Company visits, this one to NU Pizza Holding Company, OTCBB: NUZA.
Good Afternoon all!
I hope you all are having a good 4th of July Weekend thus far. I will be sending out today, a total of 3 e-mails with reports on my recent visits to Nutek, (OTC Pinks: NUTK), Kaire Holdings (OTCBB: KAHI), and NU Pizza Holding Company (OTCBB: NUZA). These reports will be staggered through out the day, and I am writing them in the same order I visited the companies. NUTK first (which you should now have a copy of by now), KAHI next, and NUZA last, which like I said previously, is how I visited the companies last week, during my visit to California.
These visits also include pictures, so be sure to click on the link included in this message, and follow the instructions to view those pictures.
Three other companies (NASDAQ stocks) you might want to keep your eye on that have been doing well IMHO, are FIBR, ISLD, and WAVX. Of the 3, only WAVX has been profiled (below) by Voyager's Stock Tips,
stockfaqresearch.com
as the other two, FIBR, and ISLD tend to be a bit more expensive in price that most of you prefer (though since ISLD is still under 50 bucks, my upper limit for a company profile, I still might do one on them ... but I'm not sure yet). Hence the reason I've not profiled these two companies, in detail.
However, I think (In my opinion that is) all three are moving back towards the prices they were, BEFORE the recent market 'crash'. FYI ... both FIBR and ISLD were around 150 bucks, and WAVX was over 50 bucks.
Now back to the subject at hand ... my recent visits to 3 companies in California.
My Third Company visit from Last week, here is the:
Report of my visit to NU Pizza Holding Company, OTCBB: NUZA, on Wednesday, 06/28/2000.
If you would like to learn more about NU Pizza Holding Company, and what it is about, I suggest you start here to BEGIN your research and DD on the company:
yourway.to
The above website is maintained a person, a friend of mine, who posts under the handle, lisau on the Raging Bull, mostly under on the KAHI board. I asked her to put up the website (see above URL) for me, which she did.
You can also go here to view pictures I took of that visit, which included 2 stores, one in Van Nuyes, and the other in Northridge.
stockfaqresearch.com
Picture labels (or rather each picture's file names) are self-descriptive. Just click on the first file name, then click on the back button of your browser, to return to the directory. Then click on the next file name, and repeat the procedure until you view all the pictures.
Q = What I asked
A = What Mr. Dan Rouse Answered with
Please note, Mr. Rouse’s answers are paraphrased, as I just can NOT write that fast.
Q) We recently saw a 1 million share buy order, was that someone in the company?
A) No
Q) Are there more stores coming, and if so, when?
A) Yes, there are three more Concept Stores coming. One will be a redesign (an old store that is turning into a concept store), and two will be brand new stores. This will happen in the next month or two.
Q) Can you project when you will get out of bankruptcy (Chapter 11, Reorg), and if you feel you will have problems doing so?
A) Hard to say in regards to time, but thus far, the judge has been favorable to us, and has been postponing the final creditor’s meeting. As for problems getting out of Bankruptcy (Chapter 11, Reorg) as a whole, no I don’t foresee a problem with it, as we have cash coming in, at approx 10 to 15k a month over our burn rate.
In addition, our new stores, that we recently opened in the last few weeks, are producing revenue 40 percent in excess of what we expected.
Q) What is your approximate burn rate?
A) 55 to 60k is our average.
Q) What about Press Releases? I understand about the judge, however, PR’s are the lifeblood of ANY OTCBB stock, and in my opinion it is important you put them out when you can. Can we expect to see more of them, especially since you seem to have some really great news, even with what little we’ve talked about here?
(at this point the other 3 shareholders chimed in, and agreed with me, that PR’s were important. One of those other shareholders, said he knew of some other ways to put out PR’s that were less expensive than business wire, and that he would get back to Mr. Rouse with them)
A) Yes, we will look into trying to get more PR’s out in the future, on a more regular basis. Note: I spoke later with Mr. Rouse, via phone, and he advised me that he has some things (though of course he wouldn't be specific with me) where that they, NUZA, might perhaps put one (a PR) out in Mid July.
Q) The last SEC filing was late, will the next one be on time?
A) Yes it should be on time, or at the very least, we will make sure that we will file for an extension this time. Last time it was late, because we were in the process of changing who does the books for us, and the filings.
(Note: Next filing will be the NUZA annual report, the 10k, for the period ending June 30, 2000. This 10k should should be due out by September 30th, 2000)
Q) Franchising in other states, how is that progressing, and when do you think you will be moving outwards?
A) It is going forward, and we hope to start moving outwards from California in the next few months, as in 4 or 5 weeks is what we are looking at, for approvals. One thing we do NOT want to do, is get ahead of ourselves, were we can’t support the franchisees out there.
Q) How much does each Franchisee pay to become a Franchisee?
A) Initially, it is $7,500 plus whatever construction costs it takes to build out the store, which could be upwards to 50k or better. Then it’s 4 and 5 percent of the revenue of that store.
(Mr. Rouse went on to say, that each store then gives 4 percent ongoing for Ad promotion, and 5 percent for being a franchisee, though I might have the two percentage numbers turned around with each other. Suffice to say, it comes out to 9 percent total, is what I calculated)
Q) What about Adverstising, where are you advertising, and how is that going?
A) We are advertising via Cable TV, and that is working out quite well, and in addition are using flyers like ADVO and such, and that too is working well for us.
Q) What about financing?
A) Well, we kind of have our hands tied, as Mr. Xxxx (the other shareholder in the room, the investment banker), can’t really assist us in this area, until we have our final hearing with the judge and creditors. Once that happens, then yes, we can obtain financing again. (at this point Mr. Xxxx, agreed with Mr. Rouse). However, we have funds coming in, that are over what our current burn rate is, so we have enough to keep us going at this point.
Mr. Rouse also advised me that they had a VERY strong April, and May, and that they are also opening a West Hills store, shortly.
We also discussed as a group, the apparent (In my opinion) Market Maker action, and I used the recent 1 Million share buy as an example. This was where I saw that after the 1 Million share buy went through, at 2 cents above the ask, they MM's followed it up right afterwards, with a small 'sell' and dropped the bid and the ask right afterwards!
I also told them what I saw, on level 2, while buying shares of NUZA, where the MM's would put my buy order at the ask, and IMMEDIATLY follow that order with a 'sell' order slightly below the ask, and then drop the ask and the bid again.
This to me, in my opinion that is, seems to indicate a HUGE naked short position, on the part of the Market Makers in NUZA. This because of what I was seeing on Level 2, I feel that the Market Makers are betting that because of the Chapter 11, the reorg that is currently in progress, that NU Pizza is going to go under, and they (the MM's) are betting that they will never have to cover (of which I feel they (the MM's), at least in my opinion that is, are most WRONG on this issue, especially with Mr. Rouse at the helm.
This information seemed to interest the other shareholders that were present, as well.
I will also point out that NU Magic Pizza, is much MORE than just a ‘Pizza Place’. They are actually diverse, and offer salsa products, juice bars, as well as Pasta, and Italian products as well, and all I might add, are quite tasty, at least in my opinion.
I also ordered a take out Pizza via Delivery, from their Sherman Oaks location, to my Hotel in Sherman Oaks. I found them to be VERY prompt, and the Pizza I ordered, to be quite tasty.
Overall, I was VERY impressed with Numero Uno Pizza, Mr. Dan Rouse, and his staff, not to mention the stores themselves, and the food (I must say, I never tasted Pizza like it before in my life. I really LOVED the crust, and the other ingredients were very fresh on a level I’ve not experienced before. The crust had a certain sweetness to it, that I had never experienced before. As for me, I can’t wait until they spread out into the Midwest, and can order it all the time!).
I also liked the fact that Mr. Dan Rouse, was formally the Western Franchise Director for Domino’s Pizza Chain, where he was responsible for Hawaii, California, and Nevada, just to name some. He was responsible for 450 stores, and 17 Million a month in Royalties. In other words, he’s done this before. I and some other shareholders, suggested he post his bio up on their website for all to see.
The only things I see that IMHO, make NUZA a risk, is the fact that they are on the OTCBB, and most importantly, the Chapter 11, or Reorganization they are currently under. Thus far, the Bankruptcy judge has been siding with them, NUZA, and has been putting off the final hearing, which I’m told from other sources is a good sign.
As I mentioned in the Q&A, Mr. Rouse advised he is looking for Late August, Early September (though that is not ‘set in stone’) for the final hearing. At that time, the creditors will either accept or reject the business plan, and the payment they will get at that time.
This factor is IMHO, the only REAL reason that makes NUZA risky. Otherwise, I VERY much feel that NU Pizza has a LOT going for it.
It’s stores are clean, and well lit, and in addition, are well kept. The local customers love them, and the food and service is IMHO, VERY good.
With Mr. Rouse at the helm, I think he is indeed turning this company around, in my opinion that is.
While I was there, there were also some other major shareholders there as well. These shareholders have been with NUZA since it’s higher (stock) priced days, including a major finance banker, and have no intentions of selling their shares, especially at these prices.
This tells me that they still have confidence in the company, and feel that the company will rebound.
As one shareholder (there were 3 others there), told me, this bankruptcy/re-org is a good thing, because it gives the company a ‘clean slate’, and in this manor, there shouldn’t be any more ‘white Elephants’ that will pop up down the road.
Overall, IMHO, I am more confident in NUZA now, than before I went. Mr. Rouse, I found, was a very hard worker, smart and IMHO, had a good head on his shoulders.
As you all know, I own stock in NUZA, and in fact have been buying more since I first profiled it to you a few weeks ago.
When I first profiled it to you all, I did so as a short term play, based on the goldenlists ( goldenlists.com ) website.
However, I find I was indeed wrong in that assessment. I find instead, NUZA, to be a great turn around company in the making, and thus, while risky (due to the reasons stated above), a great long term play (as in 6 months or more), at least for me.
As the money avails itself to me, I will continue to purchase more shares of this company, and build my position in it. This, as it is my opinion, even though it is indeed risky right now (due to the reasons I stated above), it does IMHO, have a future. However this is only MY opinion on this matter, and most important, you all must make your OWN choices in this area.
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As always, be sure to do our own DD and Research, and then decide for yourself.
IMHO, when playing the OTCBB and/or the Pink Sheets market (with IMHO, the Pinks being the most 'risky' of the lot), one should only risk funds that one is fully ABLE and Fully WILLING to lose TOTALLY!
Should after completing your OWN DD and Research, you find you are still interested, and decide to buy any of these companies stock, then IMHO, you should ONLY invest not only what you are ABLE to lose completely, but ALSO what you are WILLING to completely lose.
If you would like to know more about these companies, or any other company that has been profiled by Voyager's Stock Tips, go here:
listbot.com
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Lastly, and I can NOT stress this enough, do your OWN Research and DD, and then, and only then, decide for yourselves if ANY of these companies, is something you might or might NOT be interested in.
Happy DD and Researching!
JMHO, FWIW ….
Voyager
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