I'm very disappointed to see all the "I told you so's", gloating, and apparent pleasure in seeing Granite City having problems. I am an investor, and frequent customer. As an investor, I knew there was a risk, and didn't put in more than I could afford to lose. As customers, my wife and I really like the place, and will be very sad if it doesn't make it.
Don't pay attention to them. Most are disgruntled ex-employees, people that lost money and can't take responsibility for it and/or others just want people reading the MB to sell or not buy, leaving the cheap stock for them. Hell, they probably were buyers weeks ago and are ticked off. Company is fine.
I was a manager for GC for almost 2 years. I can say that losing Tim and Art will be the death blow for this company. I left due to the ridiculous hours they expected their manager's to pull but Tim and Art were excellent at their jobs. The first time I met Tim he was on his knees scrubbing a door with his dress clothes on. Art was definitely not the friendliest guy in the world but he was a teacher and he expected perfection. I actually ended up liking the guy quite a bit by the time I left. I like how these guys end up being the scapegoat for the mismanagement on the business end. GC lost several quality managers in my time because the quality of life was lacking but I think it was due to the drive for success rather than the lack of compassion or regard for people. Now that these two are gone GC will go tits up in no time.
No, management is stunningly clueless. I wonder if they ever went to business school? If they knew what they were doing they would not have added locations when the business model is bleeding cash. Especially if your burn rate is about to exhaust your total cash reserves. You FIX the business model, CUT COSTS to improve the bottom line, ELIMINATE some executive positions, and get RID OF ALL the staff overhead involved in expansion plans. You can always gear up later to expand, but ONLY after you fix the basic business model so it earns a profit. It is utterly senseless to add money-losing locations when you are running out of cash. This is not rocket science - it is business 101. Frankly, I think it might be time for the board to SACK the entire myopic executive corps, and hand the reigns over to a restaurant turaround specialist as soon as possible.
sums it up for me, too. Frequent the GCFB location here in Davenport, Iowa quite often and invested a few dollars in the company stock when it was selling in the mid 4's/share. I'd like to think that the stock will rebound at some point in the future, but the economic conditions are not favorable for this, or any other, "discretionary spending" stock right now. Will the company go bankrupt and render my shares worthless? Who knows. But unless I have a big winner in my trading account between now and the end of the year (yeah, right...) I'll hold on until either the stock is worthless or it rebounds to a place near where I bought it and then I'll determine whether or not its worth continuing to own GCFB.
They are just following a very normal path. The initial idea sounds good so there is a flurry of buying pushing stock higher, followed by losses as the company expands. The stock drops, some stumbling on different stores is noticed by investment community dropping stock further. During this time the company has enough established stores to now overcome the losses from new store building and small profits appear. This is time to buy. Learned that lesson following Dave's Famous BBQ. Bought for a client at $16, sold days later at $20 and watched it fall down for years after. Now it has rebounded. Same will happen here.