) finally have a reason to start dreaming. Stock price around $0.01 last week, stock price going for $0.1 this week. All it took was a few announcements about opening new locations. Yet, a broader view of the situation reveals a little different picture of this company, one less pleasant than the half-naked women smiling and serving coffee to clients.
A hybrid between Starbucks and Hooters, as some people refer to it, this May the company experiences the highest interest in its stock since inception. For the past three days, almost 14 million shares changed hands, making up for a shocking increase in the stock price. The session yesterday closed at $0.079, but it is possible that the run continues at least until the end of the week. Just one more enterprise that proves that sex sells, hence the above parallel with hooters.
Yet, as mentioned, this is what the situation looks like at first sight. Great recent stock movement, optimism due to the new locations, which should mean additional revenue for the company. Combined with pretty half-naked women serving your coffee, it seems that the model is right. There is one more model of Baristas Coffee Company, however, for which the local media reported and which might not work OK on the long run. It is the model of not paying your employees, according to the investigation made by Kiro TV.
According to it, a total of 16 women who worked for the company have filed complaints for receiving checks with no signature. The whole investigation, including video materials, can be found here. Now, the company's management did not appear to let people see their point of view, which is important in such situations. Yet, as more and more people get interested in the company's stock, they would no doubt do research on the company and find issues like the above.
The truth of the matter is that most shareholders do not care at all about whether the company has paid or not paid to its employees, what they care about is how their investment is doing. The thing is that if this is really a regular practice of Baristas (not paying employees), why would anyone expect that it would work for the well-being of the stockholders? Just one of the many interesting questions that come along when projections are made about the company future.