All of these comments about a 10,000 share block holding the stock price back? Who cares. This is bizarre. CEO gets on the conference call and explains how they are going to unlock about 100 million in value (or 55 million if you subtract the debt) and the stock goes up six cents? THE MARKET CAP IS 80 MILLION. The business is earning 1.20 per share and growing at 20-30% going forward. I'm not doing anything. One day, some institution is going to wake up and/ or RICKS is going to spinoff the real estate. We're going to have a 500,000 to 1,000,000 share day and the shorts are going to get cooked. I remember when this stock was trading 200,000 shares a day or more. I just don't think there is a lot of stock for sale and when the shorts need to cover its going to be ugly. The business is going to be strong into the end of the year as the new clubs come online and the economy improves. Either that or I am missing something but it doesn't seem that way. It just seems like RICK is not followed adequately by the street. I probably should buy more.
Nobody does pay attention to this company. Great story and solid execution don't mean much if nobody listens to the conference call. The press release didn't say anything really, so that won't help tell the story to anyone who just happens to come across the press release. The other thing you might have is people will catch the conference call over the weekend and it may react on Monday. I always try to remember the VCGH letter of intend to merge.......it took the market an entire day before it realized how great that merger would have been. It actually dropped significantly the first trading day afterwards. Day two, it started to skyrocket! Ricks will probably end the year with an EBITDA over $30M with prospects of $35M plus EBITDA next year? If not greater......at some point the market will react. Though I wouldn't doubt part of the problem you have right now is that someone does wish to build a position in the stock, but is finding it near impossible to not move the stock by building a position.
Also, there are only 62,000 shares shorted at the moment. I don't think there will be much of a squeeze on this stock when it does move. That just goes to show more evidence that Ricks is invisible to the market overall, and today's market action has nothing to do with the quality of earnings or the company!
Hey Gizmo, this CEO has been pumping this for 14 years. That's what CEO's do when they aren't giving themself a raise, flying around in the company jet, playing golf, or getting free lapdances.
He said EPS should have been .34 (without the "one-time" fees) in the year ago quarter. So EPS really FELL .05 or 14.71% Y-O-Y. How can that be with 15 more clubs than a year ago? It's because the new clubs added more costs and interest expense than they added revenue.