Now the shareholder equity - actually deficit - is $32 mil. I guess this will continue until they stop worrying about increasing EPS that is forcing the buyback of shares with borrowed money. Obviously, 100% institutional shareholders are happy. I wonder who and why keep buying these shares. Seems like some kind of shell game to me.
I am no financial wizard by any means. But isn't there a huge gap between book value and the share price? As someone else posted, their debt went up, outstanding shares came down and EPS "beat" by 2 cents. So increase debt, buy back shares and "beat" pre-defined EPS by 2 cents and voila! wall street will run it up by another $10. Rinse and repeat every quarter. This stock is owned 102% by institutions and they just play with it.
The Aliso Viejo On the Border was closed. The food was good, but I guess volume wasn't enough. This is a really good location providing most of the restaurants for the entire city - not much competition and was the only Mexican restaurant in the area. The Chili's in the same center is awful (the food) and the Macaroni Grill isn't very good and is slow. If they can't be successful in this affluent area with little competition, how are they doing elsewhere?
Earnings per share: $2.26 for yr ended June 2014 vs $2.20 in 2013 (almost no growth)
PE = 23x (why?)
Book Value: $63 million at June 2014 vs. $149 million at June 2013
Tangible BV: -$89 million at June 2014 vs. -$3 million at June 2013
Market Cap = $3.3 billion (why?)
Expected free cash flow $180 - $190. (again how does this justify $3.3 billion market cap?)
Answer: Company keeps the market cap inflated by borrowing money to pay dividends and buy back stock. Not a good business model. The big boys won't hold forever.
Sentiment: Strong Sell