it appears the screwed list is growing. Maybe
it's not all the nega-posters. Maybe it's Ruby's B.S.
or its selective enforcement of policies that are
causing all the problems. I have spoken with 2 managers (
one current and one "retired" ) and they are both
saying the same thing.
As for posting under
different names, I have always posted under Ben411. You
probably know who I am.
I had forgotten just how many different posters
had complained about being screwed over by this
company. It was very informative to review both the fact
I believe that briar patch was
the one who said that the truth is usually found
somewhere in the middle. Using that logic, the truth would
still be very upsetting to most.
While you may
not care who would invest based on this board, you
would be amazed at how many of your managers and
competitors are keeping track of these events.
I guess the nega-posters still don't know diddly!
I am less effective these days of getting under
their skin, I just don't have the time.
I do stand
by one thing though;
The nega-posters have in
FACT change aliases and stick to vague stuff all the
way back into the 100's messages. No one believes
you, and no one trusts you. Just as it is obvious that
I am pro RI; you obviously are anti-RI
cares. who would invest based on this board.
They reserve for the notes received from the
franchise, but in the quarterly reporting they do not
disclose the amount of the reserves, and based on the last
10-Q, its seems unclear on how much of the notes were
paid during the quarter.
When the notes are
paid the reserve is released (I guess, the financials
don't show the reserves) against operating expenses.
This distorts true operating expenses.
company places an emphasis on how they have achieved
savings through economies of scale, but when adding back
the note payments, I don't think there are true
savings as a percentage of income. Of course they could
easily show us whether there are real savings are not by
disclosing the reserves by quarter, or showing the uses in
The reason this stock is not
moving up is that most analysts see through this, and
while the company is posting some impressive growth, if
they play games with something so simple what other
games might be there that aren't so obvious.
looked through the last Q for these reserves and there
application and could not find the amounts. You said you read
through the financials and find them clean so answer two
questions. What is that reserve balance at the end of the
last quarter? What is the amount of the payments on
the notes last quarter? And if you are unable to
answer these questions are the financials informative as
they should be, or just presenting Ruby's best
Asked before and Buford responded but even he was
unable to explain the use of these reserves.
Just that in reversing the reserves they take it
against operating expenses as the cash is collected,
distorts real earnings. Case in point is recent article re
IBM where you have to work pretty hard to figure out
what earnings are after taking effect for gains and
one time items.
They don't provide a breakdown
of the reserves or how they are affected quarterly.
When bragging about increases in efficiencies as
operating expenses as a percentage of sales is down, they
don't point out they are really slightly up if the note
receivable collections as shown in the cash flow statements
is taken as a credit against operating
If anything, I feel reserves are overstated as a way
of "leveling" earnings and providing cushion to meet
What makes you feel that the reserves on the
franchisee notes are (or may be inadequate)? It looks like
both past and pending sales are for over half cash . .
. in cases where the buyer is also taking
"development rights" we're dealing with deep pockets,
I've gone over the financial discussion and the cash
flow statement and I can't figure out how reserves
would be adjusted each year . . . this dog not only
doesn't bark, he leaves no footprints.
financials seem pretty clean . . . any other pointers?