In This Edition... Market Near an Inflection Point The Pickle is Growing Again Earnings On Tap For This Week Market Near an Inflection Point On Monday I mentioned the market was in a trading range. The reason I did so was in anticipation of something like what's happened since then.... the S&P 500 continued to sell off all the way to the lower end of that range, almost. I drew my line in the sand at 845, while today's low ended up being 850.48.  As a result, we may be on the verge of a third short-term bottom in a little over a month. Or, we may be on the verge of another meltdown. The big plunge today only took us to the inflection point.... and not even quite that far, actually.  Before we all start jumping to conclusions, I wanted to pass one last idea along - don't freak out just because the S&P 500 trades under 845 for a while (as in a day, or even a few hours). Why? I've got a feeling there are a few million traders watching the same line, knowing there are a lot of stops just below that level. It wouldn't take much to push the market a little lower than 845, only to stop out all those traders. Then, when the selling gets triggered, some bigger fish could swim in and buy into that selling (and consequently pick up some bargains).  If the indices stay under recent lows for a day or two, or show no hint of a rebound (or if the selling volume finally picks up), then the market could make a legitimate leg lower. I'd be suspicious of a mild bearish move or gap lower though, especially if there was no follow-through.  I just don't want anybody to get faked out needlessly. Just for the record, I'm not buying yet, but I might be buying if the bears pass up the chance to take us even lower.  The flipside? The VIX is on the rise again, and seems to have some room to run before running into the upper Bollinger band at 80. I'd be kidding myself if I said I wasn't at least wondering about the VIX reaching 80 right about the time the S&P 500 reaches 2002's low of 768. Yikes.  Stay tuned to the blog on this matter - this is going to get real interesting.    The Pickle is Growing Again You don't need me to tell you residential real estate values have taken a hit over the last couple of years. That's what happens when you experience a recession at the same time you're dealing with a credit crisis. Commercial real estate prices, however, hadn't quite followed suit ...until now. With commercial leasing terms (i.e. rent prices) finally turning favorable for occupants/renters, it's actually a great opportunity for a company to expand at a minimal cost. Case in point - Spicy Pickle Franchising Inc (OTCBB: SPKL). Commercial real estate landlords have finally started to adjust their lease rates to reflect the actual supply and demand. As such, Spicy Pickle has restarted their expansion by adding two new store locations... one in Houston, and one in Vancouver.  The Houston store will be the first of several for that franchisee, and is expected to be ready to roll within two months. The new Vancouver unit will actually be a Bread Garden Cafe... an already-established name with our neighbors to the north.  In the press release (below) CEO Marc Geman specifically discussed the real estate market issue, and it's not the first time he's done so; the matter has been brought up a few times in recent releases. And, I can verify myself that - for some reason - commercial real estate owners with storefront real estate just didn't want to accept reality.  I believe today's news is a sign that landlords finally 'get it', so I expect more leases to be signed in the near future. It'll be good to see the company's growth plans get back on track. As for the stock, I've been semi-impressed with its recent resiliency; it's held up much better than the market has over the last few days. I doubt this news by itself will immediately light a fire under any potential new buyers. However, we haven't seen - and are not seeing now - any significant selling pressure or large-block bids. I see SPKL as one of our better recovery possibilities, so I suggest keeping it on your watchlist in case we get a bullish technical move.   Earnings On Tap For This Week (Or Next) I mentioned it on Monday, but I'll say it again today ...Spicy Pickle should be announcing their quarterly numbers any day now. I'm still looking for an increase in the top line, even though expansion in 2008 slowed down from its 2007 pace. I don't think we should expect a net margin; I just want to start seeing progress towards a positive cash flow. The net will take care of itself eventually.  I'll send an update when it's out, and speaking of earnings...  In the last newsletter, I also mentioned Voyant International (OTCBB: VOYT) was slated to publish their quarterly earnings figures sometime this week. I forgot to mention China Energy Recovery (OTCBB: CGYV) could be filing their quarterly update any day as well.  In Voyant's case I don't expect a net margin yet, but China Energy may well do it this time around. They swung to a profit a couple of quarters ago, then took a one-time charge last quarter. Barring any other one-time expenses I'm not aware of, I think CER could get back in the black on a more permanent basis this quarter. I'm quite certain the top line will be strong ....perhaps strong enough to garner some more institutional-level interest.   Spicy Pickle Announces Two New Lease Signings and One Closure Expansion Program Starting to Get Back on Track  Wednesday November 12, 4:10 pm ET  DENVER, CO--(MARKET WIRE)--Nov 12, 2008 -- Spicy Pickle Franchising, Inc. (OTC BB:SPKL.OB) fast casual restaurants announced its expansion program is beginning to get back on track.  Marc Geman, CEO of Spicy Pickle, stated, "The recent financial crisis has put the brakes on retail development. Now, for the first time in months, expansion activity is regaining some traction, and we are starting to see the early signs of a return to expansion in the system."  One new lease in Houston, Texas has been signed for our Spicy Pickle chain and another new lease for our Bread Garden Urban Cafe chain in Western Canada.  The new Spicy Pickle in Houston will be located at an existing end cap space at the South East corner of I-10 (Katy Freeway) and Kirkwood Road, in the Nottingham Shopping Center. It is positioned on the eastern side of Houston's "energy corridor"; already one of Houston's largest employment centers. The space is expected to be delivered within 60 days, and architectural planning is already underway.  The new location for the Bread Garden Cafe extends the reach of the chain to the magnificent setting in Vancouver on the campus of the University of British Columbia. This new restaurant will be located in a newly constructed housing project a block from the student union and in the middle of university housing. It has its own heated outdoor seating area which is weather protected.  Marc Geman, CEO of Spicy Pickle Franchising, Inc., commented: "The Houston location marks the end of a long process for our franchisee. From here, we can get started on the design, build out, training and grand opening. The premises will be available to the franchisee at the start of 2009. Our Houston franchisee is already looking at additional sites."  Mr. Geman further stated: "As we said before we have been working on sites in the Vancouver area even as we were negotiating the purchase of the Bread Garden Urban Cafe chain. This new site, along with the new Vancouver Airport site, represents the fruits of our labor and the hard work on the part of the team in Vancouver.  "It's a tough environment for expansion domestically, but there is a bright spot. Commercial real estate prices are finally starting to come down, and we are now in a position to negotiate some very favorable terms in prime locations for those franchisees that are ready to expand. We are on the verge of a number of additional new lease signings. We are still looking for locations in several US cities. Our Canadian subsidiary, Bread Garden Urban Cafes, is also looking for a number of additional locations. Western Canada is not experiencing the heightened financial turmoil we have in the US, and we anticipate continued expansion there as well."  The Spicy Pickle location in Sioux Falls, South Dakota was closed without notice to the franchisor in October and the premises, in full operational condition, was abandoned. The franchisee apparently has left the area. We are looking for another operator and have been in contact with the landlord who has secured the premises.  Mr. Geman commented, "In these economic times I expect we are going to see some fallout from franchisees that are not sufficiently capitalized to work through an economic downturn. We are confident the whole the system will continue to grow and most likely will be stronger by the time the economy starts to recover. Overall system-wide sales are what become important to achieving profitability and we are cumulatively adding to those sales.  "At the corporate level, we have been taking some cost savings steps to bring our overhead down to a level commensurate with the new environment and our ongoing cash flow. We plan to increase revenues while reducing costs at the corporate level to protect our shareholders as we move through this painful recession."  About Spicy Pickle(TM):  Founded in 1999, Spicy Pickle Franchising, Inc. (OTC BB:SPKL.OB) serves high quality meats and fine artisan breads, baked fresh daily, along with a wide choice of eight different cheeses, twenty-two different toppings, and fourteen proprietary spreads to create healthy and delicious panini and sub sandwiches with flavors from around the world. As a leading "fast-casual" concept, Spicy Pickle offers menu items that are far beyond traditional fast food but without the price point of casual dining. The hallmark of a Spicy Pickle(r) restaurant is quality, service and an enjoyable atmosphere. The company is headquartered in Denver, Colorado, with restaurants open or under construction across 14 states and several more in development nationwide. Spicy Pickle Franchising, Inc. also operates as franchisor for Bread Garden Urban Cafes, a concept with 11 restaurants in the metropolitan Vancouver, Canada area. Bread Garden Urban Cafes serve coffee, pastries and breakfast items as well as lunch and dinner along with a wide variety of desserts. To find out more about Spicy Pickle (OTC BB:SPKL.OB - News), visit our website at www.spicypickle.com/.  Forward-Looking Statements:  Certain statements in this press release, including statements regarding the number of restaurants we intend to open, are forward-looking statements. We use words such as "anticipate," "believe," "could," "should," "estimate," "expect," "intend," "may," "predict," "project," "target," and similar terms and phrases, including references to assumptions, to identify forward-looking statements. The forward-looking statements in this press release are based on information available to us as of the date any such statements are made and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include, but are not limited to, the following: factors that could affect our ability to achieve and manage our planned expansion, such as the availability of a sufficient number of suitable new restaurant sites and the availability of qualified franchisees and employees; risks relating to our expansion into new markets; the risk of food-borne illnesses and other health concerns about our food products; changes in the availability and costs of food; changes in consumer preferences, general economic conditions or consumer discretionary spending; the impact of federal, state or local government regulations relating to our franchisees and employees, and the sale of food or alcoholic beverages; the impact of litigation; our ability to protect our name and logo and other proprietary information; the potential effects of inclement weather; the effect of competition in the restaurant industry; and other risk factors described from time to time in our SEC reports.  Contact:  Company Contact:  Marc Geman  Spicy Pickle Franchising, Inc.  (303) 297-1902  http://www.spicypickle.com Investor Relations Contact:  Pamela A. Solly  Cirrus Financial Communications, LLC  (720) 489-4912  http://www.CirrusFC.com Source: Spicy Pickle Franchising, Inc.