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Granite City Food & Brewery Ltd. Message Board

  • ivorytowerboy ivorytowerboy Apr 29, 2012 3:14 PM Flag

    How will GCFB increase shareholder equity?

    GCFB has been threatened with delisting because they are a tad below the minimum shareholder equity. I am betting that the fat cats that own the majority of the shares are not going to let it be delisted, and they will find a way to increase the share price. Meanwhile, the economies of rustbelt states in which they have their restaurants are recovering quickly. The chain is expanding (two restaurants will be opened shortly).
    One can read the internet reviews of this chain. For the most part, they are quite positive. In the next three years, I foresee this being a tenbagger. In the short term, I wouldn't be surprised to the see the share price double by mid-June.

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    • They won't. A quote from the recent earnings report:

      "General and administrative expenses were $2.5 million or 8.9% of revenue for the first quarter of 2012 compared to $1.8 million or 7.8% of revenue for the first quarter of 2011. With the addition of several key members of management in connection with our May 2011 transaction with CDP, we expect general and administrative expenses to run at this higher rate in future months."

      Although the company is publicly traded, it is managed like it's private. There are too many executives and managers. They think they can outsell their ever increasing payroll, which is completely backwards. They should be focused on cutting spending in order to make a profit. Once they are profitable, then they can hire more people as needed. It baffles me how a group of MBAs can be so incompetent.

    • Absolutely Agree. They are expanding, biz is just like BJ's ..this has potential to be a 10 bagger in 2-3 years.

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