Found this little gem:
Ufood Grill - Home ticker is UFFC.ob
It hit a low in the .09 - .10 area due to one of it's restaurant's closing down in August.
Technically, it popped on higher than usual volume, thru it's upper resistive trendline at .11 - and banged its head on the 50dma at .13
UFFC - SharpCharts Workbench : StockCharts.com
Technically, this is considered a buy if it can remain at or above the .13/share level and ride the 50dma as the new level of support. The 200dma is at .186 so that would be the first target for a 25% gain. What would be nice is for some news to hit, such as an announcement that another airport location is slated to open.
See news:
UFood Restaurant Group Closes Salt Lake City Restaurant - Yahoo! Finance
Ofcourse they are blaming sluggish restaurant sales, due to the recession etc etc -like everyone else.
What I've noticed, however, is that this particular restaurant is focusing on opening up in airport terminal's (which is huge volume & u know people pay up big for food at airports cuz they just dont have a damn choice. It's either pay up or starve)
Focus on their August 3rd announcement that stated they were approved for a Space Use Permit at Oakland International Airport. And they signed another lease for their SECOND LOCATION at Boston Logan Airport. They already have another location at the Dallas/Fort Worth International Airport (7th busiest airport in the world).
This from the August 3rd PR:
George Naddaff, Chairman and CEO, said, “We’re pleased that UFood will be in another airport. This is a testament to the traction we’re getting from nontraditional locations such as airports and hospitals, and we see opportunities to expand into other nontraditional locations such as colleges and travel plazas. Earlier this year we were very pleased to be recognized as the “Best New Food & Beverage Concept” in the Small Food & Beverage Operator category by Airport Revenue News’ 2009 Best Airports & Concessionaires competition. The UFood concept is increasingly being recognized for its ability to answer the needs of consumers who are looking for an affordable, convenient, quick-service restaurant offering ‘better-for-you’ and delicious food choices. The Oakland Airport location will be our fourth nontraditional restaurant to open and we’re working hard to continue this growth.”
UFood is EXPANDING in places where customers are literally "forced" to pay higher prices for food (as with all airport restaurants or ANYTHING purchased at an airport). Folks are just used to that, and they will pay up, as they always have.
Nonetheless, I've noticed one thing concerning the chart on this stock. It's been in a downtrend for months, trading below all the moving averages (13, 20 and 50dma) and using the 13 and 20dma's as areas of resistance.
See this chart:
Symbol Lookup from Yahoo! Finance....
Each time UFFC.ob traded up to its 13 and 20dma line, it failed to breach both and maintain above those resistance levels.
However, note the CHANGE IN THE TREND over the past couple of weeks:
Symbol Lookup from Yahoo! Finance....
See how on September 17th, UFFC.ob traded over its 13 and 20dma resistance line and actually held above it, and is STILL holding above them both.
THIS IS A FIRST, and I have a feeling that technical traders are waiting for UFFC.ob to trend up and over it's 50 day moving average at .12 - .13 and MAINTAIN that breakout level, using the 50dma as a NEW level of support.
This is called a trend reversal, and its what we are currently experiencing.
Obvious areas of resistance are at the .15 and .20 area but once thru those on higher than normal volume, and it's my opinion we have a runner in the works here.
Triple bottom at .10 from August 14th thru Sept 11th, followed by an UPSIDE triple moving average breakout.
This comes at perfect timing, shortly after UFFC announced they signed the lease for their second location at Boston Logan Airport. UFood Grill has a third airport location at Dallas/Fort Worth International Airport, the seventh busiest airport in the world.
This is a testament to the traction they are getting from nontraditional locations such as airports and hospitals, and I bet they begin to expand into other nontraditional locations such as colleges, theme parks, etc.
Everything is finally coming into alignment for UFood Restaurant Corp. The fundamentals are improving and the technicals have already been confirmed - so there's nothing left to do but to watch and wait.
If you havent taken position yet, then perhaps its prudent to sit idle and see if all 3 moving averages remain support. Once this is confirmed, technically, stocks tend to ride above their moving averages for a considerable length of time, with minor pullbacks beneath the upper ones here and there.
In my opinion, UFFC.ob is looking more and more like a buy from both a fundamental and technical vantage point.
A Fast Growing Franchise Stock Under One Dollar - Video
UFFC.ob video clip - watch it
Keep in mind, the video was made sometime in '07 - .08 and CEO predicted the restaurant would one day be in Airports & hospitals etc.
The stock went from $2/share down to .10 since then haha
So i'm jumping in here
Trading on the OTCBB stock exchange, UFood Restaurant Group, Inc. (UFFC.OB) has 12 fast-casual food restaurants. The fast food UFood Restaurant Group suggests to clients differs from the ordinary one because meals are made from nutritious products that retain healthy attributes.
A Fast Growing Franchise Stock Under One Dollar - Video
George Foreman = UFFC.ob
"Im here with a knock out idea for your portfolio"
-hahaha, yea, "knock out" - as the stock fell from $2/share down to .10
-FOR THE FIRST TIME, its popped over all its moving averages 10, 20, 50 -- worth a gamble
Quotes for UFFC.OB - Yahoo! Finance
black line is the 50dma which has been breached
-market makers have no inventory of stock to sell, id imagine - as the volume on the triple bottom to .10 has been nill
SEC Filing Document For UFOOD RESTAURANT GROUP, INC.: 10-Q, Sub-Doc 1, Page 5&link=http%3A//quotemedia.10kwizard.com/filing.xml%3Frid%3D12%26ipage%3D6461992%26DSEQ%3D1 %26SQDESC%3DSECTION_BODY%26doc%3D1&cp=off
Current assets:Cash and cash equivalents $ 4,092,431
Property and equipment:1,495,247
Total assets $ 7,244,700
Total liabilities 5,584,782
Common stock, $0.001 par value, 300,000,000 shares authorized, 35,199,834 shares issued and outstanding
Operating loss (1,123,437 )
Obviously, thats a loss of .03/share
Net cash used in operating activities 6 months (1,719,467 )
Net cash provided by financing activities 5,050,906
*current as of June 28, 2009
From UFFC.OB filings:
"Subject to certain conditions, the Company has the right to force conversion of the Debentures into shares of Common Stock. The Company has filed a registration statement with the Securities and Exchange Commission covering all shares of Common Stock issuable upon conversion of the Debentures and/or exercise of the 2009 Warrants."
"General and administrative expenses for the three months ended June 28, 2009 decreased by $1,710,083 or 60.6%, to $1,113,787 from $2,823,870 for the three months ended June 29, 2008. The decrease in general and administrative expenses was primarily due to a significant reduction on investor relations and public relations expenses, stock-based compensation and payroll expenses"
"Our net loss for the six months ended June 28, 2009 decreased by $2,920,073, or 59.8%, to $1,959,083, from $4,879,156, for the six months ended June 29, 2008. Our net loss increased primarily due to the decrease in general and administrative expenses and advertising, marketing and promotion expenses"
"Cash and cash equivalents and restricted cash at June 28, 2009 were $4,160,160 compared to $1,205,041 at December 28, 2008.
"During the six months ended June 28, 2009, the Company sold $5,874,000 of Senior Secured Convertible Debentures (the Debentures) in a private offering to accredited investors. The Company received net cash proceeds of approximately $4,916,815. The debentures bear interest at a rate of 8% and are due three years from the date they are issued. The Debentures are convertible into shares of common stock at $0.13 per share"
-So there is ZERO reason why the debenture holders would convert their stock at .13 when its trading LOWER than that.
DO U SEE MY POINT?
"Historically we have funded our operations, working capital requirements, acquisitions and capital expenditures with proceeds from the issuance of debt and equity securities. We believe that cash flow from operations and proceeds from the issuance of debt and equity securities will be sufficient to fund our operations and capital expenditures for the next twelve months."
TWELVE MONTHS
-there is no "Going Concern" notice within their filings, which is good
-Auditors feel they have enough cash and ability to obtain financing.
That's all I can come up with, I think this is a great play from these prices and its well on it's way to $1+.
UFFC.ob UFood Restaurant Group, Inc.
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