• Earnings okay but not great due to high expenses - it's not an estimate "beat."
• Have to admit REIT off the table - a little detail in Internal Revenue Code was overlooked.
• Have to admit Hart case is at summary judgment phase, and hearing was held on July 31; summary judgment ruling likely before year end. (Rick probably puts positive spin on it, but it's still a lot of uncertainty even with spin.)
• Have to update status of other lawsuits.
• Have to admit Ricky Bobby and Vivid Cabaret names have trademark and unfair competition problems.
• Have to admit Pole Tax is still at Texas Court of Appeals level, so any final decision is still more than a year away.
• Maybe they bought 33rd. St., and if so, that's a positive to an extent; but it doesn't really outweigh the negatives.
I bet the wrongful death lawsuit will be over $10M. A Texas jury just awarded a family $11M for a wrongful death suit against a strip club operator. And that victim was there by her own free will. In the Rick's case, the young girl was minding her own business. These courts don't like strip clubs. Especially if it's a women judge!
Sentiment: Strong Sell
Does not have to be. That's my point. Too cheap to pass up. 140K shares today - the word is spreading the message is getting out. Sure it might go down - especially at the open. Then don't be surprised if it slowly continues to rise. So lets say they earn $1.05. wow Pe of 9 now.
REIT requirement: "The rents also must not be “related party rents.” Related party rents are rents received from a tenant if an actual or constructive owner of 10% or more of a REIT’s capital stock actually or constructively owns 10% or more of the interests in the tenant (see IRC § 856(d)(2)(B))."