This company is in the restuarant chain business. The CEO has 30 years of experience. They are moving into WalMarts and growing their Stewart's Original Root Beer Restaurant chain. If they keep the pace up and watch closely at their books (spending vs income/value) then this could be a very rewarding stock!

April 17th:   .....pleased to announce Maryland as the next State in its Stewart's Original Root Beer Restaurant franchise expansion.

May 22nd: ....is delighted to announce that they have signed a contract with Kahala Corporation

July 11th:  ....is delighted to announce the grand opening of their first Stewart's Original Root Beer Restaurant franchise in the Shrewsbury, PA Wal-Mart Super Store

July 13th:  ...it has finalized the first of what could be many business deals with Kahala Corp. Rockelle facilitated the recent sale of a Blimpie franchise in Wilton, N.Y

July 26th: ....they have added another State for their Stewart's Original Root Beer Restaurant franchise expansion. Rockelle announces that they have secured two (2) additional Wal-Mart locations in Ohio and construction is now underway

Aug 17th: .... to announce that they have received approval from Massimo Zanetti Beverage, USA, the parent company of Chock Full o'Nuts, that permits Rockelle to combine other food concepts with a Chock Full o'Nuts Coffee Shop. This agreement allows Rockelle to create dual or multi branded locations featuring Chock Full o'Nuts.


Finances do not look like this company is over extended in their expansion. If they can work the sales/lease mix to show real positive year over year income then they should hold up with their 20M shares OS which seems modest. It corrected to .13 so this may be a good buy in. .JMHO

It's current ratio is pretty bad, although not horriable at 0.61 ... it will probally be able to pay it's bills in the short term through some financing...

Popeye or anyone what are "Defered Long Term Asset Charges" as a lot of the long term assests are here and in Intangable assets... I personally would have liked to see a little more in PPE

They had losses to the tune of 1/2 a million bucks last quarter and revenue of only $15,000... that seems insane to me...

They haven't been issueing stock much latley, but they have been getting loans like it's going out of style...

If you are going to invest in this company do it on the future of the company, but don't but in on it's financials...

DeMerchant:

These are expenses which the company has paid for but not yet subtracted from the assets.  They are very similar to Prepaid Expenses (where rent would be counted as an asset until it came due each month, then would be subtracted from the balance sheet).  In fact, Prepaid Expenses are type of deferred charge.  The difference is, when companies prepay rent or some other expense, they have a legal right to collect the service.  Deferred Long Term Asset Charges have no legal rights attached to them.

For example, if a company prepaid rent on a storage building, and then spent $30,000 moving all of their equipment into it, they could set the $30,000 up on the balance sheet as a deferred charge.  This way, they wouldn't be forced to take a hit by reducing their earnings $30,000 the same month they paid for the relocation costs.  They could then write this amount down over time.

These charges are intangible and should be given very little weight when analyzing a balance sheet.

Thanks for the insight. Its all worth it. As for the note on financials:

     Most BB stocks can't be bought on fundimentals anyway. I am looking at the prospect that if this company starts getting contracts from a reasonable portion of the Walmart stores across the USA for their restuarants, that alone is a bright future!  To expect them coming out of the gate with revenues and NOT have some justifiable debt/loans is a little unrealistic to me. Also they are already building four resturants that well exceed the 15K in revenues so that figure is not valid except as a VERY current snap shot of fundimentals. So you may be a little harsh on these guys and better to view them as a growth stock where fundimentals could change drastically qtr to qtr . Look at the following targets for a better judgement of this stock:

   1. It is Rockelle's intention to develop a minimum of ten (10) Stewart's "Snack Bar" franchises located within Wal-Mart facilities on an annual basis.
   2. Rockelle will net approximately $150,000 on the sale of each developed Stewart's "Snack Bar" franchise sold. Rockelle will continue to earn $4,000 annually in recurring royalty fees per location for each franchise sold.
   3. Management strategies include the opening of a "model" Taco Time in the New York Metropolitan area, offering franchises for sale, ( "We estimate the cost to open the model store to be approximately $260,000 and we expect to generate revenue in excess of $550,000" )
   4. Over the next twelve months we intend to further our business plan by developing ...... as well as opening a minimum of four (4) Taco Time franchise locations

  If reach even 75% of their Walmart target and lease atleast 2 TT's each year, that alone seems to me to be a bright future for this company.
  Am I missing something?

   ****************** IMPORTANT *******************

    Since my last post I found some fundimental changes in pricing structure and company strategy that lends me to believe this stock may not be a good play at the present price range. There is alot of hope still for this venture but I need to wait for about two more qtr's of financials to see how they are growing their business. This is a very difficult industry to really make money in and though they have a good plan it needs to be executed well and the bottom line has to be watched carefully. On another site the CEO answered someones email and seemed pleasent and honest. Assured no near future stock dilutions and no large incurring debt other then what they already have. Well I still want to see reports first. That being said and with a future attractive share price I think a close watch on this company can be very rewardiing.
    To recap the fact that they have high yeilding Taco Bell franchises and entrance into WalMarts still makes this a compelling company in anyone's portfolio! I am invested but will not add to my position at this time. I will post again after better finances firm up!

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Against everything I know about investing this company suprised me with an incredible turn on share price. This against no news! Still can not say how valuable this company is until there are more SRB opening and especially the  high revenue producing Taco Times! Whatever is moving this stock, I want to apologize if my previous post scared many away! The volume over the last two days suggest that this may not  be a MM manipulation but then again total shares traded where still under 1M. I must say though if there is no news on expansion in the Walmart or TT's I am not sure what will hold this stock up in this price area? Also note that TA shows this is trading only within the Bollinger Bands.

MILLER PLACE, N.Y., Sept. 29, 2006, Sep 29, 2006 (PRIMEZONE via COMTEX) -- Rockelle Corporation (RKLC) , a franchiser, developer, owner and operator of quick service restaurants and other food related concepts, is pleased to announce the grand opening of yet another Stewart's Original Root Beer Restaurant. The newest franchise, located in the Bartow, Florida Wal-Mart, will open on September 30, 2006.

Rockelle previously announced plans to open multiple Stewart's Original Root Beer Restaurant franchises within select Wal-Mart locations. The company celebrated its first Stewart's grand opening in Pennsylvania during the late summer of 2006. Rockelle opened its next location, in Florida, in early September 2006. With this newest franchise opening, Rockelle continues to follow its business plan by fulfilling its commitment to open a number of Stewart's Original Root Beer Restaurants.

Gerard A. Stephan, CEO and president of Rockelle Corporation, said, "With the opening of our second Florida location inside of Wal-Mart, we now have three revenue generating Stewart's franchises, with more on the way. We have three additional locations that we expect to make grand opening announcements for imminently." Mr. Stephan went on to say, "As result of the Stewart's franchise agreement and our other licensing arrangements with Chock full o'Nuts and Kahala Corp, we are more confident than ever for solid revenue growth in 2007. I look forward to sharing specific details with you in the very near future."

                      
                                ****** Change in Sentiment **********

   Though this may still not be an entry point, my sentiments for the company share price has changed. While focusing on how they were going to grow out of their debt and show solid revenues I neglected to see what the share price reflected in the Market Cap. When the stock hit .06 the market cap was only 1.25M

Consider this  ....... two TT's yearly revenues almost takes that out, let alone the string of SRB they will land in the WalMart chain stores. Daaaaahhhhhhhh! Boy did I miss that one and the stock shoot up to .17! Sorry fellas I won't do that again! If it drops to .06 again a suggest you pick up a few shares. That will be a great entry price and a chance to not make the same mistake twice. JMHO

                        *************** NOTE ****************

  Now that being said, I will still watch for stock dilution going forward as they expand their business. In my opinion the low OS (about 20M) is stopping any wholesale shorting and will keep these share prices honest but if the OS increases that may change.

*************************** Important *******************************

From an Oct. SEC filing I found this!

Our selling security holders are offering to sell 101,250,000 shares of common stock issuable in connection with the conversion of promissory. In addition, we are registering 1,300,000 shares which are already outstanding.

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I had to edit this post on this latest development and now I am putting a hold on this stock with a possible sell as this information becomes more clear! I was going to post the news of expanding business and potential income from the franchises but with this latest possible dilution I think all bets are off until this plays itself out! Daily Volume trading will be the obvious tell tale that the shares are being dumped!