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Now take out goodwill from equity and the stock is trading significantly above book value.Also, what if the company can't meet it's interest payments?I see Ruth's filing chapter 11 in 2009.Good luck to those thinking this stock is cheap.It was "cheap" at 8, then 6, then 8 again, then 6, then 4, now 2.
Why wouldn't RUTH be able to make interest payments? They are only about two percent of revenues.
And when you factor the amount of selling to make targets for cash and covenants... it's just a shell left. Lots of advertising but not a lot of sales. Holiday sale swould be nice... But who can hold on for the sleigh ride down the tubes.