market cap is $25mm, it sells 40mm worth of cupcakes a year, how many stores can do that. cupcakes have higher margins it's almost like donuts. key is to get either high revenues in high traffic areas, these are like chocolate, see's candies godiva, etc.
people can give them for gifts on anniversaries, valentines, mothers, day holloween, parties, etc.
very creative. I think at $2.00 it is a sure 25% gainer, if you want to hang on, it is good for even $4.00 if they turn a profit and trade at a simple 10x earnings.
Michael serruya just doubled his money in jamba juice and is putting back the extra profit into CRMB. at this stage he probably sees the potential to do the same with CRMB, the preferred are almost guaranteed to make him money and have enough control where he can push to sell assets or somehow recoup the initial investment.