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Spicy Pickle, Inc (SPKL.OB) – Two For Two

If you read the blog on a regular basis (as I hope you do), then you’ve already seen the short novel I’ve crafted about Spicy Pickle (OTCBB: SPKL) over the last couple of days. I’m not going to repackage those same thoughts, but I will summarize my observations. 

In short, I don’t think I could be any happier about today’s response to SPKL’s earnings news. As I mentioned in Tuesday’s blog entry, I didn’t really expect their third quarter numbers to look fantastic – all the expense of going public and getting some visibility for the stock was incurred last quarter. Even though it’s a one-time expense, my worry was the market would jump to conclusions and sell it off.

I guess I underestimated investors. Like I encouraged everyone to do over the last couple of weeks, the market seems to understand this is an early-stage growth idea, and the way things are in the recent past are not the way they’re going to be in the near future

The ‘future’ is evident in Tuesday’s news rather than Wednesday’s earnings. On Tuesday, we learned they’ve opened their 31st store, and signed leases for two more. That’s the fifth new store in seven weeks, and the company still expects to have 50 open by the year’s end. Growth, growth, and more growth. I think the fundamentals will fall right in line.

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