market just opened and I added to my position using some long dated calls - August expiration, strike price of 10 (paid .50). I own shares outright as well, but the options just looked so cheap. The earnings came in solid, but it doesn't seem like a lot of people are following the stock. Nevertheless, if you put a 12 multiple on 1.20 in earnings, this seems like a $14 stock - and a 12 multiple seems low to me. 1x sales is right around $9.50-10 per share. So that is my short term target for RICK, with $14 doable later in the year. Even though I expect the overall market to correct, and RICK will dip with it, I feel like 2013 should be a good year overall for the market and this is one of the most undervalued stocks out there in my opinion. Might just have to go to Jaguar's and do some research.
EPS is meaningless in a mico cap with under 10M shares. EPS is too easily manipulated. They should have written down some of the $94M of goodwill, but the CEO obviously has a chip on his shoulder and wanted to post a good EPS to impress his skeptics. They could have EASILY posted a $5/share loss!