Earnings were good but there are clouds on the horizon....for all stocks. Interest rates, summer dol drums, Obamacare, less quantitative easing, minimum wage, taxes, spending cuts, etc. Good thing that Rick's is primarily in Texas because the rest of the country is not in good shape.
I agree - the stock is cheap, especially at well under 1x sales. If the earnings estimates are even close, the stock should double in the next 12 months, especially as the economy improves and people feel better about spending money at the topless bar. To be honest, I don't understand why RICK doesn't just go private. The market is not giving them a proper valuation but privately owned, RICK would be a cash cow. I see $10 happening before the next earnings report and maybe 12 by the next one - and 12 RICK would still be too cheap at only 10x earnings.
The economy of 2012 was the best economy you'll be seeing for a long long time. Obamacare and his other tax hikes will hit HARD. More and more men won't be able to pay for lapdances and other unnecessary things.