Dan,
Got this in my email. Correct me if I'm wrong, but didn't BCHP have a 40% in All-American Foods?? What has happened since last summer?? Did they sell it? Do they still own at % of the company.
Obviously not, or BCHPE would be much higher valued than it currently is. Imagine that they sold it to pay off debt.
Any opinions??
Regards,
Ron
The Future Superstock (http://www.futuresuperstock.com)
February 15, 1997. (Released for the opening of trading on February 18,
1997.)
Email the Editor: Jeffbruss@aol.com
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Copyright (c) 1997 by The Future Superstock. All Rights Reserved.
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The Future Superstock would like to welcome our new subscribers to our
Privileged Email Program. This program is reserved for those investors who
have registered on our site. As a privileged member you are entitled to
receive our Stock Reports 5 days before they are posted to the public on The
Future Superstock Internet Site. The Future Superstock is highly selective
in the companies that it profiles and reviews. We only profile stocks that
we feel will double to triple within the next 3 to 12 months. We only deal
with the Presidents and CEO's of our profiled companies so that we might
obtain the most accurate and reliable information available. The Future
Superstock profiles one NEW company per month.
Before we get into the details of our NEW February Stock, we would like to
review our profiled company's from February and March of 1996. The Future
Superstock has now made it policy to review every company that we have
profiled in the past. Now that our first two picks have had one full year to
trade since profiled, we thought it might be a good idea to see what happened
to those company's stock prices over the past year. Our February Stock of
1996 was Rochester Minerals Inc. Rochester was profiled at $0.35 per share.
Over the first 8 weeks, Rochester soared to $1.45 per share for a 314% gain.
As of this Friday, February 14, Rochester closed at $0.52. Our March stock
of 1996, Dry Dairy International, was profiled at $0.065 per share. Since we
released our March stock, Dry Dairy has traded as high as $0.37 for a 469%
gain. As of this Friday, Dry Dairy closed at $0.14 per share for a 153%
gain.
Enough with the old stocks and on with the new. Our February stock of 1997,
being released for the first time today, meets four important criteria: 1)
The analyst's that we interviewed feel the stock is headed to much higher
prices; 2) The industry that the Company is in is one of the hottest
sectors with analyst's on Wall Street; 3) Over the past two weeks there has
been a significant increase in volume on this stock (this is usually a signal
that the stock is ready for a move); and 4) The industry as well as the
Company are experiencing rapid growth. The name of the Company is All
American Food Group. All American trades on the NASDAQ under the ticker
symbol AAFG. All American's stock is quoted in every major paper on a daily
basis. AAFG is currently trading in the $3.75 to $4.25 range and has traded
as high as $5.25 recently.
All American Food Group, AAFG, owns and franchises two distinct types of
bagel stores throughout the United States. Over the past several years,
bagel consumption has increased dramatically in the United States as bagels
are now hailed by health-conscious consumers as the ideal lunch and breakfast
food. It is for this reason that Sara Lee Corp. and Lender's Bagels recently
began offering fresh bagels in grocery stores worldwide. In addition,
restaurant operators are finding that bagels generate some of the highest
financial returns in the food service industry. Soon enough you might see
franchised bagel stores next to your local McDonald's or Burger King's.
All American Food Group owns and franchises both "Goldberg's Original Old
World Bagels" and "Sammy's New York Bagels". Goldberg's Bagels offer a
traditional bagel/delicatessen menu consisting of bagels, sandwiches, salads,
soups, coffee's and other bakery items. In total, Goldberg's offers over 75
different food items on their menu to the consumer. The second type of store
that AAFG owns and franchises, Sammy's New York Bagels, is the only known
franchised food chain that offers bagels and related dairy items in a Kosher
store. The Kosher market is estimated to be in excess of $2 billion alone in
the United States and has grown at a rate in excess of 20% per year since
1990. Most consumers equate the Kosher market with quality. Both Goldberg's
Bagels and Sammy's New York Bagels are typically located in strip-malls or
community shopping centers with high-traffic. The stores range from 750 to
2600 square feet and include a dining area that provides seating for 8 to 30
customers.
There are two very exciting things about All American Food Group (AAFG) and
the current price of the stock. The first is the fact that AAFG just
recently went public. (They were an IPO, initial public offering, in
December of 1996.) AAFG went public at $3.50 per share and the issue was
oversold. The second exciting thing about AAFG is the current price of the
stock. AAFG went public at $3.50 per share and the shares can now be
purchased in the open market at the $4.00 to $4.50 level. That is not far
above the IPO price. Investment in AAFG's stock now offers investors the
opportunity to get involved near the ground floor IPO price. We believe that
you will see AAFG's store sales explode over the next 6 months as AAFG
continues to open additional stores throughout the United States.
Currently, All American Food Group owns or has franchised 19 stores that are
in full operation. In January of this year, less than two weeks after going
public, AAFG announced that they had signed agreements to franchise new
stores in North Carolina, South Carolina, Pennsylvania and Illinois. These
four new states join the previously existing states of New York, New Jersey,
Arizona and Ohio where AAFG's stores are currently located. As of this
writing, AAFG has signed marketing agreements to open over 100 new stores.
In a news release dated January 23, 1996, AAFG announced that they have
signed an agreement to acquire 8 additional stores in the New Haven,
Connecticut area. AAFG is signing up franchise's at a rapid pace, having
signed marketing agreements for over 100 stores currently, and expects to
have signed marketing agreements to open over 300 stores within the next 18
months.
To date there are only a hand full of publicly traded bagel companies that
offer a restaurant style atmosphere. One of the most well know company's is
Einstein's Bagels who went public less than 7 months ago. Einstein's stock
soared to $35.75 per share and is now trading in the $26 to $27 range. As of
January, 1997, Einstein's Bagels had 241 stores in operation. We believe
that All American Food Group will follow in the same footsteps and exceed
Einstein's Bagels in growth and profitability. Einstein's Bagels has a very
limited menu while AAFG's menu comprises over 75 items. One of the key
elements in AAFG's business plan is to grow through acquisitions. The above
number of stores that AAFG plans to have contracted, 300 stores within the
next 18 months, does not include any stores that may be acquired through
acquisitions. AAFG is currently in the process of seeking a large
acquisition. Acquisitions could bring the store totals up into the hundreds
by the end of 1997.
The fact that All American Food Group is not widely know may present an
opportunity for investors to buy stock at the current levels of $4 to $4.50
per share. AAFG's exposure will increase dramatically, like Einstein's
Bagels, as the stores continue to open nationwide. Remember that marketing
agreements have already been signed to open over 100 stores as of
mid-February. This exposure will not only increase the awareness of AAFG's
stock but will also help Goldberg's Bagels and Sammy's New York Bagels become
house-hold names.
The analyst's that we interviewed feel that All American Food Group, AAFG, is
poised for a move. Analyst's have set a target price for AAFG at $8 to $12
per share within the next 3 to 12 months. With marketing agreements already
signed to open more than 100 stores nationwide, All American Food Group
should be one of the fastest growing franchises in the United States. Since
AAFG went public, the stock has traded as high as $5.25 and as low as $3.09.
AAFG's stock has been very solid between the $3.75 and $4.25 level over the
past several weeks and we feel that the short term downside risk is $3.75 to
$4.00 per share. On February 14, 1997, AAFG closed at a bid of $3.875 and an
offer of $4 per share. All American Food Group is traded on the NASDAQ under
the ticker symbol AAFG.
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