MEDL Mobile Holdings, Inc. (MEDL: $0.27) – Undiscovered Gem In Exploding Mobile Apps Sector

8th November, 2013

New HOT Stock pick: MEDL Mobile Holdings, Inc. (MEDL: $0.27)

Targets:
Near term: $0.50 – $1
Long term: $3+

About MEDL Mobile Holdings, Inc.
MEDL Mobile (MEDL) is an incubator, developer, accumulator and marketer of mobile technology.  Company was taken public in 2011 and enjoys strong relationships with brands, entertainment industry leaders, bloggers, journalists, digital influencers and developers.  An award-winning design and development team that has architected, developed, acquired and marketed more than 300 mobile applications with large existing user base of over 20 million downloads.  Company owns over 75% stake in Hang With, Inc. – a global, mobile, social media platform that connects and shares via live-streaming video and will be monetized by fully integrated advertising. The Hang W/ mobile app connects people around the globe through live streaming video and simultaneous chat — allowing hundreds, thousands and eventually millions of users to “hang with” their favorite people in real time. 
Currently the company has a library of more than 200 apps for iPhone, iPad, iPod Touch and Android Devices.  In many of these apps, the company generates revenues from in-app purchases. The company can use push notification to message directly to the users, sending messages to drive usage or even drive purchases of new apps. The company can run advertising within many of the apps, generating revenue and driving downloads of additional apps.  Successfully built a system for developing and taking ownership of Mobile Apps.  MEDL and MEDL Apps have been featured on CNBC, BBC, ABC, CBS, NBC, CNN, in the pages of Esquire, Fast Company, The New York Times, The LA Times, The Chicago Tribune, The Orange County Register, The Washington Post and The Guardian; and by top sites such as Mashable, Macworld and Gizmodo.

Multiple MEDL Apps have reached #1 in their category on the Apple App Store.

List of company’s Mobile Apps for Android and/or iPhone:
http://www.medlmobile.com/apps/all

Booming penetration of Smart phones with exploding downloads of Mobile Apps:

Global shipments of smartphones are continuing to increase, growing 45% to hit a record 251 million units in Q3 2013, from 172.8 million units a year ago, according to the latest report from Strategy Analytics.  This was the first time ever that smartphone shipments exceeded a quarter-billion units in a single quarter.  Smartphones accounted for 6 in 10 of all mobile phones shipped worldwide.

The overall mobile phone market is growing faster than previously forecast thanks to a stronger-than-expected first half of the year driven by strong gains in emerging markets and the sub-$200 smartphone segment.  IDC previously projected 5.8% growth for the year.  Vendors are now predicting to ship more than 1.8 billion mobile phones this year, growing to over 2.3 billion mobile phones in 2017.
Worldwide smartphone shipments are forecast to grow 40.0% year over year to more than 1.0 billion units this year. High smartphone growth is the result of a variety of factors, including steep device subsidies from carriers, especially in mature economic markets, as well as a growing array of sub-$200 smartphones.  Total smartphone shipments are forecast to reach 1.7 billion units in 2017.  “Smartphones will represent virtually all of the mobile phone market in many of the world’s most developed economies by the end of 2017″, said Kevin Restivo - Senior Research Analyst with IDC’s Worldwide Mobile Phone Tracker program.

Total mobile applications to be downloaded by 2014 is projected to be 76.9 billion (Source: IDC)

MEDL has led mobile strategy, ideation, development, marketing and monetization for many of the biggest names on the planet – in areas diverse as entertainment, telecom, medicine, education and retail – for such prestigious clients as Hyundai, Taco Bell, Monster.com, The New York Times Company, Medtronic and Telefonica.  The Company enters into partnerships to mobilize and monetize IP with such notable names as Encyclopedia Britannica, Real Madrid, Cheech & Chong and Marlee Matlin.

Experienced Professional Management Team:

Andrew Maltin, CEO Andrew has been featured in Entrepreneur, 944, Success, The Wall Street Journal and The LA Times.  Prior to founding MEDL Mobile, Mr. Maltin has founded and successfully exited several technology ventures.

Dave Swartz, President Dave has overseen the development and design of hundreds of mobile applications.  Prior to MEDL, Dave was a highly awarded ad agency creative director having led creative and strategy for clients in industries such as publishing, banking, multi-unit retail, fast food and healthcare.

Murray Williams, CFO Murray was one of the founding members of Buy.Com, Inc., and was its Chief Financial Officer during a three and a half year tenure in which Buy.com sold over $1 billion in products.

Peter Elkin, COO Peter is the former CFO and Executive Committee Member at NRPI/Auction.com where he helped take the company from $300M to over $3B in annual sales.  Prior, he was CFO for a Computer Reseller taking them from $80M to over $300M in annual sales.

Ted Francisco, Brand Integration Ted has led media, account management and strategic planning for clients in the automotive, consumer packaged goods, fast food, healthcare and business-to-business space at worldwide agencies such as TBWA Chiat/Day, FCB, Y&R and Campbell-Ewald.

Jon Orlando, Talent Relations Jon spent his youth with the likes of Jackie Gleason, John Wayne, Jerry Lewis, Frank Sinatra, Dean Martin and even Elvis Presley.  Prior to MEDL, Jon has produced events at The Superbowl, Kentucky Derby, Sundance, SXSW, NCAA Final Four and The Grammys.

Capital structure:
Outstanding – 44,405,001 shares of common stock as of last 10Q filing
More than 20 million shares are held between the founders of the company leaving not too large of public float.

Between July 5, 2013 and July 12, 2013, Hang With, Inc. subsidiary raised an aggregate of $1,923,501 from the sale of 1,282,334 shares of Hang With, Inc. common stock to accredited investors in a private placement.  As of August 9, 2013, the Company owned 77.42% of the issued and outstanding capital stock of Hang With, Inc.
Capital raise of $2 million from Saudi Arabia’s Alireza Holding Co in series A round puts valuation of about $20 million for Hang With, Inc.

Further capital raise has been happening as seen from recent investment made by Curtis Jackson “50 Cent” which could reduce the ownership of MEDL Mobile in Hang With, Inc., although it should greatly enhance the prospects & valuation going forward as the business grows.

Key client list for MEDL Mobile for its licensing of technology & custom app development business: (http://www.medlmobile.com/studio/clients)

  • Advertising Agencies
    DGWB
    ISM Strategic Marketing
    OMD
    yMarketing
    Campbell-Ewald
    Consumer Brand
    Candies/Kohl’s
    Dayna Decker
    Emirates Airlines
    Experian
    Hyundai
    Monster.com
    Nixon
    Taco Bell
    Teleflora
    Wienerschnitzel
  • Education
    Encyclopedia Brittainica
    Iowa State University
    Marlee Matlin
    Walter Foster Publishing
  • Emerging Technologies
    Mobile Courtroom Evidence Platform
    Telefonica Blue Via
  • Entertainment
    Cheech & Chong
    Disney Theatrical
    DJ Pauly D
    Focus Features
    Live Hot Spot NYC
    Marlee Matlin
    Media Rights Capital
    The Nasty A** Honeybadger
    Phil Hellmuth
    Rampage Jackson
    Real Madrid
    Sarah Silverman
    Ted from Universal
  •  Healthcare
    Kaiser Permanente
    Medtronic
    OrthoAlign
    United Health
    Publishing and Content Distribution
    About.com
    Los Angeles Duplication & Broadcasting – case study
    Mnet America
    New York Times Company
    OC Register
  • Tele Communications
    Telefonica
    Verizon
  • Video Game Development
    Boxhead: The Zombie Wars
    Journey to Real Madrid Pauly D’s Beat Dat Boardwalk
    The Nasty A** Honeybadger – case study
    The National Rifle Association

    MEDL’s patent-pending Mobile Brain is a powerful analytic engine which classifies users according to their Mobile Lifestyle via a Detailed Anonymous Profile (D.A.P.) and learns to make recommendations based on a predictive algorithm.

 

Hang With, Inc. (Hang W/) subsidiary is an exciting venture with huge potential – Details about it:
MEDL Mobile is the majority owner of “Hang W/” – a global, mobile, social media platform that connects and shares via live-streaming video and will be monetized by fully integrated advertising. The Hang W/ mobile app connects people around the globe through live streaming video and simultaneous chat — allowing hundreds, thousands and eventually millions of users to “hang with” their favorite people in real time.  After several years of development efforts the patent pending technology has been rolled out.  The platform was released via a private beta in January, 2013, released to the public in March, 2013 and quickly scaled to nearly 2,000,000 broadcasts in its first six months.  MEDL is the majority owner of Hang W/ with more than 75% ownership.

  • Here’s how Hang W/ works:
    1) The Broadcaster launches the app and hits START BROADCASTING.
    2) The streaming video feed is compressed and sent to company’s remote, secure cloud server.
    3) Anyone following that Broadcaster receives a custom push notification saying the Broadcaster “wants to Hang W/ you.”
    4) Followers view an unskippable pre-roll advertisement before viewing the LIVE feed.
    5) The Broadcaster is streamed LIVE for three minutes to the Followers – who can chat simultaneously with the Broadcaster and each other.
    6) Each session ends with an action oriented, clickable, trackable post-roll banner.
    Anyone can be a Broadcaster.  Anyone can be a Follower.
    Broadcasters – Spontaneous or planned broadcasts.  Alert followers w/push notification, on Facebook and via Twitter. Chat live with followers.  Ability to be private or block followers.  Save broadcasts as Private or Public.
    Followers – Receive notification when followed broadcasters go live.  Can chat live with the broadcaster and other users.  Share to Facebook and Twitter.  View a broadcasterʼs public archives. “Like” broadcasts.

    The opportunities to Hang W/ are endless as it could be used for a lot of exciting things for example:
    At an exotic location – Show off new talent – Share exciting news – Talk about Yummy dish you cooked – Share a hot stock pick – Launch of new product – On the red carpet – From a premiere – At a jam session - On location – Warming up / Cooling down - In the break room – Breaking news – At the gym – Backstage – Famous friends – Between takes - In the field - On the field – Going to an event – Free-styling lyrics – On a date – On the road – At the crib – The locker room – With family – Live interviews – Releasing new music – Share your holiday greetings – Before bed, just to say gʼnight.

    Hang W/ statistics:
    650,000+ Installations
    Nearly 2,000,000 Live Broadcasts
    More than 11,000,000 User Sessions
    Over 285,000,0000 “Hang W/ me” Notifications

     75+ Celebrities using currently and the list is growing fast - Some of the Key Celebrities using Hang W/  (http://www.hangwith.com/new.php)
    50 Cent
    Cody Lindley
    Jamie Kennedy
    Frank Trigg
    Shaun T
    Judah Rich
    Josh Reddick
    Marlon Byrd
    Kaskade
    Kris Benson
    Lil Durk
    Mark Ballas
    Jessica Sanchez
    Dick Clark Productions
    Jordin Sparks
    Ali Landry
    Amy Robbins
    Cheech & Chong
    Amy Vaughn
    Ocho Cinco
    Catt Sadler
    Chief Keef
    Chris Spencer
    Claudia Jordan
    Christian Coma
    Coco Crisp
    Tori Spelling
    Dean McDermott
    MYNC
    Mo Greene 
    Mia St. John 
    Soulja Boy
    Mike Chandler
    Terrell Owens
    Printz Board
    Timbaland
    Sara Underwood
    Tyson Gay
    Shanola Hampton
    Lucy Hale
    King Louie
    SHOWstudio
    Few of the many exciting recent happenings with Hang With, Inc
    1) Partnership with Westfield to create Live Mobile Shopping Experience by creating a Shopping Channel on the platform
    With more than 453 million consumer visits annually and 47 Westfield Shopping Centers across the United States, Westfield represents a diverse group of shoppers, retailers, events and experiences. The partnership will bring a select group of Hang W/ “Shopping” broadcasters into Westfield locations for special access behind the scenes, at concerts, fashion shows, product releases, sales and other retail events.
    2) Curtis “50 Cent” Jackson Invests in Hang W/
    Recently famed music artist, actor and businessman, Curtis “50 Cent” Jackson, has made an undisclosed financial investment in HangWith, Inc. Concurrent with his investment, Jackson has agreed to use Hang w/ as his exclusive live streaming video interactive mobile platform.  Jackson joined the platform in August and has been using it to actively Hang W/ his fans, having created more than 70 broadcasts since signing up about a month ago. In his broadcasts, 50 Cent has released previously unheard music, given sneak peeks of music videos, and brought his fans behind the scenes of his fast paced life. The Grammy-winning artist’s plans for using Hang W/ include producing and releasing the first live-streamed music video on Hang W/.
    Hang W/ is now available on the Google Play Store:
    http://bit.ly/hangwandroid
    Hang W/ is now available on the Apple App Store:
    http://www.hangwith.me/iPhone
    Hang W/ promo video is available here:
    http://bit.ly/hangwpromo
    Learn more at http://www.hangwith.com   

    17 Key Reasons to Invest:
    1)  The mobile space is experiencing explosive growth as the number of smart phones in use currently exceeds over 500 million.
    2)  The number of smart phones shipments are projected to be 1.7 billion by 2017.
    3)  Total mobile applications to be downloaded by 2014 is projected to be 76.9 billion.
    4)  Operates in mobile technology which is hottest & fastest growing sector with custom app development for corporate clients
    5)  Has strong relationships with brands, entertainment industry leaders, bloggers, journalists, digital influencers and developers.
    6)  Developed a proprietary, patent pending technology.
    7)  Impressive base of partners and clients.
    8)  The library of apps and number of downloads is growing.
    9)  Each end user represents significant lifetime value.
    10) Strong experienced management team.
    11)  Hang W/ mobile app has enormous advertising revenue potential as its usage and popularity grows exponentially given famous celebrities coming on board.
    12)  Sales expected to rise to $45 million within next 2 years.
    13) Ground floor investment opportunity in fast growing mobile technology with company’s core focus now on Hang With, Inc. subsidiary.
    14) Hang With, Inc. raised $2 million in Series A round funding closed in July, 2013 from Saudi Arabia’s Alireza Holding Co. which put valuation at $20 million
    15) Hang W/ has potential to enjoy similar growth such as YouTube, Twitter or Snapchat.
    16) Compared to current market value of Twitter at $23 billion and Snapchat at $3.5 billion, Hang With appears to be promising bet for investors that can visualize the enormous potential in the similar mass broadcasting and sharing arena.
    17)  Current market capital of about $12 million leaves ample room for capital appreciation as the management executes its strategy to boost sales & generate profits.

    In July the company’s Hang With Inc. subsidiary did Series A funding raising $2 million cash from Saudi Arabia’s Alireza Holding Co. which made valuation at $20 million.  So current market capital of $12 mln or less makes MEDL very undervalued.
    http://www.itproportal.com/2013/08/24/spotlight-on-hang-w-social-medias-newest-darling-is-a-real-time-video-platform-valued-at-20m/

    For more information about MEDL Mobile, please visit www.medlmobile.com CEO discussing about company and its prospects:  http://www.redchip.com/visibility/conferencePages/virtualconferences/oct2013/virtualmainConference.asp?from=mmbanner#video

  • Disclosure:  All the information on this report or on this website is believed to be true based on our knowledge.  Please use expert financial advice in making any investment decisions.  We do currently own a long position in the stock which may change without any further notice.  We do not receive any compensation from the management of the company we recommend.  We are very selective of our stock pick based on 20+ years of stocks investment experience.  Financial markets are very volatile and stock prices varies based on numerous factors.  We strongly advice you to do your in depth due deligence on the company.  You should seek a professional financial expert advice for investments.

IntelGenx (IGXT :$0.60) – Drug Delivery company focused on Oral method with strong pipeline of pharma drugs

6th August, 2013

New HOT Stock pick: IntelGenx Corp. (IGXT: $0.60)

IntelGenx has an FDA approved drug (Fortivo XL) on the market and several in pipeline for various indications with multi billion dollar market for some of the other approved drugs on the market for the treatments.  Company has many good partnerships in place with companies like PAR Pharma, RedHill BioPharma, Edgemont Pharmaceuticals and others.
IntelGenx is uniquely positioned to capture a huge marketshare given its large portfolio of patents in Drug Delivery Systems.  It has 3 key methods:
1) VersaTab – Controlled release tablets
2) VersaFilm – Rapidly disintegrating film
3) AdVersa – Mucoadhesive tablet

Company has NO debt and has sufficient cash for near term giving its current burn rate.
Current capital structure includes:

Shares outstanding: 58 Million
Insider Ownership: 22%

Company website:
Management Team: http://www.intelgenx.com/aboutus/mngmt.html
Board of Directors: http://www.intelgenx.com/aboutus/board.html
Product Pipeline: http://www.intelgenx.com/pipeline/chart.html
Company Presentation:  http://www.intelgenx.com/investors/presentations.html

Targets:
Near term: $2 – $3
Long term: $5+

About IntelGenx:
IntelGenx is a drug delivery company focused on the development of oral controlled-release products as well as novel rapidly disintegrating delivery systems. IntelGenx uses its unique multiple layer delivery system to provide zero-order release of active drugs in the gastrointestinal tract. IntelGenx has also developed novel delivery technologies for the rapid delivery of pharmaceutically active substances in the oral cavity based on its experience with rapidly disintegrating films. IntelGenx’ development pipeline includes products for the treatment of severe depression, hypertension, erectile dysfunction, benign prostatic hyperplasia, migraine, insomnia, idiopathic pulmonary fibrosis, allergies and pain management. More information is available about the company at www.intelgenx.com

Disclosure:  All the information on this report or on this website is believed to be true based on our knowledge.  Please use expert financial advice in making any investment decisions.  We do currently own a long position in the stock which may change without any further notice.  We do not receive any compensation from the management of the company we recommend.  We are very selective of our stock pick based on 20+ years of stocks investment experience.  Financial markets are very volatile and stock prices varies based on numerous factors.  We strongly advice you to do your indepth due deligence on the company we recommend and seek a professional expert advice.

Blue Calypso (BCYP :$0.135) – developer of Digital Innovation Solutions for Social Media Marketplace

5th August, 2013

New HOT Stock pick: Blue Calypso, Inc. (BCYP: $0.135)

Company website: http://www.bluecalypso.com
Management Team: http://www.bluecalypso.com/Pages/Informer/ManagementTeam.aspx
Board of Directors: http://www.bluecalypso.com/Pages/Informer/BoardOfDirectors.aspx
Advisory Board: http://www.bluecalypso.com/Pages/Informer/AdvisoryBoard.aspx

Targets:
Near term: $0.50
Long term: $1.50 – $2.00

About Blue Calypso, Inc.

Blue Calypso, Inc. (BCYP) develops digital innovation solutions and services for the social media marketplace using its patented IP portfolio. The company enables businesses to employ digital advertising to share and socialize brand content as well as track performance, monitor engagements and gather robust analytics – all at lower costs than traditional marketing. Already, Blue Caylpso has attracted a handful of large, well-known consumer facing companies in automotive, retail, travel and consumer goods. Blue Calypso licenses its IP in addition to offering digital innovation services and solutions including SOCIALECHO™, EMGAGE™ and POPSHARE™. For more about the company please visit www.bluecalypso.com

An interesting article by someone on Seeking Alpha website that shows why this company makes an interesting investment choice given they have patent infringment lawsuits agains several companies including Living Social, Yelp, Groupon, Four Square, etc.
http://seekingalpha.com/article/1450391-blue-calypso-new-multi-bagger-with-cases-against-yelp-groupon-and-livingsocial?source=yahoo

Some of the customers of Blue Calypso include:
American Express
Hotels.com
Motorola
JC Penney
Ford
Oreo
Travelocity

Founded in 2009, Blue Calypso is a digital word-of-mouth technology and marketing company whose mission is to help brands leverage customer relationships to increase brand loyalty and drive revenue.
Consumers trust the recommendations of friends, family and colleagues more than any other form of advertising. Our patented, digital word-of-mouth technology complements any client marketing campaign/promotion and helps brand advocates share campaign messages through their social communities.
Blue Calypso’s technology solutions help brands engage with their existing consumers to drive referrals. This engagement process drives advocacy, amplifies awareness and gives brands the power to shorten the path to purchase.

Company Press Releases:  http://www.bluecalypso.com/Pages/news/news-and-press.aspx

Important Upcoming Events to keep an eye on:

Blue Calypso’s patent infringement lawsuit filed on August 24, 2012 against LivingSocial, Inc. has resulted in a Claim Construction Hearing, or “Markman” hearing set for August 27, 2013. The Markman hearing is an important event in a patent lawsuit. It is a pre-trial hearing where the presiding judge will have an opportunity to hear the relevant terms and claims involved in the case from both parties.  The Claim Construction findings can often encourage settlement and in some instances, can suggest the likelihood of a particular outcome. Blue Calypso believes that LivingSocial, Inc. may be infringing on two of its US patents, 7,664,516 and 8,155,679, which cover peer-to-peer advertising. The methods employed by both patents quantify Blue Calypso’s core technologies, which deliver a rich brand advocacy platform positioned for today’s social and mobile adoption.

November 7, 2013 for the claim construction or Markman hearing in its patent infringement cases against five defendants, including Groupon (NSDQ: GRPN), IZEA, (OTCQB: IZEA), Foursquare, MyLikes and Yelp (NSDQ: YELP). All of these cases are pending in the United States District Court for the Eastern District of Texas.

Blue Calypso believes that Groupon, IZEA, Foursquare, MyLikes and Yelp are infringing two of its US patents, 7,664,516 and 8,155,679, which cover peer-to-peer advertising.

Disclosure:  All the information on this report or on this website is believed to be true based on our knowledge.  Please use expert financial advice in making any investment decisions.  We do currently own a long position in the stock which may change without any further notice.  We do not receive any compensation from the management of the company we recommend.  We are very selective of our stock pick based on 20+ years of stocks investment experience.  Financial markets are very volatile and stock prices varies based on numerous factors.  We strongly advice you to do your indepth due deligence on the company we recommend and seek a professional expert advice.

U-Swirl (SWRL) – Frozen Yogurt Franchise company with 75+ stores across USA

17th July, 2013

New HOT Stock pick for summer: U-Swirl Inc. (SWRL: $0.50)
Company website:
http://www.u-swirl.com
http://www.yogurtini.com/

Targets:
Near term: $1.25
Long term: $2.50 – $4

U-Swirl is the only publicly traded company in the Frozen Yogurt business and has been growing rapidly.  This year should be one of the best in company’s operating history given many factors but most important being the super hot long summer all over in many parts of the USA.  You can not really compare this stock with other high fliers in the food industry and their valuations but given this is in the food related franchise industry in a way you could put it in perspective.  Valuations of other well established players in the food franchise industry are pretty amazing.  Although direct comparison of U-Swirl with any others listed below would be like comparing Apples to Oranges but the point to be emphasized is they still both are fruit (Food industry).  We believe current low market capital of about $7.5 mln for U-Swirl, Inc makes this an attractive investment opportunity leaving ample room for capital appreciation in coming years as the company & premium frozen yogurt industry flourishes.

7 key reasons we like U-Swirl:
1) Profitable
2) Growing Sales
3) No debt
4) Strong management team holding about 70% of equity
5) Healthy popular food/dessert concept that has generated enormous craze amongst people of all ages.
6) U-Swirl, Inc is currently the only publicly traded company in the Frozen Yogurts/Desserts industry.
7) Huge growth opportunities within US & International markets

Some publicly well known and traded companies in the food industry:

Panera Bread (PNRA: $185+) with approximate market capital of $5.4 billion
Chipotle Mexican Grill (CMG: $400+) with approximate market capital of $12.6 billion
Yum Brands (YUM: $72+) with approximate market capital of $32.2 billion
Green Mountain Coffee (GMCR: $73+) with approximate market capital of $11 billion
Starbucks Corp (SBUX: $68+) with approximate market capital of $51.5 billion
Darden Restaurants (DRI: $50+) with approximate market capital of $6.4 billion

U-Swirl has low equity float and 60% of the outstanding shares are owned by Rocky Mountain Chocolate Factory Inc. (RMCF) which is a profitable divident paying company.

Capital structure:
Total Outstanding shares: 14,402,088 out of which only 60% is held by Rocky Mountain Chocolate Factory Inc (RMCF) or 40% which about is 4,900,401 is U-Swirl (SWRL).  Almost 70% of the stocks are held between parent company and insiders of SWRL leaving a very thin float in the market.

It is BullInvestor.com opinion that management will continue rapid expansion including strategic acquisitions.  One such name to acquire would be privately held “Sweet Frog”.  Although there are numerous other privately held names in the premium Frozen Yogurt industry that could fit well with strategic acquisition targets such as Yogurtland, Beaches, Fresh Berry, etc.
Also a possible near term listing on Nasdaq small cap could attract investments from many new retail investors, hedge funds and small cap mutual funds.

U-Swirl, Inc. recently reported its first profitable quarter. Details of earnings
http://finance.yahoo.com/news/u-swirl-inc-reports-profitable-120000363.html

HENDERSON, NV–(Marketwired – Jul 11, 2013) – U-Swirl, Inc. (OTCQB: SWRL) (“the Company”), parent to U-SWIRL International, Inc., which through its subsidiary owns and franchises U-SWIRL Frozen Yogurt® cafes, today announced results of for the quarter ended May 31, 2013 (first quarter of FY2014).

FIRST QUARTER HIGHLIGHTS

  • Total revenue increased 114 percent to $1,717,000 in the first quarter of FY2014, compared with total revenue of $802,000 in the quarter ended May 31, 2012.
  • Company-owned frozen yogurt cafés generated $1,378,000 in net sales, which represented a 104 percent increase when compared with the first quarter of the previous fiscal year.
  • Franchise royalties and fees rose 171 percent to $339,000 in the most recent quarter, compared with $125,000 in the prior-year period, primarily due to the acquisition, from Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF), of certain assets related to frozen yogurt cafés in January 2013.
  • Operating income improved to $182,000 in the three months ended May 31, 2013, versus an operating loss of ($77,000) in the prior-year quarter.
  • Net income for the first quarter of FY2014 increased by $245,000 to $168,000, compared with a net loss of ($77,000) in the first quarter of the previous fiscal year.
  • On a diluted per-share basis, the Company earned $0.01 in the most recent quarter, compared with a net loss of ($0.02) per share in the year-earlier period. The weighted average number of common shares outstanding, on a basic and diluted basis, totaled 14,402,088, versus 4,900,401 a year earlier. The increase in shares outstanding was primarily due to the shares issued to Rocky Mountain Chocolate Factory, Inc. in January 2013 in partial payment for certain Aspen Leaf Yogurt and Yogurtini assets.
  • Working capital increased from a negative ($61,000) as of February 28, 2013 to $202,000 as of May 31, 2013.
  • Cash on hand increased from $359,000 as of February 28, 2013 to $453,000 as of May 31, 2013
  • New U-SWIRL Frozen Yogurt cafés were opened by franchisees in Houston, TX; Dupont, WA; and Wayne, NJ during the first quarter of FY2014. The first co-branded U-SWIRL Frozen Yogurt / Rocky Mountain Chocolate Factory store was opened by a franchisee in Collierville, TN in March 2013.

MANAGEMENT COMMENTS

“We are delighted to report strong operating results for the first full three-month period following our acquisition of self-serve frozen yogurt cafés, franchise rights, and related assets from Rocky Mountain Chocolate Company, Inc. in January 2013,” stated Ulderico Conte, Chief Executive Officer of U-Swirl, Inc. “This acquisition increased the number of stores operated and/or franchised by U-Swirl by more than 100% and provided us with the ‘critical mass’ to achieve profitability during the most recent quarter. The integration of these assets into the U-Swirl organization has proceeded smoothly, and we are currently transitioning a number of Aspen Leaf Yogurt and Yogurtini stores to the U-SWIRL Frozen Yogurt brand.

“In March, we opened our first U-SWIRL Frozen Yogurt / Rocky Mountain Chocolate Factory co-branded café in Collierville, Tennessee. We believe that, by offering consumers delicious frozen desserts and gourmet chocolate products in a single location, our cafés can capitalize upon the offsetting seasonal demand patterns for frozen yogurt and chocolate. Demand for frozen yogurt typically peaks in the hot summer months, while demand for gourmet chocolate products is stronger during the fall, winter and spring seasons. We are optimistic that co-branded stores will experience greater stability in seasonal sales, while offering customers a more exciting selection of desserts on a year-round basis.

“We remain confident that U-Swirl is now positioned to pursue a store expansion program and consolidation strategy that can prove highly rewarding to our shareholders in coming years. The self-serve frozen yogurt segment of the $6 billion away-from-home frozen desserts market is highly fragmented, and we have identified a number of industry participants that do not appear to have the financial and management resources to achieve sustainable profitability and growth. These and other frozen yogurt chains may represent acquisition opportunities for U-Swirl, and we are currently in discussions with a number of frozen yogurt café operators and franchisors regarding potential strategic relationships.

“As we move through the second and third quarters of Fiscal 2014, during which demand for frozen yogurt is seasonally strong, we are optimistic that our financial and operating results will continue to compare favorably with prior-year periods. Based upon currently available information, we expect Fiscal 2014 to be a record year for the Company,” concluded Conte.

About U-Swirl, Inc.

U-Swirl, Inc. is an operator and franchisor of self-serve frozen yogurt cafés that operate under the following names: U-SWIRL Frozen Yogurt, Aspen Leaf Yogurt, and Yogurtini. The cafés offer frozen yogurt in 20 non-fat and low-fat flavors, including tart, traditional, and no-sugar-added options, along with fresh sorbet. Approximately 70 toppings such as fresh fruit, sauces, candies, and granola are available to customize each serving of yogurt to the customer’s individual taste.

In January 2013, the Company acquired frozen yogurt café assets, franchise rights and certain other assets from Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) in exchange for a 60 percent controlling ownership interest in the Company, certain warrants and notes payable.

U-Swirl, Inc. is headquartered in Henderson, Nevada, and its common stock trades on the OTCQB under the symbol “SWRL”. As of May 31, 2013, the Company and/or its franchisees operated 71 self-serve frozen yogurt cafés in 23 states.

Disclosure:  All the information on this report or on this website is believed to be true based on our knowledge.  Please use expert financial advice in making any investment decisions.  We do currently own a long position in the stock which may change without any further notice.  We do not receive any compensation from the management of the company we recommend.  We are very selective of our stock pick based on 20+ years of stocks investment experience.  Financial markets are very volatile and stock prices varies based on numerous factors.  We strongly advice you to do your indepth due deligence on the company we recommend and seek a professional expert advice.

Welcome to BULL Investor

Welcome to BULL Investor

Who doesn’t like to make money?  If you are looking for some great capital market investments you have come to the right place.  We will be sharing some hot stock picks with great investment appreciation potential.  Please continue to visit this site frequently as we will be updating on a regular basis.  While we have just started to build this site, we will have more content in coming days/weeks.  Thank you and Happy Investing,

BULL Investor

SIGN UP and become a member of our site to get our new hot picks and updates.

Questions or Comments?  Send us an email: BullInvestor@Inbox.com