TOOT: Transfat Recipe: Code for BUY OUT?
Tootie Pie Company, Inc. (OTCBB:TOOT)
Okay, going trans-fat. That’s what the news release says. But what’s it really saying?
Trans-fat is a national issue, not a regional issue.
This move to trans-fat says to me this company is going national OR looking to get bought out.
This is a strategic move, NOT a recipe.
FOR SALE?
Ben E. Keith is a regional wholesaler. And that’s good, BUT they don’t need to go transfat, for Ben E. Keith, who is located in Texas, Oklahoma, New Mexico, Arkansas, Louisiana, Missouri and Kansas.
Sysco Foodservices is regional, too, but US Foods is national.
Are they doing this for US Foods or are they looking to get bought out?
Tootie Pie Company was capitalized with approximately $1.3 million in private equity and brought public via the filing of an SB-2 registration with the US Securities Exchange Commission, without relying on reverse mergers – the Company has only one class of common stock held by all shareholders (including management). With a current float of approximately four million shares and utilizing a cash valuation calculation, TOOT could be very attractive, from an acquisition standpoint.
Cash Flow Maximization Built Into Business Model
In terms of cash flow, the Tootie Pie Company is able to make and sell their pies before obligations are due for ingredients, which maximizes cash flow. Sales to their wholesale distributors provides a positive cash flow cycle for payment and Tootie Pie invoices their wholesale distributors when they pick up the pies at Tootie Pie’s docks; with typical terms being net amount due in fourteen days.
You decide.
View the StockGuru Profile for Tootie Pie
Tootie Pie Company, Inc.
129 Industrial Drive
Boerne, TX 78006
Phone: (210) 737-6600
Fax: (210) 237-4750
Website: www.tootiepieco.com
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Forward Looking Statement: This release contains “forward-looking statements” based on current expectations but involving known and unknown risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company’s plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements. Except for the historical information contained herein, the matters discussed in this release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See filings with the Securities and Exchange Commission, including, without limitation, recently filed Form 10-KSB and 10-QSB.