U.S. equities have started this week on a disappointing note, with all three major indexes down so far. However, the dovish stance from the Federal Reserve could boost equities in the second quarter.
The first quarter was a challenging one not just for U.S. equity markets but even the global market. Risk assets struggled at the start of the year amid concerns over a selloff in commodities, slowdown in China, uncertainty over future rate hikes in the U.S. and negative
interest rate policy implemented by several developed world central banks.
In the last few weeks though, stocks have made a strong recovery and this recent pullback could be due to some profit taking.
Despite the pullback in the broader market, BAB Inc. (OTCQB:BABB) shares perked up yesterday albeit on lower than average volume. Based in Deerfield, Illinois, BABB franchises and licenses bagel and muffin retail units. The company is also involved in the sale of its bagels, muffins and coffee through nontraditional channels of distribution.
The company franchises and licenses Big Apple Bagels(R), My Favorite Muffin(R), SweetDuet(R) frozen yogurt and Brewster’s Coffee.
Even though yesterday’s share price was up, at last check on Tuesday, BABB shares were trading down 3.28% at $0.59 with shares overall trending higher over the last few months.
BABB shares popped yesterday after the company reported its financial results for the first quarter of fiscal 2016. For the quarter ended February 29, 2016, BABB reported revenue of $581,000, compared to $492,000 reported for the same period in the previous year.
The company’s net income for the quarter was $89,000, or $0.01 per share, compared to a net loss of $246,000, or $0.03 per share reported for the same period in the previous year.
BABB’s total operating expenses for the quarter were $492,000. This is a significant reduction from the operating expenses reported in the same period last year. In the same period in fiscal year 2015, BABB had operating expenses of $738,000.
It must be noted though that the operating expenses in the previous fiscal year included $243,000 in expenses related to the settlement of a lawsuit against BAB Operations Inc., a wholly-owned subsidiary of BAB Inc.
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