I agree. They need to announce the beginning of co
Post# of 3935
(Total Views: 328)
Posted On: 05/01/2017 6:28:39 AM
I agree. They need to announce the beginning of construction on the NorCal location (from the LOI). I don't care about all the auxiliary revenue streams (food, clothes, merchandise) or thoughts of franchising/M & A until they build a foundation of profitable stores.
(Disclaimer: I am a shareholder)
All these PRs of what they "plan on doing" aren't going to increase the value of this company. It's those kind of PRs that penny stocks are known for putting out ad nauseum.
Building another store, en route to building more AND making them profitable, is the foundation they need to work on FIRST.
I know they can get these stores running in the black. I have no doubt there.
This reminds me of the Canadian show "Dragons Den" (their version of Shark Tank). They have a Dragon, Jim Treliving, who has built two very successful franchises (Boston Pizza and Mr. Lube). He is considered the resident expert on franchising.
All these people come on the show, pitching franchising after opening one or two stores with shaky bottom lines. He chastises them for wanting to franchise before they have anything worthwhile to franchise.
Same with GIGL. The basic "crawl before you run" applies here. Franchising in Dubai? M & A? Clothing and food lines?
Just open some stores!
1) One store would be a great next move. (crawl)
2) Then another...work on making them profitable. (walk)
3) THEN they can think about franchising because they will have a profitable business to franchise. (run)
If they had announced the start of NorCal construction already and they are working on auxiliary revenue streams at the same time, then an argument can be made for their plans.
Maybe they think they can franchise after only two stores that are in the red? The only way this makes sense is if they are worried about someone copying them and they want to be first to market and grab market share before a competitor does.
NorCal is already funded by the mall company. What's the hold up? They are going to open a store in the Middle East before they are opening one in their backyard?
I am totally long on this company with a decent sized position but these last few PRs have me shaking my head.
Just because I have a few tires and a windshield laying around my garage does not mean I can start a car company.
(Disclaimer: I am a shareholder)
All these PRs of what they "plan on doing" aren't going to increase the value of this company. It's those kind of PRs that penny stocks are known for putting out ad nauseum.
Building another store, en route to building more AND making them profitable, is the foundation they need to work on FIRST.
I know they can get these stores running in the black. I have no doubt there.
This reminds me of the Canadian show "Dragons Den" (their version of Shark Tank). They have a Dragon, Jim Treliving, who has built two very successful franchises (Boston Pizza and Mr. Lube). He is considered the resident expert on franchising.
All these people come on the show, pitching franchising after opening one or two stores with shaky bottom lines. He chastises them for wanting to franchise before they have anything worthwhile to franchise.
Same with GIGL. The basic "crawl before you run" applies here. Franchising in Dubai? M & A? Clothing and food lines?
Just open some stores!
1) One store would be a great next move. (crawl)
2) Then another...work on making them profitable. (walk)
3) THEN they can think about franchising because they will have a profitable business to franchise. (run)
If they had announced the start of NorCal construction already and they are working on auxiliary revenue streams at the same time, then an argument can be made for their plans.
Maybe they think they can franchise after only two stores that are in the red? The only way this makes sense is if they are worried about someone copying them and they want to be first to market and grab market share before a competitor does.
NorCal is already funded by the mall company. What's the hold up? They are going to open a store in the Middle East before they are opening one in their backyard?
I am totally long on this company with a decent sized position but these last few PRs have me shaking my head.
Just because I have a few tires and a windshield laying around my garage does not mean I can start a car company.
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