BAGGERS DAVES BURG COM USD0.0001 (OTCMKTS:BDVB) Is Today's Stock Focus

BAGGERS DAVES BURG COM USD0.0001 (OTCMKTS:BDVB), the full-service restaurant and bar running at 18 locations in Michigan, Ohio and Indiana, is the latest interesting stock to hit the OTC recently. On May 26, 2017, it was put out that the company had gained clearance from the Financial Industry Regulatory Authority (FINRA) for Spartan Securities to make a market in the stock with the “BDVB” ticker symbol.The company was founded in Michigan in 2008, and has been operating since then. We did some research and found out that the financial situation is outstanding. It has a considerable amount of cash on hand, a lot of properties, and very little liabilities. We will tell you more in this article.Source: baggerdaves.com. BusinessThe first restaurant was opened in January 2008 in Berkley, Michigan. The growth of the company since then has been outstanding. As of March 26, 2017, 18 Bagger Dave’s restaurants are in operation;, fifteen in Michigan, one in Indiana, and two in Ohio.BDVB is based on a unique, full-service, ultra-casual restaurant and bar concept. The company provides a "warm, inviting and entertaining atmosphere through a friendly and memorable guest experience". The burgers are different since they are "locally-sourced, never-frozen prime rib recipe burgers, all-natural lean turkey burgers". Additionally, the restaurant serves "hand-cut fries, locally crafted beers on draft, hand-dipped milk shakes, salads, black bean turkey chili". We have not yet tried the food. Please add a comment if you have.SourceThe company is quite profitableThis is a company that was sold by a bigger corporation, Diversified Restaurant Holdings, Inc., which operates 64 Buffalo Wild Wings Restaurants. This is from the annual report:

"On August 4, 2016, DRH announced that its Board of Directors unanimously approved a plan to pursue a tax-free spin-off of its Bagger Dave’s business. Specifically, DRH contributed its 100% owned entity, AMC Burgers, LLC and certain real estate entities into Bagger Dave's Burger Tavern, Inc., a newly created Nevada corporation ("Bagger Dave's" or "Bagger"), which was then spun-off into a stand-alone, publicly-traded company on the over-the-counter exchange." Source

What does it mean? It seems that Diversified Restaurant Holdings, Inc. created the company some years ago, realizing that the business was great and decided to take it public. The fact that company used to be operated by a larger and older company should be appreciated. The company acquired the know-how from an older company already in the business. This is not a start-up business being operated by amateurs. It may be one of the reasons to justify its success. Let's review the financial figures now.BDVB seems to be a cash cow, as the amount of assets on the balance sheet is quite substantial; approximately $2 million. Additionally, the amount of properties is quite important too; approximately $12.6 million. Be sure to note that the amount of total assets is approximately $16.2 million, which is about 5x times the amount of liabilities.ASSETS March 26, 2017 December 25, 2016Current assets Cash and cash equivalents$ 2,017,705$1,818,813Accounts receivable586,232200,517Inventory328,618367,988Prepaid assets77,008173,358Total current assets3,009,5632,560,676 Property and equipment, net 12,633,15314,382,673Intangible assets, net588,031640,275Total assets$16,230,747$17,583,624SourceOn the other side, it is worth checking that the company is not using banks to finance its operations. The amount of long term debt is almost zero. This is very good news.LIABILITIES AND STOCKHOLDERS’ EQUITY March 26, 2017 December 25, 2016Current liabilities Accounts payable$ 711,137$493,300Accrued compensation247,449-Other accrued liabilities480,410326,966Current portion of deferred rent125,162140,431Total current liabilities1,564,158960,697 Deferred rent, less current portion 933,7461,035,795Other liabilities347,891351,950Total liabilities2,845,7952,348,442SourceMarket reactionConclusionBDVB is a profitable business offering a very convenient value proposition that customers seem to appreciate. The growth of the brand and the number of restaurants established are substantial. Additionally, the balance sheet shows that the company is able to create considerable amount of cash. To sum up, BDVB may become a very popular stock on the OTC. As more penny stock investors find out about the company, they may push up the share price. Hence, try to stay alert. We will be updating our subscribers as soon as we know more. For the latest updates on BDVB, sign up below!Disclosure: We have no position in BDVB and have not been compensated for this article.