PennyStock Pick for Monday, August 3, 1998 !!
From: PennyStock Picks <profit@pennystockpicks.com>
Our featured PennyStock Pick for Monday, August 3, 1998 is:
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ American Kiosk Corp.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ (OTC BB: AKIS)
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Ask - Bid: $1 5/8 - 1 3/8
You can view the report on our web site at:
pennystockpicks.com
ÿÿ High Technology Baking System Creates a Turn-Key Business for
ÿÿÿÿÿÿÿ Drive Through Pizza Providing Fast 2.5-Minute Pizzas
Recent Newsbreaks
1. August XX, 1998, Siegmeister to Introduce In-Store Pizza Place to 8,000
Existing Accounts in Northeastern United States
2. July 30, 1998, John Mautner, of Nutty Bavarian Fame, Joins American
Kiosk; Mautner Appointed V.P. of Carts and Kiosk for Pizza Place
3. July 28, 1998, American Kiosk Now Offers an In-Store Version "Mini-Pizza
Place" for Grocery and Convenience Stores
Company Profile: American Kiosk Corp., d.b.a. Pizza Place, now based
in Palm Beach Gardens, Florida was incorporated in Delaware in May
1997 to develop and implement a national brand franchise system of
kiosk-style retail outlets to deliver popular food products to consumers.
The Company initially will focus on one of the country's fastest growing
market segments - brick oven pizzas.
The Company has entered into a contract with Toppers Brick Oven Pizza,
Inc., to which the Company has the exclusive right to market Toppers'
products through kiosks and kiosk-style retail outlets in the U.S. Toppers'
products include its patented pizza brick oven and proprietary pizza and
related food products. Toppers currently has over 3,000 brick ovens
installed in taverns, restaurants, and hotels.
The Patented Brick Oven cooks a crispy, fully baked pizza in just 2 «
minutes. The patented brick oven is a true refractory brick oven, which
maintains an internal temperature of 550 degrees Fahrenheit. Management
believes that the quality of the pizza prepared in the brick oven is
comparable to full-size pizzeria, brick oven pizza, and exceeds that of the
products currently offered at many national pizza chains. The brick oven is
extremely compact measuring only 23" x 9" x 17" and weighing less than 60
pounds. It uses a 110V outlet making it ideal for kiosk operations. Several
ovens can fit into one kiosk providing increased sales opportunities based
on increased baking capacities during peak hours. The brick oven also is
easy to use. The operator simply opens the door, slides the pizza onto the
refractory brick, pushes the start button and waits 2 « minutes until the
timer sounds, indicating that the pizza is ready to serve.
Company Product: The primary product is a single-serve individual 7-inch
pizza specially made with the brick oven. Each pizza has a thick and crispy
crust with a hearty topping of fresh ingredients (i.e., California
tomatoes, choice meats, 100% genuine cheeses and others). The Company
intends to offer an array of new products other than the current day Brick
oven pizza. Development is currently underway to add several specialty
pizzas from breakfast to dessert to gourmet style pizzas, and related food
products.
Company's Franchise Package: The Company began commercial offering of its
franchises in February 1998. Individual and family sized
pizza in wide variety of toppings will provide the bulk of sales, while the
related high-quality food products (i.e., pizza pockets, breakfast entrees,
soft-serve ice cream and yogurt, beverages and snacks) offer additional
sales. The Company has developed a corporate beverage contract with
Pepsi-Cola.
All products will come to the franchisee completely prepared and
individually packaged. These characteristics enable the operator to produce
finished products with exceptional speed, consistency, virtually no waste,
and labor at ease. The Company will provide easy-to-follow operational
procedures and training both at the Company's headquarters and at
individual sites to its franchisees. Assistance in site selection will be
available to all Company Franchisees.
The facility costs of the Company's turnkey franchise are expected to be
low relative to competing opportunities. The Company currently projects
that the turnkey cost for a typical franchisee (including franchise fees)
will be approximately $89,900, including site selection consulting,
complete finished kiosk, baking equipment, menu boards and an opening
inventory of packaging supplies, pizza and related food products. The
Company will provide setup assistance and startup training.ÿ
Potential Market: During the first four years of the Company's plan, the
Company's goal is to sell 1,000 new franchise units. The Company does not
expect that all units sold will immediately come on-line, because a
substantial number of franchise sales are expected to involve multi-unit
packages. For example, if a franchise were to purchase a 10-unit package, 5
units might be opened in the first year with additional units opened in
each of the next 2 years. Theÿ franchisee would pay for each of the
operational units as they are
activated. The future units would require only a deposit to hold the rights
to such units.
Revenue Stream: The Company anticipates revenues from franchise fees
for new units, a 5% royalty fee on gross sales, and commissary profits
representing approximately a 10% mark-up on food purchases. Initially,
income from franchise fees would represent the greatest portion of
operating revenues. Over time, royalty and commissary profits could be
expected to overtake franchise fees as the principal revenue producer.
For internal planning purposes, the Company has projected that each
franchisee will produce approximately $275,000 in gross sales annually.
Franchisees will be required to purchase proprietary pizzas and related
food products from the Company commissary in addition to trademarked POS
materials, ie., Pizza boxes, napkins, cups, etc. The value of all
proprietary foods purchased by franchisees from the Company or its assigned
distributors can be treated as essentially commissionable sales to the
Company at approximately 10% of gross purchases.
Marketing Strategy: The Company has obtained 12,000 inquiries from
entrepreneurs interested in becoming distributors, route operators, and/or
franchisees. The Company will further employ a wide variety of marketing
techniques to produce franchise sales, such as trade show participation,
trade advertising, direct marketing and media advertising.
The Company will employ its own personnel for franchise marketing.
Company- employed sales representatives will be responsible for qualifying
interested parties in a process that will include researching an
applicant's individual and/or business capabilities, financial history,
employment history, and references.
Competition: The market for fast-food franchises is intensely competitive.
Low barriers to entry and frequent new product introductions also
characterize this market. Therefore, the Company expects that competition
will increase in the future. Many of the fast food restaurants with which
the Company will be in direct competition will have universal name
recognition and significantly greater financial and marketing resources
than the company, e.g., Domino's Pizza, Pizza Hut, McDonald's, Burger King,
Wendy's, Little
Caesar's, Taco Bell, etc. While the Company believes that the low start-up
costs and low labor and space requirements of its franchisees and the high
quality of its products provide a competitive advantage to the Company,
there can be no assurance that the Company will be able to compete
successfully against current of future competitors or that competitive
pressures faced by the Company will not materially affect its business,
operating results and financial condition.
Marketing: The Company has hired the Hallmark Group, a full service
marketing, advertising and public relations agency. The Hallmark Group,
which has 100 professionals on staff, will provide Pizza Place with the
benefits of "big agency" resources, coupled with a local, attentive account
team. Hallmark can provide local market knowledge and superior marketing
communications services anywhere in the world.
Key Management:
- Richard J. Michael, President and CEO
While serving as distributor relations Director for Toppers Brick
Oven Pizza, Inc., from 1995 to 1997, Richard Michael recognized
the potential of building successful retail franchises around the
Toppers patented brick oven and award-winning pizza products. In
1997, he acquired exclusive rights to market Toppers products
through kiosk-style retail outlets in the U.S., and developed the
unique Pizza Place drive-thru concept. Mr. Michael's career spans
more than 25 years in the food marketing companies. He is a
specialist in distribution systems, including licenses, master territory
development and franchising.
- Antoine F. Mugnosz, Vice President USA, President, International
Mr. Mugnos recently retired as president of Revlon International.
During his 20 years with Revlon, he established the Revlon professional
division in Europe, Africa, the Caribbean, Latin America and the Far East.
Prior to Revlon, he was vice president of L'Oreal and was responsible for
propelling the development of this French company in the USA. As a seasoned
veteran of corporate management and of the many facets of international
expansion, Mr. Mugnos will represent the company both in the U.S. and
international markets.
- Art Scott, Secretary and Treasurer, Director of Operations
Mr. Scott is a food service leader with more than 15 years of
restaurant concept development and management experience. He was managing
partner of New Directions Restaurants, Inc., where his
responsibilities included development of a motor sports themed
concept, strategic planning, contract negotiations. Prior to that he was
president of landmark Restaurant Group, with total operational
responsibility for the multi-concept company, including a sports bar
and grill, double drive-thru fast food, mid-scale steakhouse and a
Southern style full-service restaurant.
- Michael M. Morgan, Sr., Director of Sales
Mr. Morgan was responsible for the rapid growth of Toppers Brick
Oven Pizza by successfully developing distributorships of the pizza
ovens and food products throughout the U.S. He has owned and
managed MC&T, Inc., a consulting firm assisting new car dealers
with franchise agreements, business structure, sales and marketing
training, profitability enhancement and buy-sell agreements.
Corporate Financials:
ÿÿÿÿÿÿ outstanding sharesÿÿ 3,117
ÿÿÿÿÿÿÿÿÿÿ long term debtÿÿ none
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ expensesÿÿ 75
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ net incomeÿÿ d75
ÿÿÿÿ total current assetsÿÿ 102
ÿÿÿÿÿÿÿÿÿÿÿÿ total assetsÿÿ 306
total current liabilitiesÿÿ 134
ÿÿÿÿÿ net working capitalÿÿ d32
ÿÿÿÿÿÿÿÿ equity per shareÿÿ $0.02
Data from Interim Report dated: Mar. 30, 1998, in Thousands
Company Press Releases:
- July 30, 1998, John Mautner, of Nutty Bavarian Fame, Joins American
Kiosk; Mautner Appointed V.P. of Carts and Kiosk for Pizza Place
- 07/28/98 - American Kiosk Offers In-Store Pizza Place Kiosks to
Grocery and Convenience Stores
- 07/14/98 - American Kiosk Signs Distribution Agreement with Cheney Brothers
-07/01/98 - Major Pepsi Bottler and American Kiosk to Promote Pizza Place
- 06/09/98 - American Kiosk Initiates Public Trading of Common Stock Under
Symbol "AKIS"
- 06/09/98 - American Kiosk Introduces First Drive-Thru, Brickoven
Pizza Served Fresh in 2.5 Minutes, Pizza Place Franchise Begins
National Roll-Out
Highlights:
- 1997 New York Restaurant and Food Service Show - Voted "Best Overall New
Product"
- Hackman's News Issue Alert (July, 1998) - Featuring Up & Coming
New Stocks Undiscovered by Wall Street
- The Palm Beach Post (July 18, 1998) - You can deliver yourself to
pizza
Links to Related Web Sites:
- Pizza Today - The Monthly Professional Guide to Pizza Profits:
pizzatoday.com
- Fudge Pizza? A possible desert vendor for Pizza Place?
digitalhighway.com
- More fun pizza trivia. Go to "If Microsoft made pizza ovens ..."
Other good Pizza humor, too: pizza.idirect.com
- A complete list of pizza associated url's:
ghgcorp.com
- The Pizza, Pasta & Italian Food Association (PAPA):
martex.co.uk
- Why franchises are hot properties:
mercurycenter.com:80/premium/business/docs/focus21.htm
- Franchise assistance, including how to start your own:
franchiseconnections.com
- 73% Franchisees 'Satisfied': Poll:
ltbn.com
- Franchise Times web site has some interesting articles on
franchising: ltbn.com
Corporate Information:
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Corporate Address:
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ American Kiosk Corporation
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 4400 PGA Boulevard, Suite 500
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Palm Beach Gardens, Florida 33410
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Company Info:
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Director of Sales: Michael M. Morgan
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ E-mail: amkiosk@aol.com
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Web Site: www.americankiosk.com
ÿÿÿÿÿÿÿÿÿÿÿ Ph: (561) 627-9002, Fax: (561) 627-0248
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ Investor Relations:
ÿÿÿÿÿ GFC Communications: Geoffrey C. Plank or James Dryer
ÿÿÿÿÿÿÿÿÿÿÿÿ Ph: (800) 925-7856, Fax: (561) 655-2171
Technical Position
Our interpretation of the technical position of American Kiosk, Inc.
(AKIS), indicates that this company has the potential to steadily
appreciate in price. The 52-week high for AKIS is $2 1/2 and 52-week low is
$1 1/8. The Company commenced trading as an OTC Bulletin Board stock on
June 9, 1998 at the lower $2 level. For about a month after trading, the
stock price depreciated and established a base at $1 3/8. Since that time,
the buying volume has steadily increased, and price appears to be in an
upward trend from the base price with slight pullbacks to $1 1/2. This is
where the stock is now, and we believe it is at a good buying level once
again.
The increase in buying pressure could be attributed to the three
significant press releases the Company has recently made public in July:
- 7/28/98 - American Kiosk Offers In-Store Pizza Place Kiosks to
Grocery and Convenience Stores
- 7/14/98 - American Kiosk Signs Distribution Agreement with Cheney Brothers
- 7/01/98 - Major Pepsi Bottler and American Kiosk to Promote Pizza
Place
This upward momentum is apparent and based on the following favorable
highlights the Company has received, could continue this positive momentum:
- Hackman's News Issue Alert (July, 1998) - Featuring Up & Coming
New Stocks Undiscovered by Wall Street
- 1997 New York Restaurant and Food Service Show - Voted "Best
Overall New Product"
-ÿ American Kiosk Introduces the First Drive-Thru, Brickoven Pizza
Served Fresh in 2.5 Minutes
PennyStock Picks believes the company is undervalued and that the stock is
currently at a decent buying price. Investing in this company involves risk
based heavily on competition and future financing. Our best judgement of
the short-term (three months) target price is $2.00 (~ 25% higher than
current prices), and a conservative long-term (6 months to 1 year) target
price of $2 1/2.
Disclaimer
c 1997, 1998 PennyStock Picks. All materials presented within the website
are not to be regarded as investment advice and is only for informative
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this website, we recommend consultation with a registered securities
representative. Stocks we select as our picks are not to be regarded as a
solicitation to buy or sell securities. As with any pennystock, companies
we've selected as our stock picks involve a high degree of investment risk
and volatility.
PennyStock Picks may hold positions in securities mentioned herein, and may
make purchases or sales in such securities. This includes individual stocks
featured on this website.
It should be understood that there is no guarantee past performance will be
indicative of future results. The accuracy or completeness of the
information on this website is only as reliable as the sources they were
obtained from. PennyStock Picks received 1800 shares of AKIS as
compensation for the dissemination of this information. For more
information, read our company background and compliance information at: pennystockpicks.com
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