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.


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.


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:

  • Strong, experienced and focused management - The President and CEO has an extensive financial and early stage business development background, has assembled a strong management team, and leads the Company with a clear vision for growing the business in ways that enhance shareholder value.

  • Excellent, high-quality product - Pies are carried by over 300 restaurants already since March 2006; distributed through SYSCO Foods (a Fortune 500 Food Distributor) and Ben E. Keith Foods to family style restaurants and coffee shops, and up to white tablecloth high-end establishments.

  • Strong brand - Even though the Company is young, it has already exhibited “brand-building” techniques critical to adding to Company value with close to 70% of end users identifying the products by name as “Tootie Pies." Company CEO recognized this quality initially when envisioning the creation and development of the Company and all sales and marketing materials, both internal and external, utilizing sophisticated early stage “brand building” strategies.

  • Opening distribution channels - The “buzz word” in retail sales and distribution. To “open channels” through which other products in the pipeline can be sold. It is very difficult today to have products that “open” new retailer restaurant locations and cause high levels of loyal customer retention. The Company has sold in excess of 18,000 pies through their 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.

    Key drivers to 380% wholesale growth:

    • Growth in wholesale distribution from 5 to 12 distribution centers, covering 10 different states.
    • Addition of high-end retail grocers including:
      • HEB Central Markets (8 stores throughout TX) and
      • Rice Epicurean Markets (5 stores in Houston, TX)
    • Successful implementation of our multi-unit strategy, focusing on chain accounts with multiple locations
    • Featured in Neiman Marcus holiday catalog

  • Several sales & product categories - The Company is already achieving success in several sales categories including wholesale (restaurant), retail (website, walk-in), and corporate (gift giving, employee recognition, and customer appreciation); and it has follow-up products already in development.

  • Organic & external growth plans - The Company has proven, strong organic growth, growing revenues by 396% after only its first year of business! But also has external growth strategies to acquire existing bakery or coffee shop locations in “roll up” fashion, which can be rebranded “Tootie Pie Company” company-owned operations.

  • Franchise/Distribution models - The Company has plans to take the initial acquired “Company Ops” and develop into models for further expansion and/or franchising. Multiple points of distribution in key demographic locations can result in sensible distribution points that lower shipping costs to end user customers.

  • Award-winning business model - The Company was awarded the prestigious “2007 Business of the Year Award” by the Greater Boerne Chamber of Commerce. This award was presented to the Company for exhibiting an outstanding service and product, and for making an exemplary contribution to the growth and improvement of local commerce for the betterment of the community.

  • Key “up-stream” qualities - Management recognizes the key elements and is executing on strategies that position the Company to be an attractive vehicle for shareholder appreciation and possible future acquisition by “up-stream” food industry related companies.

  • Strong balance sheet & finances - On a “fully-diluted” basis, the Company would-carry approximately $0.40 per share in CASH ON HAND, making it an exceptionally well-capitalized small cap company. Cash valuations, from an acquisition standpoint, could produce multiples of 3x to as high as 7x, in terms of CASH VALUE ALONE.

  • Impressive gross profit margins - The Company has already recognized manufacturing techniques that have improved gross margin from 23% to 64% during its first 12 months and will continue to implement manufacturing efficiencies that will improve product profit margins going forward.

  • Small float, clean corporate structure - The Company incorporated in Nevada and was capitalized with $1 million in private equity (friends and angel investors), filed and obtained an “effective” SB-2 with the US Securities & Exchange Commission (as of 1-08-07), with no reverse mergers, no convertible debts or debts of any kind, and only one class of common stock held by all shareholders, including management. Warrants held by initial investors convert into already registered common stock through Company-controlled call features for up to $4.5 million in additional equity.

  • Strong upside potential - The Tootie Pie Company Common Stock is clearly poised to provide shareholders with strong upside investment potential, combining traditional food-related investor defensive economic protection with strong, steady growing revenues; while also affording its shareholders significant upside potential provided through many avenues as discussed above.


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.

PERIOD ENDING30-Sep-0730-Jun-07
Assets
Current Assets
Cash And Cash Equivalents753  444  
Short Term Investments -   -  
Net Receivables23  8  
Inventory110  71  
Other Current Assets50  50  
Total Current Assets937  573  
Long Term Investments -   -  
Property Plant and Equipment143  134  
Goodwill -   -  
Intangible Assets134  141  
Accumulated Amortization -   -  
Other Assets4  4  
Deferred Long Term Asset Charges -   -  
Total Assets1,217  852  
Liabilities
Current Liabilities
Accounts Payable105  183  
Short/Current Long Term Debt -   -  
Other Current Liabilities1  1  
Total Current Liabilities106  184  
Long Term Debt -   -  
Other Liabilities -   -  
Deferred Long Term Liability Charges -   -  
Minority Interest -   -  
Negative Goodwill -   -  
Total Liabilities106  184  
Stockholders' Equity
Misc Stocks Options Warrants -   -  
Redeemable Preferred Stock -   -  
Preferred Stock -   -  
Common Stock8  7  
Retained Earnings(1,075)(921)
Treasury Stock -   -  
Capital Surplus2,178  1,581  
Other Stockholder Equity -   -  
Total Stockholder Equity1,111  667  
Net Tangible Assets$977  $526  


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:

  1. Feb 7Tootie Pie Company Quarterly Retail Sales Up 60%
  2. Feb 5Tootie Pie Company Adds Jalapeno Tree Mexican Restaurant Chain
  3. Jan 31Tootie Pie Company Quarterly Wholesale Sales Up 380%
  4. Jan 29Tootie Pie Company Receives "2007 Business of the Year Award"
  5. Jan 23Tootie Pie Company Sets Quarterly Sales Record
  6. Jan 17Tootie Pie Company Sets Another Sales Record in December
  7. Dec 13Tootie Pie Introduces Merchandise Line Through Online Retailer Zazzle
  8. Dec 7Tootie Pie Company Financials
  9. Dec 6Tootie Pie Company Sets New Sales Record in November
  10. Nov 29Tootie Pie Company in the News
  11. Nov 28Tootie Pie Company in Southern Living
  12. Nov 20Tootie Pies Now in Jim's Cafe & Coffee Bars
  13. Nov 15Tootie Pies in Famed Hullabaloo Diner
  14. Nov 14Tootie Pie Company Six Months Revenues Up 127%
  15. Nov 13Tootie Pie Company Files SEC form 10QSB, Quarterly Report
  16. Nov 13Tootie Pies in Rudy's Country Store & Bar-B-Q
  17. Nov 8Tootie Pies Now in HEB Central Markets
  18. Nov 6Tootie Pie Company Sets October Sales Record
  19. Nov 5Equity Stock Analysis Announces New Research Note for The Tootie Pie Company
  20. Oct 31Tootie Pies in Neiman Marcus Holiday Catalogue
  21. Oct 8More Headlines for TOOT.OB...


Share Structure & Key Statistics:

Exchange and SymbolOTC-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 Outstanding8.4M
Shares Float~6.5M
Market Capitalization$6.89M
Industry / SectorFood Industry / Bakery Restaurant
Additional Statisticshttp://finance.yahoo.com/q?s=toot.ob


Contact Information:

Tootie Pie Company, Inc.
129 Industrial Drive
Boerne, TX 78006
Phone: (210) 737-6600
Fax: (210) 237-4750
Contact Tootie Pie: Contact Form
E-mail: investorinfo@tootiepieco.com
Map and Driving Directions: Google Maps
Web Site: www.TootiePieCo.com




Technical Analysis

We are presenting The Tootie Pie Company (OTC-BB: TOOT) as a "long buy" candidate. We are bullish TOOT for these reasons:

  1. 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.

  2. 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.

  3. 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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This publicly distributed email report is a sponsored advertisement. This paid advertising issue of StockChartist.com does not purport to provide an analysis of any company's financial position. StockChartist.com is a paid advertiser. The Tootie Pie Company is the featured company. All materials presented on our web site and individual reports released to the public are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with trading any stock, there is always a high degree of investment risk and volatility. All investors are cautioned that you may lose all or a portion of your investment if you decide to make a purchase in any profiled company. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment.

This advertisement alert contains or incorporates by reference "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions 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 completeness of the information on our web site or within our report is only as reliable as the sources they were obtained from. 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 from The Tootie Pie Company for its efforts in presenting and disseminating this information to our subscriber database, and posting this report on the Stockchartist.com web site. StockChartist.com will receive an additional $1,250 within 30 days of the release of this report. StockChartist.com was hired for a six month period only to create investor awareness and exposure for the Company. StockChartist.com may receive an additional $500 per month (4 payments from April through July) for it efforts in updating members with press releases and other company news. StockChartist.com and its officials do not own any shares and will not trade the security during the six month contract period, since this may be interpreted as a conflict of interest.

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