OTC Stocks: SoupMan, Inc. (SOUP) “No Soup For You?”

Most everyone who is investing in penny stocks today was alive on July 5, 1989. Imagine if you had invested $1,000 in Apple stock back then or in the top 10 penny stocks on that date. Imagine how many new penny stocks have listed since then and how many people who buy penny stocks have made millions since then. Al Yeganah is now a member of that penny stock list simply because that date was a moment in television history for a generation and for Al who eventually became famous for his “No Soup For You” quote since Soupman, Inc. (OTCBB: SOUP.OB) was the first penny stock to ever have a Super Bowl ad to promote their truly spectacular culinary selection. Seinfeld may have made Al Yeganeh famous by referring to him by a name which he never liked, but SOUP stock investors are about to have one of the hottest penny stocks in the food service industry. SOUP has just launched a new product line and is franchises are about to begin popping up in by one of the best franchisee’s in restaurant history.

On February 1, 2011, Soupman, Inc., parent company of the “Original SoupMan,” began trading on the OTC Bulletin Board. Although they never gave out penny stock advice during any episodes except the one involving Kramer, Newman and “The Sponge,” the Seinfeld finale aired to 76 million viewers in 1998, four years after Al opened his iconic restaurant on Eighth Avenue and 55th street. Few of the worldwide tourists, patrons or investors in the pennystock SOUP know that Al hated to be called the Soup Nazi. He is a shareholder in the public company but flies under the radar allowing the higher profiled celebrity investors like Reggie Jackson (“Mr. October”), Shaquille “Shaq” O’Neal (“Superman”) and Jason Alexander (“George Costanza”) to do the marketing for the best penny stock in the food service industry. After going public, SOUP.OB made sure to keep the original Soupman restaurant the exact same as it was when Al started it in 1984 and with the exact same rules which are in 8 languages on the wall.

FOR THE MOST
EFFCIENT AND FASTEST SERVICE
THE LINE MUST BE KEPT MOVING…….
• PICK THE SOUP YOU WANT
• HAVE YOUR MONEY READY
• MOVE TO THE EXTREME LEFT AFTER ORDERING! 

On December 15, 2010, Soup Kitchen was acquired by the newly formed Soupman, Inc. SOUP stock jumped into the spotlight after Al was featured in the Seinfeld Ad running on Super Bowl Sunday.  SOUP stock is mainly supported by the premium soups that are offered under the “Original Soupman” brand to consumers and the food service industry which Soupman manufactures and markets. The license SOUP stock has from Al Yeganeh, the legendary “Original SoupMan,” allows the company access to his recipes, name, likeness and other intellectual properties. Those same intellectual properties which earned Al’s Original world famous restaurant a best by “Zagat” rating, and in 2008, “Consumer Reports” magazine rated their Chicken  Vegetable Soup the “Best Chicken Soup in America.” Rated #1 by Zagat and praised by the New York Times as “Art, not Soup” set the standard for innovation and excellence long before the famous Seinfeld episode made it a cultural icon.

SOUP Stock Snap Shot:

Market Cap: 18.47M
Enterprise Value: 22.14M
Price/Sales (ttm): 13.64
52 Week High (4/7/2011) 2.60
52 Week Low (3/21/2012) 0.58
Shares Outstanding: 27.98M
Float: 19.31M
Revenue (ttm): 1.35M

SOUP Stock Moving Average / Average Volume:

5 Day Moving Average 0.6700 / 12,186
10 Day Moving Average 0.6840 / 11,628
20 Day Moving Average 0.7430 / 10,347
30 Day Moving Average 0.7740 / 8,580
50 Day Moving Average 0.8178 / 13,955
100 Day Moving Average 0.8902 / 9,381
200 Day Moving Average 1.2306 / 9,999
Ytd Moving Average 0.8147 / 13,170

SOUP Stock: Consumer Trends

Since SOUP stock’s foundation was established back in 1984, the Soupman brand has demonstrated that customers appreciate healthy and delicious products that sell at a fair price that reflects product excellence. If you have ever been to the original Soupman in New York, you will know that, regardless of who you are or what the weather is, you had better plan to stand in a long line outside and have your order ready. SOUP stock is about to take a major advancement in the respect that with revenues already. Soupman management are planning to make Soupman products leading national brand of premium soup, similar to how Starbucks took over the market from Folgers, by focusing on three areas of expansion:

  • Franchised Restaurants: Dedicated units in casino, airports, and other high-volume locations, and
    co-branded units similar to Soupman’s prototype N.Y. City location with Tim Horton’s, and other
    partnerships with Cold Stone Creamery and Red Mango.
  • Supermarket Distribution: Soupman offers ready-to-serve frozen products in BP-A-free packaging.
    SOUP.OB recently launched its shelf-stable Tetra Recart package which now allows Soupman products
    to stand side-by-side with canned soup giant Campbell’s. Soupman is undoubtedly poised to both take
    market share and expand the category.
  • Al Yeganeh: The icon who serves as SOUP stock’s face, “SoupMan,” will continue overseeing
    development of Soupman products and eventually make, with the “Original SoupMan” brand,
    SOUP.OB products the leading national premium-brand soup.

The Soupman product line consists of over 40 varieties of the “Original SoupMan,” Mr. Yeganeh’s original recipes. All are available to SOUP.OB franchise owners in bulk and, unlike most franchise requirements, each Soupman franchisee makes their own menu decisions based on their individual market conditions. Of the current Soupman franchise locations, the franchisees offer Soupman products along with other menu items such as fresh tossed specialty salads, wraps, toasted gourmet sandwiches, fresh brewed herbal teas and desserts which gives Soupman franchisees the ability to offer a wider variety of products, broader meal experience, and higher average amount spent per customer.

One example of Soupman’s successful franchise model in action is their location at the Mohegan Sun Casino in Connecticut. The restaurant opened in December of 2009 and, from a culinary perspective, features Soupman’s new line of “Best of New York” authentic deli sandwiches named after famous N.Y. landmarks such as Al’s 42nd Street Reuben and The Thanksgiving Day Parade. The franchisee of the Mohegan Sun Soupman location is one of the founders of Johnny Rocket’s Hamburgers, Lloyd Sugarman. Johnny Rocket’s in Miami was the location of my first date with my wife in 1992 so Mr. Sugarman is responsible for much more than the wealth of restaurant experience he brings to the “Original SoupMan” system.

As so not to limited themselves to one version of franchising, Soupman has also co-branded and licensed itself with quality partners such as Tim Horton’s, the largest Canadian and fourth largest publicly-traded quick service restaurant chain in North America with 3,627 system-wide restaurants, including 3,040 in Canada and 587 in the U.S. Other co-branded franchises included two locations with Ranch 1, a popular New York City grilled chicken chain. Wendy’s, which recently took over the #2 spot for the quick-service hamburger giants, has also done a similar co-branding with Tim Horton’s which goes to prove that SOUP stock should soon start to reap rewards for early investors.

SOUP Stock Management: 

Arnold Casale – CEO, Member of the Board of Directors 

As CEO of Soupman Inc., Casale:

  • oversees the entirety of Soupman, Inc.’s day-to-day business, including production and purchasing
    operations for our restaurants and our full line of products in supermarket distribution,
  • has over 40 years in the food and restaurant business,
  • developed the technology that made it possible to mass produce the classic New York-style par-baked
    bagel and the introduction of it into many fast-food systems,
  • co-founded Arnie’s Bagelicious Bagels, Inc. in 1991 to manufacture and distribute bagel products
    through in-store retail bakeries and food service before selling to the Quaker Oats Company in 1994.
    Arnie’s Bagels customers included McDonald’s, Disney World, Dunkin’ Donuts, Friendly’s, A&P
    Supermarkets and other major national chains,
  • owned and operated several retail “hand rolled” bagel shops where he perfected his formula in the
    70’s and 80’s,
  • was a franchisee owner of one of the highest-grossing Carvel Ice Cream shops in New York City for
    10 years, and
  • was instrumental in bringing Froze Fruit, an all-natural fruit dessert on a stick, to market.

Robert Bertrand – President, CFO

As president and CFO, Bertrand:

  • is responsible for all financial and administrative functions of Soupman, Inc.,
  • held this same position at Soup Kitchen International since 2004,
  • has 33 years of financial and operations experience,
  • was the COO and CFO of a startup manufacturer of healthy, indulgent chocolate products sold under
    the brand name of “SOBE,”
  • was a partner in Bullard Financial, Inc. a firm specializing in strategic financial planning for small
    businesses, their owners, and their officers from 2000-2002,
  • spent 20 years with two publicly traded companies, Industrial Acoustics Company, Inc. (from 1990 to
    2000) and Bairnco Corporation (from 1980 to 1990), starting as accounting manager and ultimately
    ending up as CFO and Senior Vice-President of Finance and Administration,
  • started his professional career in 1977 with Singer & Lusardi, a well-respected, independent CPA
    firm located in Worcester, Massachusetts.

Daniel Rubano – Senior VP of Franchise Development & Operations, Member of the Board of Directors

Rubano:

  • has over 25 years of leadership experience in franchising and restaurant management,
  • served as President of Ranch*1, a grilled chicken franchise from 1996 through 2001 as their Director of
    Franchise Operations,
  • served President of Johnny’s NY Pizza, a full service restaurant franchise; and President of Rollerz Wraps,
    a quick service salad and wrap franchise, all of whom were owned by Kahala Corporation. Kahala is the
    franchisor of over 3,000 restaurants, including such well-known names such as Cold Stone Creamery,
    Ranch*1, Blimpie, and Taco Time,
  • was also a member of Soup Kitchen International’s Board of Directors from 2003 until 2006.

SOUP Stock Celebrity Shareholders and Endorsers: 

Basketball legend Shaquille “Shaq” O’Neal has a number of franchises such as 24-Hour Fitness franchises and Five Guys Burger and Fries along with a handful of others and if you ever had a chance to meet and shake hands with “Superman” like I have, he has some big ass hands. As an investor and pitchman for The Original Soupman, Shaq claims the decision was easy; “I tasted it one day. It’s a good product with a great team. My favorite is the lobster bisque, It has lobster chunks.”

Baseball Hall of Famer and Yankee legend for his “hot bat” in October post season play, Reggie Jackson joined the Board of Directors after having eaten the chicken vegetable, the lobster bisque and the wedding soup. Mr. October is no investing fool as he has made more money out of baseball than he did while playing having always invested intelligently in appreciating assets. Whether it was classic cars or buying Apple and GE stock, Jackson has always been known for his investment savvy amongst the baseball playing community which is why his connection to Soupman makes the stock seem like a true champion.

Seinfeld co-star Jason Alexander has even gotten involved with the company in a non-disclosed way. Many people remember when George Costanza was thrown out of the Soupman’s store in the famous “Seinfeld” episode about the Soup Nazi, but few know it happened again in real life when he tried to return to the Soupman after shooting the episode for a bowl of soup.

Please note: The three celebrities bought into the concept, they’re not hired talent. All three of them have put their name and money into SOUP stock for one simple reason, “They liked the Soup.”

Bottom Line: SOUP stock price is not going to going to reflect that of Starbucks or Campbell’s event though Soupman, Inc. products are now available in Tetra Recart packages for the first time. $6 billion is recorded annually in the main soup aisle where Soupman is now able to stand adjacent to their canned competitors. Soup is an ubiquitous food offering which is why a store with soup as the draw is not a risky business. Is it profitable? Look for yourself at the most recent 10-K filed by SOUP.OB. Other than the debt which is the purchase of the original Soup Kitchen and all the assets of it, the company is structurally healthy.

Add SOUP.OB as one of those penny stocks you have a look at every now and then to see what’s going on and get yourself online and order the soup if you can’t get to a supermarket that has it or a franchise location to get it served “Soupman” style. Two things I can lay my hat on are is when in New York City, you must eat at both the Carnegie deli and the “Original Soupman,” and that once you try the soup, you will too find yourself logging into your online brokerage account to join Mr. October, Superman and Costanza as an investor in what could wind up being a great penny stock in the months and years to come.

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