this is where the pumpers get separated from the investors. It'll be easy to see on the replies to this post.
11 stores at 1 time. Most in TX, again!!! None in the Dakotas where easy money is waiting to be spent. And 1 in Phoenix. (I'll check that property out in person and report back.)
Not happy with the financing rate. Are you telling me that in this ecconomy that 9% is a bargain? Me thinks not!!! Me thinks management stayed with a "friendly bank", get it?
Now to separate the pumpers.
The mandate placed on a public company is to return at least f'n something to the share holder. So where's the piece of the pie for the share holder here. One can see a debt burdeon bring the price down! Thanks RICK!! So tell me fellow board members. We just increased the total number of properties by 42%. So where's the ROI for fronting RICK the money to get going. All this has done is increase the wealth for the owners (NOT share owners).
To my point, RICK board just OK'd an increae to the total float of roughly 900K shares if needed. I was thinking that any increased interest in RICK would have to buy off the current float, AKA price increase (supply and demand). But with the extra shares looming large, the current shareholder will get dinged AGAIN. What a great investment, eh?
>>>>> None in the Dakotas where easy money is waiting to be spent.
I already showed you the demographics on the dakotas.....if you're going to keep basing your opinion on some news headline and ignore the census data, then I'll not try to convince you any more....
regarding 9% commerical financing for a strip club.....go talk with a commercial lender in your area....they're easy to find and will be happy to take time to talk with you, especially if you tell them you're shopping for commercial financing rates
go ahead and continue to spew your hate and ignorance....and ignore the solid data that is easily available
"All this has done is increase the wealth for the owners (NOT share owners)."
That's what I keep saying! Eric's head just got ALOT bigger, along with his salary, and shareholders are faced with the burden of massive debt and a weak bottom line.
What we have here is a CEO with "little man syndrome" and ZERO patience. He should be REDUCING clubs and building BETTER ones. Instead, he probably just made a buddy alot of money by over paying. Whoever financed this is laughing all the way to the bank.
When Eric is flying around in HIS private jet (at shareholders expense), he will be looking down at the little shareholders who took one in the crotch so that he could pretend to be larger than life. BTW, how much did that jet cost again? I'm sure it could have funded a club that would have returned cash to the company. Instead, it's a huge money pit.
Next there will be dilution, a pps decline followed by a Reverse-Split, and then Eric will rub out the shareholders. Any bets?
I was once very bullish on RICK and held a good amount of shares. My proximity to Tootsie's made me a believer in the business model as that club basically prints it's own money. I always thought that RICK's management should add more clubs in south Florida where these types of establishments are gold mines. Instead they continue to focus on Texas with their "clustering" mentality. This latest aquisition seems odd to me. Why take on all of these clubs instead of focusing on one "mega club" and continue to pay down debt?
This management team reminds me of another stock I held for a long time which is IMAX. Great product, but the suits only care about themselves. The shareholder is an after-thought. I think in the case of RICK Eric likes the idea of being publically traded as it adds a level of credibility to the business when in reality being private may be the better option.
Let's see how earnings are interpreted today. Seemed bad on paper to me but what do I know?
The interest rate of 9.5% is manangeable. Remember, they only put 12.5% down on the deal. However, if the ebitda covers the payments for the clubs, why issue more stock here ? The stock is cheap already.
The switching to nightclubs and Hooters type clubs was the real kicker. I like the franchising idea. However, I'd like to see these type restaurants with Ricks next door.
Earnings missed the 28 cents estimates. I think we get a sell off here, if you look beyond the 11 clubs, earnings were horrible. Een with the higher legal expenses and lawsuit settlement, we still missed by 5 cents.