DNNC +128% on record volume
As you can tell from today's trades, not many were taking quick profits and I'm assuming most of the trades came from MMs. Only a few bid-whacks all day ... I still think it's heading a lot higher but I'm optimistic.
I suggest you take profits in increments along the way, but continue holding some for the long-term. If they can open 50 franchises in the US at $250k a pop, we're talking about some very nice EPS that would put this small-time pizza franchise on the map in a big way. Not to mention all the other sh!t I've posted about here.
These are all long-term holds for me, but I trade around the action and I'm always buying and selling incrementally. Pinksheet Roulette thread is the only exception.
Donini, Inc. Signs Letter of Intent for Merger
MONTREAL, Dec 14, 2009 (MARKETWIRE via COMTEX) -- Peter Deros, President and CEO
of Donini, Inc., (PINKSHEETS: DNNC) announced today that the Company has signed a
Letter of Intent (LOI) to merge with Kern Automotive Group, Inc. (Kern)
Kern is a unique automotive dealership based in the Southeastern United States.
Kern has access to new car trade-ins from some of the largest national new car
dealers through the relationship of its CEO, Mr. Jacob Kern, developed through
years of prior transactions. The Company is well positioned to take advantage of
the current market for used vehicles and offer financing for its customers. The
goal is to provide customers with outstanding customer service and quality
pre-owned vehicles at affordable prices. http://www.kernautomotive.com
No terms of the transaction have been disclosed at this time. However, a
definitive agreement is expected by December 31. As part of the transaction, the
food related business of Donini will be spun out as a separate entity.
Mr. Deros stated that he is extremely excited about the merger and sees an
opportunity to expand into to new business area providing a stronger potential
for revenue and profits for Donini shareholders.
About Donini, Inc.
Donini, Inc., a New Jersey Corporation, was established in 2001 when the company
acquired control by way of a reverse merger of Pizza Donini, a Canadian company
that has been operating and licensing Italian style restaurants specializing in
pizza and related products within the Greater Montreal Area in the province of
Quebec for over 20 years. The Company has recently completed a consolidation of
its operations by establishing two Canadian Subsidiaries, Donini Group Inc. and
Pizzacorp DTC Franchises Inc., whose purposes are; respectively, to hold and
control the intellectual property of the Company and to license the trademarks
and oversee the licensed franchisees of the marks. The Company plans to expand
its operations into the United States and the rest of Canada.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as "anticipate," "believe," "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
Donini, Inc. (the Company) to be materially different from those expressed or
implied by such forward-looking statements. The Company's future operating
results are dependent upon many factors, including but not limited to the
Company's ability to: (i) obtain sufficient capital or strategic business
arrangement to fund expansion plans; (ii) build management, human resources and
infrastructure necessary to support growth; (iii) competitive factors and
developments beyond the Company's control; and (iv) other risk factors.
Media Contact
Contact:
Peter Deros
Donini, Inc
Phone: 514-956-0005 ext 2
pderos@pizzadonini.com
SOURCE: Donini, Inc.
mailto
deros@pizzadonini.com
Copyright 2009 Marketwire, Inc., All rights reserved.
What do you think of this kuwlness?
MONTREAL, Dec 14, 2009 (MARKETWIRE via COMTEX) -- Peter Deros, President and CEO
of Donini, Inc., (PINKSHEETS: DNNC) announced today that the Company has signed a
Letter of Intent (LOI) to merge with Kern Automotive Group, Inc. (Kern)
Kern is a unique automotive dealership based in the Southeastern United States.
Kern has access to new car trade-ins from some of the largest national new car
dealers through the relationship of its CEO, Mr. Jacob Kern, developed through
years of prior transactions. The Company is well positioned to take advantage of
the current market for used vehicles and offer financing for its customers. The
goal is to provide customers with outstanding customer service and quality
pre-owned vehicles at affordable prices. http://www.kernautomotive.com
No terms of the transaction have been disclosed at this time. However, a
definitive agreement is expected by December 31. As part of the transaction, the
food related business of Donini will be spun out as a separate entity.
Mr. Deros stated that he is extremely excited about the merger and sees an
opportunity to expand into to new business area providing a stronger potential
for revenue and profits for Donini shareholders.
About Donini, Inc.
Donini, Inc., a New Jersey Corporation, was established in 2001 when the company
acquired control by way of a reverse merger of Pizza Donini, a Canadian company
that has been operating and licensing Italian style restaurants specializing in
pizza and related products within the Greater Montreal Area in the province of
Quebec for over 20 years. The Company has recently completed a consolidation of
its operations by establishing two Canadian Subsidiaries, Donini Group Inc. and
Pizzacorp DTC Franchises Inc., whose purposes are; respectively, to hold and
control the intellectual property of the Company and to license the trademarks
and oversee the licensed franchisees of the marks. The Company plans to expand
its operations into the United States and the rest of Canada.
Safe Harbor Statement
Certain statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as "anticipate," "believe," "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
Donini, Inc. (the Company) to be materially different from those expressed or
implied by such forward-looking statements. The Company's future operating
results are dependent upon many factors, including but not limited to the
Company's ability to: (i) obtain sufficient capital or strategic business
arrangement to fund expansion plans; (ii) build management, human resources and
infrastructure necessary to support growth; (iii) competitive factors and
developments beyond the Company's control; and (iv) other risk factors.
Media Contact
Contact:
Peter Deros
Donini, Inc
Phone: 514-956-0005 ext 2
pderos@pizzadonini.com
SOURCE: Donini, Inc.
mailto
deros@pizzadonini.com Copyright 2009 Marketwire, Inc., All rights reserved.
What do you think of this kuwlness?
Free bread sticks with oil change.
Buy a car and get 50 free pizzas!
I hope they meet the Dec 31st goal for a definitive agreement!
"As part of the transaction, the food related business of Donini will be spun out as a separate entity. "
"Mr. Deros stated that he is extremely excited about the merger and sees an opportunity to expand into to new business area providing a stronger potential for revenue and profits for Donini shareholders."
I'm a little confused about the part where Donini food stuff spins off to another company but at the same time Donini shareholders will benefit from the food AND the cars.
Regardless though, I'm excited! Any news beats no news. Unless youre Tiger Woods... then you don't want any news.
Yes, yesterday's news was a bit of a shocker to me. All I know is another update is coming and I hope it clarifies this information. He's some information I can share that I might help make a little more sense of this:
From the last article, focusing on educating the customers on ability to obtain financing is key. From Kern's website:
Kern Automotive Group Inc knows that people have difficulties or problems at various stages in their lives and often these difficulties can create financial problems. Typical new and used car dealerships normally shy away from customers with credit challenges. Kern Automoitve Group welcomes the business and helps individuals with troubled credit or no established credit to finance a quality car and simultaneously re-establish credit.
Seems like there are two possibilites:
1. Taking advantage of a company that has a good position to take benefit from current economic times and the change in customer outlook for purchasing cars. Canada and/or USA
2. Pizza Delivery - purchasing or leasing vehicles for their delivery personnel. Seeing that as a competitive advantage (possibly more cost effective) with an increase shift towards on-line delivery. Papa Johns exceeded 1B in on-line orders in 08'. Dominos has on-line delivery as well. Seems to be the future for food delivery. If your opening new locations all over, why not allow for on-line ordering. Increased delivery=increased delivery personnel and/or vehicles. See section from an article below.
Online ordering softwares are created for the restaurant industry. The softwares are specifically designed for restaurants of all sizes. They are not only simple and user-friendly, but are also affordable for restaurants nationwide.
The idea of ordering food online is not new. Major pizza chains across the country have been using online ordering with great success over the past few years. In May 2008, Papa John’s International reached one billion dollars in online ordering sales. According to the National Restaurant Association, 57% of adults use the internet to do research on a restaurant due to which no matter how big or small they are, all restaurants should be able to compete on the same playing field. Online food ordering works as an extremely affordable way for all restaurants, especially mom and pops, to have online order capabilities.
The concept of Online food ordering makes sense. People are spending more time on the web plus, they are looking for convenience. Many restaurant owners are recognizing the need and have decided to implement the cost-effective program at their restaurants to alleviate the time their employees spent taking orders over the phone.
Online food ordering gives customers full control of their entire ordering process from choosing menu items to entering delivery and credit card information. Orders are then sent to a store’s fax machine and received within 10 seconds. As a result, workers have more time to dedicate to food preparation. The process becomes very easy to set up as restaurateurs need to do nothing but provide a menu and move the fax machine next to their prep station, The only concern is with the employees getting used to it. But the order receiving process is so straightforward that there are no issues or missed orders.
Continued from above:
A typical pizza chain may pay about one dollar per delivery to defray some of the gas used, but the wear and tear on the cars is up to the driver to pay for. If a chain charges a delivery fee, the driver is not getting all of it; they are lucky to get a small fraction of it for gas. The delivery fee is mostly a way for the chain to increase revenue. Don't be fooled, the delivery fee is not a tip.
Most drivers typically get paid minimum wage, some a few cents more. Some smaller pizza shops may qualify to pay less than minimum wage due to loopholes in state minimum wage laws. In Ohio, for example, if a business has sales under a certain amount, the federal minimum wage can be paid, and it is less than the Ohio minimum wage.
If drivers did not get tipped, you would eventually not have anyone willing to do the job with all the wear and tear on the vehicles. Why would anyone work minimum wage and wear out their car without more compensation than one dollar per delivery?
Papa Johns being sued (from september 2009) for violating Fair Labor Standards Act
Stueve Siegel Hanson LLP in Kansas City, Mo. and Weinhaus & Potashnick in St. Louis, Mo. recently filed lawsuits in Missouri and Colorado against Papa John’s International, Inc. and one of the largest Papa John’s franchises. Papa John’s International, Inc. operates nearly 600 corporate Papa John’s stores in the United States. The franchisee (PJCOMN Acquisition Corp. and Essential Pizza, Inc.) operates more than 80 Papa John’s franchise stores in Colorado and Minnesota.
The plaintiffs allege that Papa John’s International, Inc. and the franchisee are violating the Fair Labor Standards Act, the Colorado Minimum Wage of Workers Act, and Missouri’s wage and hour laws by failing to adequately reimburse drivers for automobile costs and other job-related expenses, causing them to earn less than minimum wage.
Pizza companies require their delivery drivers to maintain operable, safe and legally-compliant vehicles. To do so, the drivers must purchase their own gasoline, vehicle parts, fluids, repairs, maintenance services and insurance. Meanwhile, their vehicles depreciate rapidly while driving on the job. Some employees commonly drive more than 100 miles per shift. AAA Auto Club calculates (”Behind the Numbers,” AAA communication, 2009 edition) the average 2009 annual cost of operating a vehicle at $8,095.00 for 15,000 miles. This equates to a per mile cost of $0.54.
The pizza delivery industry maintains a practice of paying its drivers a fixed amount per delivery, regardless of whether a delivery is one block from the restaurant or eight miles away in the next town. Reimbursement rates vary amongst chains from about $0.75 to $1.25 per delivery. However, there appears to be no correlation between the size of the delivery area or average delivery mileage and the amount of delivery reimbursement. This “one-size-fits-all” approach, rather than reimbursing drivers based on their actual mileage or their actual automobile expenses incurred, fails to adequately compensate drivers for the true and full cost of using their own vehicles to deliver their employer’s pizzas.
Speculation:
1. Be the first pizza company to own it's own vehicles for use by it's workers, attract unemployed to come work for a pizza company where they don't have to use their own vehicle.
2. Giving employees the opportunity for better financing deals on their car purchase if they are employed with a pizza company that owns a new-trade in car company.
3. Leverage the cash for clunker program, with unemployement, pizza delivery require there own car which would be tough right now with gas prices/economic times to use your own car.
4. Is the current practice really cost effective approach to pizza deliver?
Some employees commonly drive more than 100 miles per shift. AAA Auto Club calculates (”Behind the Numbers,” AAA communication, 2009 edition) the average 2009 annual cost of operating a vehicle at $8,095.00 for 15,000 miles. This equates to a per mile cost of $0.54.
The pizza delivery industry maintains a practice of paying its drivers a fixed amount per delivery, regardless of whether a delivery is one block from the restaurant or eight miles away in the next town. Reimbursement rates vary amongst chains from about $0.75 to $1.25 per delivery.
(1 restaurant=3 pizza delivery guys=5 deliveries a night*3 drivers*350 days=$15750 a year) why not just buy a couple vehicles? Happier employees and cost effective in the long run. Need to dig into this more
A typical pizza chain may pay about one dollar per delivery to defray some of the gas used, but the wear and tear on the cars is up to the driver to pay for. If a chain charges a delivery fee, the driver is not getting all of it; they are lucky to get a small fraction of it for gas. The delivery fee is mostly a way for the chain to increase revenue. Don't be fooled, the delivery fee is not a tip.
Most drivers typically get paid minimum wage, some a few cents more. Some smaller pizza shops may qualify to pay less than minimum wage due to loopholes in state minimum wage laws. In Ohio, for example, if a business has sales under a certain amount, the federal minimum wage can be paid, and it is less than the Ohio minimum wage.
If drivers did not get tipped, you would eventually not have anyone willing to do the job with all the wear and tear on the vehicles. Why would anyone work minimum wage and wear out their car without more compensation than one dollar per delivery?
Papa Johns being sued (from september 2009) for violating Fair Labor Standards Act
Stueve Siegel Hanson LLP in Kansas City, Mo. and Weinhaus & Potashnick in St. Louis, Mo. recently filed lawsuits in Missouri and Colorado against Papa John’s International, Inc. and one of the largest Papa John’s franchises. Papa John’s International, Inc. operates nearly 600 corporate Papa John’s stores in the United States. The franchisee (PJCOMN Acquisition Corp. and Essential Pizza, Inc.) operates more than 80 Papa John’s franchise stores in Colorado and Minnesota.
The plaintiffs allege that Papa John’s International, Inc. and the franchisee are violating the Fair Labor Standards Act, the Colorado Minimum Wage of Workers Act, and Missouri’s wage and hour laws by failing to adequately reimburse drivers for automobile costs and other job-related expenses, causing them to earn less than minimum wage.
Pizza companies require their delivery drivers to maintain operable, safe and legally-compliant vehicles. To do so, the drivers must purchase their own gasoline, vehicle parts, fluids, repairs, maintenance services and insurance. Meanwhile, their vehicles depreciate rapidly while driving on the job. Some employees commonly drive more than 100 miles per shift. AAA Auto Club calculates (”Behind the Numbers,” AAA communication, 2009 edition) the average 2009 annual cost of operating a vehicle at $8,095.00 for 15,000 miles. This equates to a per mile cost of $0.54.
The pizza delivery industry maintains a practice of paying its drivers a fixed amount per delivery, regardless of whether a delivery is one block from the restaurant or eight miles away in the next town. Reimbursement rates vary amongst chains from about $0.75 to $1.25 per delivery. However, there appears to be no correlation between the size of the delivery area or average delivery mileage and the amount of delivery reimbursement. This “one-size-fits-all” approach, rather than reimbursing drivers based on their actual mileage or their actual automobile expenses incurred, fails to adequately compensate drivers for the true and full cost of using their own vehicles to deliver their employer’s pizzas.
Speculation:
1. Be the first pizza company to own it's own vehicles for use by it's workers, attract unemployed to come work for a pizza company where they don't have to use their own vehicle.
2. Giving employees the opportunity for better financing deals on their car purchase if they are employed with a pizza company that owns a new-trade in car company.
3. Leverage the cash for clunker program, with unemployement, pizza delivery require there own car which would be tough right now with gas prices/economic times to use your own car.
4. Is the current practice really cost effective approach to pizza deliver?
Some employees commonly drive more than 100 miles per shift. AAA Auto Club calculates (”Behind the Numbers,” AAA communication, 2009 edition) the average 2009 annual cost of operating a vehicle at $8,095.00 for 15,000 miles. This equates to a per mile cost of $0.54.
The pizza delivery industry maintains a practice of paying its drivers a fixed amount per delivery, regardless of whether a delivery is one block from the restaurant or eight miles away in the next town. Reimbursement rates vary amongst chains from about $0.75 to $1.25 per delivery.
(1 restaurant=3 pizza delivery guys=5 deliveries a night*3 drivers*350 days=$15750 a year) why not just buy a couple vehicles? Happier employees and cost effective in the long run. Need to dig into this more
Donini Inc. Cancels Letter of Intent With Kern Automotive
MONTREAL, Dec 22, 2009 (MARKETWIRE via COMTEX) -- Peter Deros, President and CEO of Donini, Inc. (PINKSHEETS: DNNC), and Mr. Jacob Kern of Kern Automobile jointly announced that the Letter of Intent announced recently has been cancelled. Both Companies, after further examination, concluded that it would be better for each to pursue their different plans separately.
Mr. Deros stated that he believed
Donini would be better able to succeed with its aggressive expansion plans in Canada and the United States by partnering with a company more closely aligned with its core food service business. He concluded by stating that several possible partner prospects are being pursued for implementation during the first quarter of 2010.
I guess he didnt take the emails myself and several others sent him lightly ... I'm grateful he decided to cancel the deal. Back to .013 => .017 today IMO.
I'm guessing the flip-flopping caused a few longs to call it quits. I'm still confident as I believe next year will be a big year for his company. I think his lawyer gave him stupid advice and tried to be a middle-man and make some quick cash finalizing the legal documents.
I'll wait for franchise news to re-evaluate my long position. I believe we'll see more news over the first few weeks of January that will give more details on his company's expansion into the United States.
It was a fat-fingered MM trade ... the trade was supposed to be 90k at .0052, and they did 900k at .052. That's my only guess, wish it was that thin.
I averaged down significantly today. Tax-loss selling should be done tomorrow or Thursday at the latest, grab your favorite stocks on discount.
