Stripp out corporate expenses and we have a profitable company that is worth $6+ per share in a buy-out. The concept is a winner the current economy for chains like GCFB is not. 25 Mature units with current G&A overhead is break-even.
Sure it seems incestious, but how is it any different than, say a NFL owner financing a new stadium for his football team with a loan from a bank he co-owns?
Major construction companies do this kind of practice all the time.
In reality it just means that the lenders GCFB approached thought the company was too much a risk to give a loan to right now. To me it's no surprise that they didn't get a loan (see my earlier posts), considering the major lenders Citigroup, etc. are all having major problems right now.
Strip out Corp. Expenses? Why those expenses? This Co. IS NOT a buyout target. Better to just erase that thought. Stock is getting crushed because they are not opening stores at the pace they claimed they would be. Claim: 7-8 stores in 2007 vs. reality of 3 stores? That's not a growth stock. Not a holder but follow co.
<< Stock is getting crushed because they are not opening stores at the pace they claimed they would be.>>
Actually, the stocks getting crushed because the restaurant level margins are currently in the tank to the point that if continued will result in the bankruptcy of the company.
I wonder if Landry's Restaurants has any interest in buying this company. I believe Landry's purchased Saltgrass Steak House and Seafood restaurants for around $75 million several years ago. They also failed to purchase Smith and Wollensky earlier this year and might be looking to expand their geography as they are primarily Houston-area based. They would definitely have the money as they sold the majority of Joe's Crab Shack last year.
The boyz over on BJRI didn't like the idea of BJs buying out Granite City. Although, I still argue that GCFB and BJs would be a really good fit together- BJ's is sitting at 60+ restaurants and is trying to move east, and isn't in the same areas as GCFB yet. It'd be a good way for them to pick up a lot of stores and a new region relatively fast.
Similar restaurant decor`- stone, wood and leather, tvs... Custom microbrews.
Fermentus Interuptus has to be very attractive to a larger chain microbrew chain too. BJ's would only have to build 2-3 more worthouses and they'd cut their brewing costs significantly while maintaining quality control.
Of course, there is the matter of buying the patent too.
At what point do we decide this stock isn't going to rebound? It's flirting with the $2 range lately.
Even Yahoo revised it's sunny forecast value of $8/share to $7.15/share.
Looks like I may have an unwanted tax write-off for the end of year, if this doesn't kick back up to the $4 range and soon.