People love grilled cheese sandwiches. Apparently losing money on it doesn't seem to lower demand for grilled cheese sandwiches.
Posted on 02/16/2015 12:41:32 PM PST by Lorianne
Markets are allowed their petty indiscretions, of course. But these petty indiscretions seem to be piling up.
Bloomberg last week drew attention to the fact that shares of The Grilled Cheese Truck Inc. had commenced trading on the OTCQX marketplace under the ticker GRLD:
“Let’s look at the fundamentals of the Ft. Lauderdale, Florida-based company. Based on the 18 million shares outstanding and a recent stock price of $6 the company has a market value of about $108 million.
No matter how much you like grilled cheese… I can’t see this as a reasonable valuation.
“If you go to the company’s website, you will learn that ‘The company currently operates and licenses grilled cheese food trucks in the Los Angeles, CA area and Phoenix, AZ and is expanding into additional markets with the goal of becoming the largest operator in the gourmet grilled cheese space.’
“[A]ccording to the company’s financial statements, it has about $1 million of assets and almost $3 million in liabilities. In the third quarter of 2014, it had sales of almost $1 million, on which it had a net loss of more than $900,000.”
“I can’t think of a more interesting sign of the old irrational exuberance in equity markets than a publicly traded grilled cheese truck (four in this case) business trading at a $100-million-plus valuation. That sort of thing doesn’t happen unless there is significant excess in the markets.”
Any reference to a company seeking to dominate the “gourmet grilled cheese space” is desperately seeking a twin reference to a slogan from late 1999 (right before the bubble burst):
“Our business strategy is to lose money on every sale but make up for it in volume.”
(Excerpt) Read more at zerohedge.com ...
“Our business strategy is to lose money on every sale but make up for it in volume.”
Sounds like those idiots that use to try and Buy telecom and Internet services from me in the late 90’s.
I never understood the rationale.
I grew up believing you had to make money before embarking on financed growth.
Then again, there is Amazon...
People love grilled cheese sandwiches. Apparently losing money on it doesn't seem to lower demand for grilled cheese sandwiches.
Probably make a fortune if they took EBT cards.
I’m reminded of a financier who got out of the market
before the crash, he said he knew it was time when
his shoeshine boy was giving him stock tips.
They need to sell tomato soup with them though.
Joe Kennedy.
If I owned on I would park outside a medical marijuana dispensary.
Was that who it was? Didn’t remember a name.
Seems to me that Anabaena, the photosynthesizing, nitrogen-fixing algae company ought to get together with the grilled cheese folks and have green cheese trucks.
Nice, but at six to eight bucks for a regular sandwich? Ow! For that price I can score a steak hoagie double meat with provolone and it’s here in 15 minutes...
I think there COULD be enough people to buy truck vended grilled cheese, BUT the name is so generic that nothing stops “The Grilled Cheese Van Man” the “Grilled Cheese Mobile” The “Grilled Cheese and Gourmet Hot Dog Truck”, etc. from shadowing it or at least putting a dent in the profits. Even an extraordinary grilled cheese cold be mimicked if need be.
” “Our business strategy is to lose money on every sale but make up for it in volume.””
Yeah......that’ll work.
There is another company that does just that (I saw them on the show Sharktank). So this isn’t even the only grilled cheese truck company out there. Crazy valuation....one of my 401k funds probably owns a few shares :(
>> If I owned on I would park outside a medical marijuana dispensary.
LOL! Now that’s using your heads!
Or better yet The Grilled Cheese with Bacon samich Truck
will welcome trying a grilled cheese sandwich....
(mcD burgers result in instant barf attacks here)
Yeah, but these are "gourmet" grilled cheese sandwiches!
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