I love reading your posts, I ended up with a substantial position in GCFB thru a private placement deal from 2 years ago but really know nothing about evaluating stock. I've been to the resteraunts and really liked them so kept the stock. I'm primarily interested in the real estate syndications (but if they go broke that would be a huge pain). I find your posts most informative and am still holding my stock.
Thanks for the compliment! I visited a location and really liked it. I visited it again and liked it even more. I by no means am an expert on these things but have learned alot by reading things and then re-reading them over and over again until I understand them. (or misunderstand them!) I've been in the market about 6 years but until I bought stock in this company I've never taken the time to fully analyze a company and read the boring details of a 10Q. Why I picked this one I don't know - maybe because it's small enough that I actually felt that I could get my hands around it so to speak. I've learned alot thus far, and it's made me a better investor.
The partnership deals look like they're really going to work out for you. The stock - maybe even better! As we go forward things are beginning to become clearer. It's going to be a fun ride.
Here is the main reason why KONA deserves a higher valuation than GCFB:
In 2007 both companies are projected (on the yahoo finance page) to grow revenues by $28 million. But GCFB will require 33% more new stores than KONA to generate that same growth (8 vs 6). KONA is a more powerful growth engine, hence the higher valuation.
One other thing. The two companies have essentially the same enterprise value (market cap minus cash plus debt). So they are not really valued all that differently right now. Kona at $97 million and GCFB at $93 million.