How do you know funds bought the secondary offering? It could also be mostly retail investors. Frankly, I think funds are too smart to buy CHUY at these valuations. There's a reason all the insiders are happily bailing out of the stock. Today's action is worth paying attention to.
correct - the valuation is off the charts insane. Whoever bought the Goode shares is a complete moron. The shady underwriters took the stock up to $34 pre-deal. They screwed everyone. I'm sure Goode partners was behind the hype. They are as shady as they come in private equity world.
How many stores do you think the Chuy's base can grow to. They only have 41 stores. There product is not a gimmick. I have surveyed at least 20 people who have ate at Chuy's (at random) and everyone of them speaks highly of Chuy's. They all say the food is good and prices are reasonable. What am I missing? Have you modeled out 500 stores in your valuation.