.On January 4, 2021, the Company timely submitted to Nasdaq a Hearing Request Form appealing the delisting determination. The appeal stays Nasdaq’s delisting of the Company’s securities pending the decision of a Hearing Panel. Pursuant to Nasdaq rules, appeal hearings are typically scheduled, to the extent practicable, within 45 days following submission of a Hearing Request Form.The Company intends to diligently pursue its appeal to Nasdaq. However, there can be no assurance that the Company’s appeal will be successful or that the Company will be able to evidence compliance within any extension period granted by the Hearing Panel. If the Company’s appeal is denied or it fails to timely regain compliance with Nasdaq’s continued listing standards, the common stock of the Company will be subject to delisting on The Nasdaq Capital Market.
Interesting how the stock skyrocketed on a PR about the return of the buffett. But yawned on his political stunt. I told my brother I have to sell my stock and I have to keep my word. I also told him I can no longer set foot in a Pie 5 or Pizza INN until Salano fired. He has no room protest because he supported Chick Fil A in their controversial statements, a company I boycott to this day. And has boycotted others. For me, if people want to get political, they have to choose the correct politics for my business. In this PR, he openly states that he makes a calculated decision that my business doesn't matter if I'm offended. So, to be fair, IFF Brandon chose to be divisive and chose my point of view, I'd stick it out. But, in this case, it's propaganda. Even if Hillary Clinton had thrown this temper tantrum, I would have been disgusted and been for nobody at all. Truth has to count no matter what you stand for. Sure, I'd love to believe in eternal life and a God. But just because most people do, it's not controversial. I have never seen any evidence. I know propaganda looks like. It happens every day on every topic. This, like God, cannot pass Carl Sagan's Baloney Detection Kit. Where is the evidence? Just like Creation Science. There is no debate amongst scholars. Look where Evangelicals flocked to in this country. A wolf. That's where religion always goes. Pathetic. That's the corrupted mind. The self-righteous.I must therefore remove myself from RAVE. You picked a good one, @JTrader_25 . It's not your fault. It could be something. IFFF Brandon really believes it, and it's hard to know, I call into question everything he has concluded about RAVE. It means he' snot scientific minded and jumps to conclusions. IFF he is just trying to appease a target market, then that's deceptively good perhaps if he's right. I just can't be a part of a deceptive campaign when the investment should be about truth in product and principles.My Resignation letter below:01/06/21 10:08AM EST Sell 50 RAVE Executed @ $0.902 01/06/21 10:08AM EST Sell 1450 RAVE Executed @ $0.902 01/06/21 10:08AM EST Sell 50 RAVE Executed @ $0.902 01/06/21 10:08AM EST Sell 50 RAVE Executed @ $0.902 01/06/21 10:08AM EST Sell 400 RAVE Executed @ $0.9021I now have zero shares. It was fun and adventure, and I made LOT of money here because of you, JT. Even this is a tiny profit I think. I think it was over $10,000 profit on that first run. Then a good amount the second time. Can't complain. It was good money. You have lots of great ideas. This was one of htem. And it may still turn out good.That being said, I do love scam stocks and scam artists. But that's a different story. That's fleecing people that vote against themselves. Adn they are good at what they do. Deception. That's the whole point of ridding on the coattails of scam artists in empty shells, for example. For this one, it was an investment and it was about integrity. I not longer believe. I do believe in scam arts. I don't believe in the sincerely deluded. That's all about truth. The truth of the scam. But RAVE is no scam. And that's now falsehoods and politics getting dirty and weaved into something that should be about fun and pizza and family and unity.And getting booted from Nasdaq is no big deal. I expected that to happen. It's still cheap. Good luck to all!
But at least my margin debt is coming down a little bit. And CIDM is a great subsitute; albeit unrelated but a lot more interesting! And they have China involved, so it's going to be more capitalistic in their thinking. More global mindset. 01/06/21 Sold -400 of RAVE @ $0.9021 Unassigned 360.7801/06/21 Sold -1600 of RAVE @ $0.902 Unassigned 1,442.9701/05/21 Sold 5000000 of BANI @ $0.0003 (Order #1459) Unassigned 1,489.0601/04/21 Sold Short 10 GE Mar 19 '21 $9 Put(GE) @ $0.31 Unassigned 304.8312/30/20 Bought 1000 of CIDM @ $0.6432 (Order #1456) Unassigned -643.2012/28/20 Interest FROM 11/26 THRU 12/25 @ 7.950%BAL 73,783 AVBAL 68,565 Unassigned -454.25And speaking of scams, there's BANI. A scam stock. Trippled my money there. $500 gamble. Only took 2 years to pay, but scams pay! That's being true to the scam. That's the premise. Truth! I've a investigations at IHUB. One is of a double identity. At least, that's what I imply without defaming. The evidence is strong. Unlike here and Brandon's delusions. No evidence. That tells me he is probably watching NewsMax now as a way to cope. And coping is not good. YOu need to face reality.
Oh, and selling those puts on GE is not going short. That's getting paid now for the right to buy GE at $9 if they put it to me. Paid to get a discountd by Mr. Market. That's what I like. Pay me to buy you cheap! This will be the eyar I get my margin debt down to zero. RAVE was supposed to help, but I can roll with the punches. I have an army and the world is my oyster.
Dumb press release, I assume the stress of CEO is too much for him and maybe he is getting near the end. Put out press releases that move the stock up. I buy again under $.70 but prefer NROM at this time.
@JTrader_25 I let that snarky comment he made about doing business in California slide in the last conference call. But this is unforgivable in my eyes. One thing I love about my company is that my former owner made sure she sold to someone with the correct politics. I love our ceo. And it’s a 180 degrees to Brandon’s politics. We have a very large division in California. I help them sometimes too. We do business In Florida too and since they aren’t regulated like we are texas they are a mess. Howard’s Schultz and the leaders of mod pizza don’t share his politics. But does warren buffet. Brandon implies you just be pro business or an enemy. A binary thinker when in fact companies like mine are market leaders. We are like the borg at my company. We buy everyone. Resistance is futile. And we have dark good culture that puts company first. And every meetint our ceo puts our health first. Every decision we make most put health of our clients us and contractors first. That’s our culture. I have no doubt Brandon thinks it’s a farce based on other political things he said backing franchisees going against science earlier last year. And I turned blind eye to it. But ni more. Plenty of value out there. I’m going to stay with 2000 shares but my heart and mjnd neefs to be in investments. And my heart is no longer in its. It’s not just about the money. It’s about ethics. It’s about the pursuit of truth.
@JTrader_25 nrom leadership has the wrong politics too. Lol. But at least they keep mouths shut. Mostly. Every now and then something between the lines comes out that reveals their positions. And they don’t think right. Probably why they keep messing up good things. But I have faith in them just because of that price and —. Just hope they don’t mess this one up. :)
He is entitled to his opinion but the ship is sinking and he is way out of line on this. I think he is on the way out.
PR is out today. Is Brandon Salano an idiot or just trying to be politically loud?"Millions of Americans believe that widespread voter fraud may have changed the results of the Presidential election. We believe this is probable, but the fact that we can't say for certain is what concerns us most."There is zero evidence. It doesn't matter how much you repeat a lie. A mountain of bad evidence is still just bad evidence.How about just focus on the food, Brandon, and get out of politics. Sheeze. Just for that, I'm lowering my target price to .57. I don't want my 8,000 shares back if he's going to act like an idiot on the world stage.
@Racer-X in fact because of this idiotic press release I’m just going to stay in with my current 2000 shares and buy no more. From henceforth pie 5 has lost me as a customer forever. I will go to mod pizza and support them. This will make my brother happy but I’ll shift my vote to my fathers vote for mod pizza because he thinks it’s better tasting. I like that Seattle chains politics better. Always did. But since Brandon is trying to divide people like this president I will divide to mod. They get my dollar as a consumer going forward snd I boycott pie 5 and pizza inn forever. I will never step food on their establishments again.
Merry Christmas all. I’m so happy. I need to buy my 8000 shares of rave back. Never should have sold. I’m with my brother who I haven’t seen in almost a year in person. He is thin. He lost so much weight. Got back on Fitbit app religiously which is what I do. He said pie 5 is part of his routine. He gets a vegetarian pizza with cheese and thin crust. True while personal pizza is just a little over 700 calories. That’s a good number for an entire meal that makes you feel good and not Leaving hungry and is delicious and cheap. He said pie 5 increased its prices on everything across the board. And I dont think his smaller personal size pizza is available at mod 5. I think it’s a little bigger there. Which is not good for his fitbit goals. For this reason alone I need my 8000 shares back.
Maybe $.90 is good here but I would like it for less. Bought CSCW at $.51 a few days ago, it might be getting ready to run. Check out FDBL.
@JTrader_25 my brother said they made the cool times longer in the oven. It’s more “doughy” he said. He still likes it but he liked the taste better before. And it was faster. He asked if it could be done the faster way and they said no because the procedure changed. Hearsay. But weird. I asked is it the same oven. And he said yes. I hope the price increases mean pricing power. I don’t know if they are shooting from the hip or tested that. But he is a true customer. I like the sound of those personal pizzas. Maybe I’ll be able to get some before heading back to houston on Sunday. Having a blast watching mandalorian and exchanging gifts. Worked late Christmas Eve and got up 530 am Christmas Day to get here by 1130 when everyone is waking. Lazy people around here. :).
I never got to eat at Pie 5 on my trip. I did notice as we passed it on the street that Mod 5 is on the same street, just two lights away on the other side. And speaking of reviews, my brother wrote a bad Yelp review for a business. I completely disagree. All the other voices in this group were silenced. It was a great seafood place. Fast food that's so heathy. But not in Houston. I'd eat there again and again if it were. But because they forgot his order, his narcissism sparked a 1-star review for the place. And he got his refund and didn't like the way the manager handled his complaint. Some people just don't know how to handle complaints. They are just deer in headlights. The place didn't deserve his one-star review. I object. But I've been silenced. There was nothing malicious or rude or intentional in his "bad" experience. Mistakes happen. It's just not a big deal.
Insider buying today:seekingalpha.com/...I'm starting to think maybe I should not have sold 8/10 of my shares.
No, it was okay to sell. Be alert to buy it back again. It may be a tough few months with COVID and it should have an impact. You might get this again below $.70. I am waiting on it. If I miss it there will be others or another day with this stock. But insider buy is a good sign here. Had a good year, I have to put cash side for estimated tax. Chickalow has a new write up on NROM.
It's been a really good year. I'm going to pay a lot in taxes again. I never sell my "losers." If I do, they are going to run away and I'd rather pay even more taxes in the future. And if I don't, they are going to harass me and wait before taking off. But I'm used to their games, so I'm not taking the deduction. Because they are going to start acting up like Rave if I take a deduction.I am sooooo busy in my first industry job. But it's so NOT BUSY in my 2nd industry. The best month of the year is now, and I have only 3 jobs booked this month. All within the week. All 3 very tiny jobs. Just a few of us required to work them. But I like it that way. I love these people I'm working with. This is the A-Team. No pixies. ;) Good, because I don't want to train anybody. LOL Granted, I'm not looking for business. I did a little back in April, but I just let people call me. I'm too busy to go looking for it. But this is sooo highly unusual. I hsould be booked solid all month, New Years Eve, the day after . I do this same family's Christmas Eve party year after year adn they are so high maintenance and so hard, which is why I'm permanently tied to the hip to them. It's always me and the same crew, year after year. Never changes. And I always said, if they ever abandon me, I'm not doing it. That's too much without a seasoned ccrew. But I'm used to it and I'm good at it and I just like them. And, shoot. Nobody is making commitments yet. This is so weird. I really think they will end up doing something on a smaller scale, but I'd be in trouble if I was relying on this second industry. This was supposed to be recession proof. And it does hold up in all recessions. Except a plague. I didn't factor that in. But at the same time, it really removed everything I don't like in my 1st indusry and forced change. Change we've only been trying to get people to make for 2 decades at least! Go green! I mean, shheeesh. Give them better options, and they go with the bad options every time. Now they are forced to go with the good options.If I was dependant on my 2nd industry alone, and Congress unable to get a stimulus package out, I'd be pretty angry right now. I'm going to pay my taxes with great pride because these are a blessing!!! And I want Rave, darn it, at 77 cents. I'm going to up to 77 cents. And this time I'm not selling. My brother keep on and keeps on going to Pie 5. He just love the place. And he keeps texting me picture of all these great pizzas, and it's making me hungry. Wish a Pie 5 was near me . I do like it. I want everything I like to be owned by me.
I will go back to RAVE again when it slides back with intent to hold. ARCO and TAST are going good. Last night I was looking at CIDM based on a news release posted a few days ago. Never heard of it before. When I checked today it was up about 25% from the day before.
New PIE 5 Coming:godanriver.com/...This is especially interesting to me. Because this franchisee as I understand it is building his own shopping center to house 3 of his own franchised ventures. I never see that. And one of them is Pie 5. Another one is Edible Arrangements. Two unrelated ventures, but I own both as a stockholder. Pie 5, being RAVE of course. But Edible Arrangements is in a partnership with RMCF, my other stock.And, of Edibles, it's described: " gifted decorative fruit and chocolate arrangements" Those chocolate arrangements are the new partnership. Which means, he will have RMCF in there as I understand it. He should open up an RMCF franchise and make it co-branded. And kick Wich Wichy out of there. Two battered stocks, one new shopping center, and a franchisee that likes my ugly ducklings. And one that's is his own landlord, owning his own property but paying royalties to me. I like the way he thinks. I call that a good omen!
Interesting article, RAVE is moving back down and I will have to buy again when it gets to about $.70. I read sometime ago about Edibles and Rocky in a deal to include Rocky as a chocolate partner on its web site. Don't think Rocky supplies the chocolate that coats the strawberry's. Edibles might buy Rocky one day for sure. Good match. Maybe there is hope for P5. Picked up some IVFH today at $.28. I think RAVE is perceived by Robinhood crowd as a home delivery pandemic play which explains the recent run up. Edibles makes a nice gift for anyone. Starting to get interested in TTCF. TAST closed at over $6.55. Bought some a few weeks ago.
@JTrader_25 that’s the best theory I’ve so far about the movement on rave. Sounds plausible to me. I’ll go with that until a better theory can replace it. I’m hoping for .67 here. Glad you got back in to TAST and got more ivfh. Seems like penny stocks aren’t participating in the market rally. But that’s okay because it’s been a darn good rally. They obviously like Biden.
RMCF had its week this week too. I have 3,000 shares there now whereas last year at this time I had 1,000. The other 2,000 priced in and around $3. Not enough to pull my avg. share into profit. In fact, my avg. share price is $6.21. Still a ways to go before paper profits, but I'm happy at those opportunities and having 3,000 shares there! I think you are correct about the chocolate used on their strawberries, but I think there is a good chance RMCF is also being sold in those Edible stores. I can't say for certain, but that was my understanding of the partnership. There are some Edible stores in Houston. I really should go check one out and get a visual and remove all speculation on the matter one way or the other. Might be a project for me soon.You can also see RMCF branded products now in many of the Edible products as shown on the website. They already took over the RMCF website, which directs people here:www.ediblearrangements.com/...BTW, the mall was extremely busy today. Macy's was packed and so was the little RMCF in there today.
I'll take some profit today.Sell 7500 RAVE Executed @ $1.0652,000 shares left of free RAVE. Free again. Was free before, but free yet again! Paid for in full, taxes and all, by Mr. Market.Thank you and have a nice day!
Dumped it also. I had started again with WTRH and dumped that also. Small profit but I will take it. Both will come back down again.
I'm learning my lessons! I don't mind the high taxes. Somebody has to pay taxes around here. It's going to be a lot more than $750 too. It's such a thankless job, funding all those good services.I can be happy with 2,000 shares!!! 8,000 again will be icing on the cake. WTRH is always going to harass me for declining them.
It seems RAVE is caught up in the pandemic home delivery mania. It runs with WTRH and the others. But that is a mistake as they are a dining place with delivery and contactless takeout, much like NROM. NROM does not move with the pandemic delivery stocks but RAVE does, There is a disconnect. Back to $.70 for Rave.Have to make it to pay it. Some stocks are investments but I could make a good living flipping down and out micro caps.
10Q is out.
Wow, that snuck up on me. So, we get excitement over a buffett and they yawn at the 10Q. Well, so much for logic.It's not as bad as I was expecting. Tiny net profit. Hung on to their cash. Surviving with net profit; albeit with an even smaller reduction in operating cash flows. Somewhere around 78% of their franchise revenue from last year...So, there's no conference call? No PR? No nothing? I wanted a conference call. I feel jipped. I mean, Noble Roman's gives us the '80s party lines with no transcript. Be there or miss it. Come on, Brandon, you can't do that much?I can't peruse that much as I got to get back to here. I just got back from lunch. If I knew this was out, I would have spent my whole lunch devouring this. Nonetheless, looks like a Covid surivival story. Went in on fire, still in on fire but alive and kicking. The Pie Fivers, however, taking on brunt force trauma. They might be on their death beds. They need emergency care. Can safely add the $3.8M from the equity sale to the current $3M which doesn't seem to be leaking, for a cool $6.8M currently on the balance sheet. Nice equity sale on that runup. We need more PR's about buffets. Obviously, Mr. Market likes buffets and not net profits.
The PR summary just came out. Summarizing everything I said above, exactly, 3 hours prior. Such as:""RAVE's cash balance of $2.9 million at September 27, 2020, coupled with $3.8 million of gross proceeds from sales of common stock subsequent to the first quarter, reinforces our position as we continue to confront near-term uncertainty in our industry."Glad I didn't miss anything important. I'd say that's a good cushion with the tiniest of profit. But that's a huge reduction in sales, so that came with a huge reduction in costs. I wonder how their cheese costs are faring. So, it's coming out in reverse. Usually the PR comes first, then the 10q. They are going backwards. Does that mean we are going to get a conference call announcement?? Where is our conference call? I want a slide show! I want Excel. I want power point presentations.
They were slick in getting the stock sold. I am sure there will be something forthcoming regarding a call. Just have to preserve the franchisee's until post COVID.
Back for more! 10/27/20 09:38AM EDT Buy 8000 RAVE Executed @ $0.679999All shares sold, now bought back. This is the way my favorite rental property was supposed to work out. Instead, we have a supply problem and delusional home owners.
Bought some more also. I still think it will go lower but the day traders have found this after the prior run up. Hard to get NROM under $.50. Filled Buy 2000 RAVE Market 0.6899 -- -- 09:53:33 10/27/20
It's interesting with all that tremendous volume, the short interest is still miniscule. And as the markets take a beating, this one stays strong in the high 60s. I don't know if we'll see .50 again. Maybe... That's a lot of buyers that bought higher, and psychologically speaking, they won't want to sell at a loss.I haven't seen our short interest rise above .4 percent, which is where it was before that rally. I know it's a lagging indicator, but it's been quite a while now. It still doesn't budge. Usually spikes like that attract shorts.LUB, on the other hand, is still over there with low volume and a powder keg of short interest at 12% still. They are still trapped. That could be explosive if they are forced to play their hand.
Dang. Ourv timing was impeccable, @JTrader_25 . Stock is surging again, in 80s now. For what??? For this?seekingalpha.com/...A buffett? NROM just announced a grand opening with record sales in a pandemic and the market yawns. And they go hyper over this? What in the heck is wrong with Mr. Market's brain? I'm not complaining. I'm glad I pulled the trigger. Can we go to $3.00 tonight please? This time, if my boss tells me to quit working so hard and go home, I'm going -- In fact, I'm going to block her right now. I see no evil; I hear no evil.
From 8K file 10/15"Subsequent to the Company’s most recent fiscal quarter ended September 27, 2020, the Company has sold 2,539,682 shares of its common stock at a weighted average price of $1.48 per share in at-the-market sales pursuant to an effective registration statement on Form S-3 (File No. 333-221169). The Company received aggregate gross proceeds of $3.76 million and aggregate net proceeds of $3.65 million from the at-the-market sales of its common stock."This must have been done during the run up in price. Not sure who bought the stock. Right now they have plenty of cash.
Wow. That's a good testament to the stock's value. Who would buy the stock at a premium to market, unless they felt like there was not enough liquidity? I guess that's my cue that I better buy my 8,000 shares back on Monday. There could be a reverse split. I hope not, but the stock is dirt cheap regardless. Dang it, and I also want TOT. Maybe I cna just reach out for 500 shares of TOT on Monday instead of 1,000. I was at a two-day event on a famous ranch in Texas, 2-hour drive from Houston. Working a nice catering event. Stayed the night, and been working non-stop. It's good to see Texas economy moving along. The traffic was really heavy coming back. Lots of people out and about. And we were respecting Covid, following CDC guidlines. I'm so glad wealthy people follow rules. Unlike some of those Fuddruckers patrons. Hey, wait a minute. at-the-market sale? I'm not sure I understand. So, they sold during the runup, subsequent to Sept 27th? Sold into the market? Why would that drive the price up instead of down? I don't understand. I'm not complaining, but I don't understand. And it says that put them into compliance. And I don't understand that either because you also have to have a market price over $1.00, and I don't think it stayed above $1 long enough to regain compliance. Again, not complaining, but I don't understand.Oh, wait. It says, "regained compliance with Nasdaq’s continued listing standard for minimum stockholders’ equity..." So, that doesn't specifically say they are in compliance. Just only in compliance for that one particular listing standard. But they are still in violation of others. So, maybe an r/s in the cards. Maybe, maybe not. I better get greedy for .50 and buy 1,000 of TOT, and keep my 2,000 *free* shares of RAVE.Decisons, decisions....
I am thinking that RAVE took advantage of the run up. Probably sold it as it was going back down after you sold yours for $2.00, opportunistic on their part. Interesting on TOT, they own majority of SPWR and are a major shareholder in the recent spin off. SPWR stock has done well but you do not see the appreciation in TOT. I suppose TOT is so big it is just a blip.
I thought the breakeven was good considering the whack job on the top. They have the liquidity for 2021 comfortably it seems. I don't understand the tax adjustment. That's over my head. In fact, I'd love somebody to explain that in layman terms.Going by memory, nothing exciting. I'm looking forward to Q1 which just ended I think. NROM has now officially passed RAVE in market cap and starting to run neck and neck on price. That's another pizza company of mine of very similar size in shares and sales. But they have nepotism with some good things going on. And we have a turnaround artist with forest fires out of control. Pros and cons to both.Overall, I think it's a good future in store. I think realistically speaking we can expect the Pandemic to burn itself out by end of 2021 with or without a vaccine. So, I think if we weather the storm, we'll be okay. Just a buck is a 100 percent return. I don't think I feel as good about the prospect of a 100 percent return in Tesla right now. Although, Elon Musk is amazing!! But we are cheap for a reason. Low expectations, and I thrive in low expectations. That's why I personally never wanted to leave little league baseball. I think Solano has a small company here, and I think he has the skill set to survive and eventually turn this around. It's simple as he said, on the surface. Of course, easier said than done. But in theory, it's simple.
Good news here, RAVE looks like a survivor. May buy some more. Looking quickly at this I think the tax adjustment is a write down of a deferred tax asset that was accumulated due to loss carryovers from prior years. Losses produce tax savings so the savings becomes an asset. This would be a non cash charge so it is not an issue. RAVE could be 10 bagger one day.
But why a write down if you can continue to carry them over? That's the part I don't understand. It does seem like Pie 5 needs a whole lot more work than Pizza Inn. But Pizza Inn is much larger, so that's good. But Pie 5 is much more interesting. So, that's good to have an interesting project that isn't the bulk of the weight here in my eyes.I think you are looking at two 10-baggers here, 83. NROM and RAVE
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