this message is clip from NUZA folder on AOL stock board.....
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Subj: NUZA....good or bad news....
Date: 96-09-12 18:32:20 EDT
From: DaTuBaToO
To aLL fOoLish piZZa Lover........
For the past few weeks we are seeing a price decline in our precious piZZa...as u know, our piZZa is tremendously on demand (forget the rumor of bankruptcy) both domestic and internationally with their high quality yet moderately priced cuisine.... THE REASON FOR STOCK DECLINE IS OUTLINE BELOW AS FOLLOWS (some of them were mention already by fellow pizza lovers, but i would like to reiterated again):::::::::
1.) Delayed released of 1996 FISCAL YEAR REPORT (ends on june 96)...it was delayed at auditor's office because of accounting that has to do with recent acquisitions/mergers with other franchise....
2.) Expected loss for 4th quarter (end of june).....again, the cause of this is a one time charge with acquisitions/mergers.......
3.) No MAJOR NEWS development for almost 2 months.......this is a typical for any OTC (no news is bad news).....but there will be a multiple news coming out starting with the release of fiscal report sometime this month then major news concerning about future merger, ventures in international market, and 1st qrt report release which end on sept. 96, all this before at the end of the year 96.......
4.) PROFIT TAKERS and PANICKY INVESTOR from earlier and recent investor who cashing in their profits or loss before the bad news release that was outline above.....FYI: if u guys check the price of NUZA for the last 365 days, u will see that this stock went down as low as .02 per share and there are a lot of investors
bought the shares between .02 to .20 from the last 9 months.....
5.) DELAYED of being listed on NASDAQ Small Caps.....this will happen sometime on the 3rd or 4th quarter of fiscal '97....
This leaves the long term investors, management/former owner of franchise/franchisor, and NeaL Rand who himself holds more than 3.4 million shares but the sum of those still control 90 percent of the shares who happens to have A VISION and knows the company will be SUCCESSFUL in the future, will hold the stocks firmly and planning to buy more because of an opportunity ......... This give us more opportunities too especially at this current depressed price of around .14 cent per shares......the stock might dip more down until fiscal year report was release.......if u can afford the risk, accumulation is recommended, rewards is great for this company especially if you are a LONG TERM INVESTOR....
My predictions for the whole year fiscal 97 (end on june 97) is there will be a slow down of merger/acquisitons and expansion (maybe around 12 stores or less), reason is to stabilize and slow the current expansion which is affecting the earnings (being diluted because of cost of merging) and i say it is GOOD NEWS.....but MAJOR EXPANSIONS will happen again in fiscal year 1998 which i have a target of 100 stores by the end of that fiscal year.....
Based on current stores and expansions plan, we should see a significant increase of revenues/earnings, I estimated to have revenues of around $35 to $40 millions dollars and net earnings of $5 - $7 million by the end of fiscal 97....but this is conservative estimates especially if they pursue their master plan aggressively....I recommend an AGGRESSIVE BUY at this depressed level with a target price of 2-3 dollars in 1 to 3 years (but again, this is conservative).........
just a thought........
fOoLish eL........
note::::. today at 9/12.....market capitalization is less than 8 million dollars......
any suggestions or recommendation of this post is according to wisdom, it SUGGESTED to be fOOLisHLy research again before investing...... =)
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