The Hottest Penny Stock of the week starts now! Wow, talk about a double whammy. First, BTHR releases huge news about 1,900% revenue growth after Friday’s close and traders first chance to react is in about an hour from now. Then, a major analyst put out a report last night giving BTHR, currently 51 cents, a price target of $1.62; more than TRIPLE the current price. And, trader’s first chance to react to this is about an hour from now.
Now that is a Red-Hot trading setup.
Last night, the company issued a press release – unusual to see on a Sunday. They wanted to let investors know about a research report that gave a price target of $1.62 for BTHR, a 225% potential gain from Friday’s close of 51 cents.
According to the analyst, the research report was sent to a network of more than 5 million retail investors. That’s right, it seems as though last night new potential traders and investors, numbering in the MILLIONS, found out about BTHR, their huge revenue news, and their impressive new price target.
BTHR is off to a very promising start. During the past quarter, BTHR completed the acquisition of Philly Westshore Franchising Enterprises, Inc., and Bobby V’s Original Westshore Pizza, LLC. The company now franchises 37 pizza and sandwich sports bars in Florida and Ohio and operates one 83 seat pizza and sandwich sports bar in Tampa, Florida. Franchises are still available and the company has the potential to go nationwide.
Pizza and sports bars are popular and these are businesses that have the potential to deliver strong cash flow. According to the most recent data from the Census Bureau, sales at restaurants and bars are growing almost 7% a year. Despite a bad economy, people seem to like going out. And sports bars are one of their top destinations – about a quarter of all bars are sports bars. Pizza is also a big growth industry and has been a great investment. Americans buy more than $30 billion of pizza every year. In addition to loving pizza itself, investors really seem to like stocks in this sector.
While eating about 350 slices of pizza a second, traders have been chasing after a pizza stock and made Pizza Inn (PZZI) one of the biggest winners of 2011. PZZI is up more than 225% over the last twelve months. Pizza giant Domino’s Pizza (DPZ) is up 125% over the last year, and these two stocks make the 42% gain of Papa John’s (PZZA) over the past twelve months seem lackluster. Herman Cain may be out of the race, but the only thing the pizza industry is “harassing” are people who doubt its profit potential.
Those are incredible numbers, especially in a down market and economy. I must admit I had no idea about the profitability of pizza and pizza companies until I did some research for BTHR’s industry. It’s truly a sleeper sector hiding some phenomenal gainers.
Until I found BTHR, I did not realize that pizza is a hot stock market sector right now. According to CNBC, investors tend to like the glamour of tech stocks or the safety of dividends. Turns out boring companies can be a recipe for big stock market profits. All it seems to take is a catalyst to catch investor attention and small, “boring” companies can become the biggest overall winners.
With BTHR, the catalyst could be the news they released after Friday’s close…all weekend long, investors have had a chance to see that their sales grew by nearly 1,900% in the quarter that ended November 30. Earnings numbers won’t be out for at least a few weeks, but revenue totaled more than $670,000 in the quarter, which (if other quarters are equal) is an annual rate of about $2.7 million.
This is also a company with a long history of having revenue to report. Recently acquired Westshore Pizza has been around since 1994, bringing “The Taste of Philly” to Florida. The company has a 17 year operating history, and has survived two recessions.
BTHR has an even longer history – company founder Joe Petralla has been at the helm of the company since the early 1980s. To accelerate the growth of his company, Petralla turned to outside professional management. This is often a sign that a company founder values growth and wants to increase shareholder value. It could mean that BTHR is ready to become a large player in its industry.
In addition to pizza and sandwich shops and a sports bar, BTHR also makes pasta sauces and salsas. These are healthy sized markets – pasta sauce is a $1.5 billion annual market and salsa sales total more than $500 million a year.
The sauces and salsa have a lot of potential and the pizza franchises have a proven track record. In 2010, sales from the pizza franchises were more than $1.5 million. Based on the quarterly number released Friday, it seems like we might see even more revenue from this acquisition this year.
Sales from sauces could grow too. Bella Petrella’s pasta sauces are quite a bit different from the jars of Ragu and Prego that you see on grocery store shelves. BTHR produces gourmet, reduced acid pasta sauces and salsas. Each of their products is all natural, full flavored and diabetic friendly. The company’s products are perfect for anyone, including the 60 million Americans who suffer from acid reflux and have been avoiding tomato based products.
America is aging, and that is probably good news for sales of low acid pasta sauces and salsas. The number of Americans age 55 and older will almost double between now and 2030. It should grow from 60 million people today (21 percent of the total US population) to 107.6 million (31 percent of the population).
According to Dr. Oz, acid reflux is an age-related ache. Obviously there is no more reliable authority than him. But what that really means is that BTHR already has a large potential market and there will soon be almost 110 million potential customers for its pasta sauces and salsa.
To sum up the opportunity: BTHR might be an incredible rapid growth story. It will be offering sauces that reduce the risk of heartburn at franchised pizza restaurants and sports bars as Baby Boomers age and retire. For at home snacking, low acid salsa could deliver even more growth.
Right now, we have a stock in a very hot sector coming off a very bullish week, with two nuclear bomb news announcements that will definitely get investor’s attention.
This morning is the first chance for traders to react to the news of a gain of almost 1,900% in quarterly revenue. BTHR doubled last week and closed at the high four days in a row!
Now if that’s not some serious momentum, I don’t know what is.
The stock doubled last week, before many traders knew about it. Now that a massive amount of traders found out both about the company itself and all of its incredible news we may really see trading volume blast-off like never before.
Grass Roots Research and Distribution just issued a report that is an independent evaluation of the company and sets a price target on BTHR of $1.62 per share.
You can read it here:
Now with this news, BTHR should get VERY hot today. Be sure to use caution, as a huge surge of volume can be unpredictable. I think BTHR should trade very positively, so make sure you see BTHR trading in the way a stock should be trading after releasing a double dose of spectacular news. Be sure to use a very tight stop in case of any surprises, watch out for gaps and book profits when you can!
BTHR has gone Godzilla over the course of a weekend. This sleeper stock silently and stealthily doubled in price in 1 week while no one was looking, trading perfectly by closing at the high almost every single day for a week! Now a hurricane of Schwarzenegger strength news has been released since Friday’s close.
BTHR is the hottest trade in penny stock plays today, watch it like a hawk at the open!
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