Noble Roman’s, Inc. (OTCBB:NROM) Dropping Since Q2 Filing
Noble Roman’s, Inc. (OTCBB:NROM) is a rare gem in the OTC Markets. A company that has a running business, generates revenue and hasn’t undergone promotional campaigns. With all that, what could the reason for their recent decline be?
All in all their stock has been doing good this year as it passed the $1 mark for the first time since 2011. They dipped below it for a month or so, but that period ended in the end of May and they have been climbing the charts since then.
After NROM‘s latest quarterly report was filed, however, they seem to be heading in a bad direction as they have lost a total of 16% over the course of the last 5 trade sessions. Indeed when you look at their financial statements they turn out to be a profitable company and we can see an increase in net income from the same period last year, so at first sight it seems that they should be moving in the opposite direction.
If you are interested in taking a look for yourself we are listing the numbers of prime interest from their latest quarterly report covering the period ended June 30 below.
- cash: $265 thousand
- total current assets: $3.7 million
- total assets: $17 million
- current liabilities: $1.6 million
- total liabilities: $2.3 million
- revenue: $1.98 million
- net income: $455 thousand
The $100 thousand increase in revenue that is visible when you take a look at their financials for the same period last year is a good sign, but they still have a lot more to go to catch up with the $703 thousand they had in Q2, 2007. If they can reach these numbers they have a chance of regaining some of their previous price from 2007 when they were at $7.40, but we doubt they will get that high with the expansion of the reigning fast-food chains like McDonald’s, Subway, Quiznos and Taco Bell.
Even though they provide good franchising opportunities they lack one thing: Good Marketing. First of all, you can’t find their locations easily and even though we found out that they have license agreements in all 50 states plus the Bahamas, Washington, D.C., Puerto Rico, Italy, Canada and the Dominican republic we weren’t able to find any sign of activity outside the U.S.
Indeed they have a lot of restaurants (not above 1400 as mentioned in Wikipedia, but more like a few hundred at best), but they are mainly located in Indiana and some of the bigger cities like Las Vegas, Washington D.C and Los Angeles. Not to mention that there is only one Noble Roman’s pizza shop in both Washington and L.A., which simply doesn’t allow them the opportunity to fight back against Papa Murphy’s take-n-bake franchise, which is spread all over the country with thousands of shops.
With all that in mind be sure to do a lot of due diligence and weigh out the risks before jumping on NROM‘s train. After all, even though they have decent financials for an OTC Markets company they still haven’t quite found their place among the big players in the fast food industry.
Another company that is taking on the fast food market is GRILLiT, Inc. (OTCMKTS:GRLT), who have been doing fine, stock-wise, since the end of last month. They are working on providing a healthy alternative and will compete with Subway’s and Quiznos’ subs with healthy wraps, salads, noodles and rice.The upward movement generated by the paid promotional campaign and optimistic press releases skyrocketed their price 1515% in a little less than a month and they are currently priced at $4.20 per share.
On the other hand Sould and Vibe Interactive Inc. (OTCBB:SOULD)’s stock isn’t doing well as they dropped below the $1 barrier since the start of today’s session and are currently priced at $0.78.
