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Special Situation Report:
Date: February 10, 2008
Introduction
Ever hear about Ben & Jerry's? How about The Cheesecake Factory? These are two mom-and-pop companies that started locally, became widely known in their locales, and through expert marketing, they became nationwide franchises. As we all know, both companies produce very tasty and high-quality products that the world can not live without. Now their products are in hundreds of grocery stores, convenient stores, restaurants, and supermarkets throughout the United States and internationally as well. The key ingredient for both of these companies was their commitment to quality and customer service, and both have a strong desire to give back to their communities. In addition, they have a strong brand, share a commitment to operate in a socially responsible way, and provide rewarding careers for their franchisees; making a real difference to the people in their communities. Some very astute investors who were made aware of their growth potential early on, purchased shares of their stock and are now being rewarded handsomely due to the companies' success.
The Tootie Pie Story presents the very same opportunity for success. This story begins in 2004 when Mr. Don Merrill (now the President & CEO of Tootie Pie), who has a history for recognizing and assisting early stage companies whose business opportunities represented significant potential for growth, read an article about Ruby Lorraine “Tootie” Feagan in the newspaper. The article told of Tootie’s many awards and how she had been featured in numerous publications; singing the praises of her wonderful pies. The article also said that Tootie wanted to sell her little Medina, Texas bakery and retire. Seeing an opportunity, Mr. Merrill contacted Tootie and arranged a meeting where he tasted for the first time Tootie’s famous six-pound “Original Apple” Pie. From that meeting, the foundation of the Tootie Pie Company was formed. The story gets more exciting as presented on the Company website.
The potential of the Company has been recognized in the entertainment industry as well. In September 2007, the Company announced that Twentieth Century Fox Home Entertainment selected Tootie Pies to be included along with distribution of the hit movie "Waitress," which features a pie making waitress. The movie was distributed to 174 of its top DVD retailers, some of which include: Netflix, Blockbuster, MGM, Best Buy, Randall’s, Kroger’s, HEB, Albertsons, Hollywood Video, and Target/Dayton Hudson. This is just another illustration of how successful the Company's corporate sales strategy has become under the direction of Mr. Merrill.
So here we have it -- a company with all the elements in place for success with this compelling story. We believe we have found a highly undervalued company that has significant growth potential. The President and CEO of Tootie Pie looks forward to further dialogue with investors about the Company. We are proud to share this very exciting story with our members.
Newsbreaks !
1.) Tootie Pie Company Quarterly Retail Sales Up 60%
Feb. 7 -- The Tootie Pie Company, Inc. (OTCBB: TOOT), a premium baker and seller of high-quality, handmade pies, announced today that it sold in excess of 12,000 pies through its retail/corporate sales channels for the three months ending in December 2007. This is approximately a 60% increase over the 7,800 plus retail/corporate pies sold in December of 2006 and included an average 17% to 21% retail price increase.
Don Merrill, President & CEO of Tootie Pie commented, "We are very pleased with our retail/corporate sales increases for this past season. While so many retailers are reporting disappointing results, our sales continue to grow. We are also experiencing some pricing power, which is especially positive at this stage in our business model. Our branding and marketing strategies are working and we are confident in our ability to continue to produce this strong growth going forward."
Read the press release in its entirety.
2.) Tootie Pie Company Quarterly Wholesale Sales Up 380%
Jan. 31 -- The Tootie Pie Company, Inc. announced today that we sold in excess of 18,000 pies through our wholesale distribution channels for the three months ending December 2007. This represents roughly a 380% increase from the 3,700 pies sold in the same period of 2006.
Don Merrill, President & CEO of Tootie Pie commented, "We value the partnerships we have established with our wholesale distributors. In addition to providing year round cash flow and brand building opportunities, we have seen our wholesale business actually drive sales in our retail/corporate channels as well.”
Read the press release in its entirety.
3.) Tootie Pie Company Receives "2007 Business of the Year Award"
Jan. 29 -- The Tootie Pie Company, Inc. announced that it was awarded the prestigious “2007 Business of the Year Award” by the Greater Boerne Chamber of Commerce. This award is presented to the business that exhibits “outstanding service and product, and exemplary contribution to the growth and improvement of local commerce for the betterment of the community,” according to the criteria provided by Chamber President, Paula White.
“We are extremely honored to be chosen for this Award by our neighbors in Boerne. As most successful businesses should know, success begins in your own backyard and it is critical to receive the support of your community. We work very hard to be a good corporate citizen and appreciate knowing that our friends in Boerne see us that way,” said Don Merrill, President & CEO. Read the press release in its entirety.
Our Feature Profile:

The Tootie Pie Company, Inc.
(OTC BB: TOOT)
Feb. 8, 2008: $0.77
Company Profile
The Tootie Pie Company bakes, markets, and sells high-quality, handmade pies through three primary sales channels: retail, corporate, and wholesale. The retail segment, which serves individual consumers through in-store sales at the Company's Boerne storefront, orders via telephone and internet on the Company’s website. The corporate segment serves businesses to large corporations that purchase their pies for gifts, events, client and employee appreciation programs, and/or personal consumption. Their pies are shipped to the retail and corporate customers via third party carriers (Fed Ex, UPS) all over the United States. The wholesale segment is made up of regional and national broad-line food service distributors who purchase their products such as Ben E. Keith Foodservices, Foodservices, and US Foodservices. These major distributors then resell the pies to more local distributors, such as restaurants, hotels, charters, and coffee shops near their areas. The majority of sales are in the central and south Texas markets, although sales are beginning to occur in other markets in Texas and the surrounding states.
The Tootie Pie Company, Inc. is a public company whose stock is traded on the NASDAQ OTC markets under the symbol: “TOOT”. Visit their web site at: tootiepieco.com.
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Ruby Lorraine "Tootie" Feagan Creator of Tootie Pie:
Tootie Pie has been featured in numerous publications all over America. Writer John T. Edge, who journeyed across the country researching his book "Apple Pie: An American Story," highlighted the Tootie Pie. He recognized it not only for its big Texas size, but even more importantly for the pastry-like crust found only in Tootie’s pies. Tootie has also been featured on Texas Country Reporter, and in newspapers and magazine articles, such as Texas Monthly and The New York Times, for the past decade.
Ruby Lorraine “Tootie” Feagan was born in September of 1930 and grew up in Medina, Texas; a small hill country town located about 50 miles northwest of San Antonio on the banks of the Medina River. The history of Tootie Pies is a classic story of humble beginnings which through hard work, determination, and a loving hand has reached far beyond the kitchen and festivals where it was first introduced.
Like many of her generation, Tootie married young and started raising a family. It was in those early years that she created these recipes for her family and friends. After the loss of her husband, Bob, in 1982, Tootie dreamed of having her own bakery to help support her family. Of course, a dream starts with a single step, so she baked and sold her pies from home.
In 1985, Tootie was offered a job for a large Louisiana company to cook at their corporate hunting lodge outside of Medina, TX. Tootie used this opportunity to tweak and perfect her pie recipes for all of the visitors at the lodge. As word about her pies spread, she started baking pies for the local market in Medina alongside her job at the lodge.
Tootie would wake up at 3am to prepare pies for the market before going to her day job at the lodge in the winter months. People would drive from all over to Medina, asking locals where they could find one of “Tootie’s pies." Thus the name “Tootie Pie” was born. Tootie remarried in 1988 to Jerry Feagan, an Air Force retiree, talented cook, and avid supporter of Tootie.
Over time, Tootie attracted loyal fans from all across the country. From New York to California, Tootie’s pies have become a favorite centerpiece for dinner tables, picnics, and even gift-giving. In fact, some people have been known to drive from out of state just to pick up and enjoy her award winning pies.
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Key Management:
The Tootie Pie Company possesses a strong management team, with each member having solid credentials in both education and work experience to manage a successful company. The company is led by the following individuals:
- Don Merrill, President & CEO
- David Patterson, Treasurer & CFO
- Jeff Bailey, Vice President of Corporate Development
- Bobbie Keese, Vice President of Baking Operations
- Kimberly Lee, Sales Director
Click here for the full biographies of key management.
Why Tootie Pie Warrants Investment Consideration:
Company Balance Sheet:
As demonstated below, the Company has a very strong balance sheet. The Company just recently went public and has already shown a significant amount of growth in assets and revenue.
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| | PERIOD ENDING | 30-Sep-07 | 30-Jun-07 | | | Assets | | Current Assets | | Cash And Cash Equivalents | 753 | 444 | | Short Term Investments |
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| | Net Receivables | 23 | 8 | | Inventory | 110 | 71 | | Other Current Assets | 50 | 50 | | | Total Current Assets | 937 | 573 | | Long Term Investments |
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| | Property Plant and Equipment | 143 | 134 | | Goodwill |
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| | Intangible Assets | 134 | 141 | | Accumulated Amortization |
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| | Other Assets | 4 | 4 | | Deferred Long Term Asset Charges |
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| | | Total Assets | 1,217 | 852 | | | Liabilities | | Current Liabilities | | Accounts Payable | 105 | 183 | | Short/Current Long Term Debt |
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| | Other Current Liabilities | 1 | 1 | | | Total Current Liabilities | 106 | 184 | | Long Term Debt |
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| | Other Liabilities |
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| | Deferred Long Term Liability Charges |
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| | Minority Interest |
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| | Negative Goodwill |
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| | | Total Liabilities | 106 | 184 | | |
Stockholders' Equity
| | Misc Stocks Options Warrants |
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| | Redeemable Preferred Stock |
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| | Preferred Stock |
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| | Common Stock | 8 | 7 | | Retained Earnings | (1,075) | (921) | | Treasury Stock |
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| | Capital Surplus | 2,178 | 1,581 | | Other Stockholder Equity |
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| | | Total Stockholder Equity | 1,111 | 667 | | | Net Tangible Assets | $977 | $526 |
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SEC Filings:
Edgar search results for all of TOOT's recent SEC filings can be found at:
http://yahoo.brand.edgar-online.com/default.aspx?cik=1368218
Recent Press Releases:
Share Structure & Key Statistics:
| Exchange and Symbol | OTC-BB: TOOT |
| Recent Price | $0.77, February 8, 2008 |
| 52-week High - Low | $1.50 (high) - $0.55 (low) |
| Average Volume (3 month) | 13,452 |
| Shares Outstanding | 8.4M |
| Shares Float | ~6.5M |
| Market Capitalization | $6.89M |
| Industry / Sector | Food Industry / Bakery Restaurant |
| Additional Statistics | http://finance.yahoo.com/q?s=toot.ob |
Contact Information:
Technical Analysis
We are presenting The Tootie Pie Company (OTC-BB: TOOT) as a "long buy" candidate. We are bullish TOOT for these reasons:
- On April 9, 2007, TOOT began trading on the OTC-BB exchange. For the past nine months the stock has been trading within a channel between $0.70 and $1.00. When a stock is consolidating within a defined range, it is either under accumulation (buying) or distribution (selling), and will breakout in one way or another. Based on the potential that this company has, it is our believe the stock is under accumulation.
- Key technical indicators such as the moving average convergence/divergence (MACD), the relative strength index (RSI), and the 20-daily moving average are reading bullish.
- The MACD (moving average convergence/divergence) gave a bullish crossing on Jan. 29 (reading above its zero line).
- The RSI (relative strength index) went bullish on Jan. 31 with a crossing above 50 and it is gaining momentum.
- The stock crossed above its 20-daily moving average on Jan. 29, which is now providing support.
- Previous areas of buying volume for each major surge within the consolidation zone have been bullish. Present volume is starting to enter the formation as the stock nears the break out price of its upper resistance trendline. This is normally very bullish and if the stock breaks-out above trend resistance, then it should surge to much higher prices.
We believe TOOT presents a perfect buying opportunity prior to a possible breakout. The stock is currently trading at $0.77. Our conservative one-month target is $1.00 for a +30% return. However, we believe TOOT has potential of trading much higher. If the stock breaks-out above overhead resistance, our long-term six-month target is $1.50 for a +95% return. Based on technical analysis alone, we are quite bullish TOOT.
Conclusion
Solid company fundamentals and the technical forecast portray an exciting future for The Tootie Pie Company (TOOT). The growth potential of TOOT has become very exciting with the Company being led by a strong management team with a proven track record for success. In brief, very favourable impacts such as: an excellent, high-quality product, strong brand, open distribution channels, several sales and product categories, franchise/distribution models, an award-winning business model, a strong balance sheet, and a clean corporate structure, magnifies how undervalued this company is and how much upside potential this company has. We are proud to be presenting this company to our members prior to Wall Street knowing its magnitude. In the long run, we believe investors will be rewarded handsomely by a much higher stock price. We believe TOOT is a very lucrative long-term investment.
Disclaimer and Disclosure
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degree of investment risk and volatility. All investors are cautioned that you may lose all or a portion of your investment if
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afford to lose your entire investment.
This advertisement alert contains or incorporates by reference "forward-looking statements" within the meaning of Section 27A of
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with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance
are not statements of historical fact and may be "forward looking statements" within the meaning of the Safe Harbor Clause of the
Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements invoke risk and
uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. Forward looking
statements in this action may be identified through the use of words such as “expects”, “will”, “anticipates”, “estimates”, “believes”,
or that by statements indicating certain actions “may”, “could”, or “might occur”, and similar expressions which are intended to
identify forward-looking statements. These risks and uncertainties include, but are not limited to, demand for the Company's product
both domestically and abroad, the Company's ability to continue to develop its market, the Company's ability to obtain necessary
financing, general economic conditions, and other factors that may be more fully described in the company's literature and any periodic
filings with the Securities and Exchange Commission.
It should be understood that there is no guarantee past performance will be indicative of future results. The accuracy or
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In order to be in full compliance with the Securities Act of 1933, Section 17(b), Stockchartist.com, LLC received $2,250 U.S. cash
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with press releases and other company news. StockChartist.com and its officials do not own any shares and will not trade
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THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN
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Exchange Commission (SEC) at: http://www.sec.gov and/or the
National Association of Securities Dealers (NASD) at:
http://www.nasd.com. Readers can review all public filings by
companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.
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