Congratulations to the incumbent directors and all who voted for them! I am now out of this stock. Given the circumstances, I almost can't imagine a price at which I would get back in. What were you thinking? Do you expect Mill Road to make yet another offer for the whole company when the crony board has shown they are unwilling to negotiate? As if the board wasn't unreasonable enough already, you have now provided them with an excuse to ignore any offer that Mill Road might otherwise think about submitting. Had Mill Road won seats on the board, they could have tendered for the stock. Now, if they submit an offer, the board can say "the shareholders clearly demonstrated via the proxy that they prefer our long run plan to any short-term premium that Mill Road might offer." Instant legal defense. Awesome.
Not that I would expect Mill Road to fall for the old Charlie Brown running up to the football only to have Lucy pull it away trick again anyway.
I guess you are all in this for the very long haul. Problem with that plan is they only have 20 restaurants. This stock can't climb very far without expansion, and the company can't expand until (a) it demonstrates it has a valid business by showing at least a few quarters of same-store growth, and (b) it goes out and raises more capital at what is certain to be a dilutive price. Sounds like a great plan. Somebody should sue Glass Lewis. I can't imagine what they or anyone who voted for the incumbents were thinking.
The new CEO is instituting many changes that seem very likely to improve growth. As the economy continues to improve, that's a good place to be. The CEO worked his way up in the industry to a CEO position at 35 years old. He's just 40 years old now. Let's see if he can turn a bit of magic -- any company's CEO makes all the difference.
Well said and if my cost basis was like yours i'd probably be on your side looking for a buyout and a quick buck. However, my cost is higher so i don't want anyone taking this company for sub-$10 range. i have bought in the $1 rights offering and plan to buy more but right now not interested in a buyout and hopes it doesn't happen. Looking for a turnaround on this great biz model
I honestly sympathize with you if you have been in this stock for more than a year or two. In fact, I hope for my fellow former KONA holders that I am wrong and that Mill Road or someone else does make a tender offer. Of course, if that does happen I will feel a little stupid for selling too early. But I'll be able to live with it because based on the sequence of events, I don't like the odds right now, and I think I made the right decision at this time.
If I were Mill Road, I'd probably sell enough over the next few days or weeks to send a clear message to the shareholders and the board that the vote was a mistake. It wouldn't take much on their part to send this message.
I'm not the type to write in to message boards and hide behind anonymity to be aggressive and cynical. I am just genuinely angry with the shareholders for this vote. I don't consider that to be greed -- I just think voting for Mill Road was the right thing to do for all the shareholders. I dumped all of my stock today. I am mad at myself for not selling yesterday since I knew that proxy fights rarely succeed.
I am actually 40 years old. I don't know why my Yahoo profile doesn't seem to age with me. Does anyone else have this problem? I guess I could update it if I wanted to bother.
I admit I got in this stock anticipating a relatively short holding period, but was willing to stay in until it made sense to sell, however long that might be. I don't day trade. I probably make 1 or 2 trades a month on average and hold 3 to 8 individual stocks at a time. The rest is in index funds or other asset classes.
I first got interested in KONA in about September 2008 when I put together a pretty large set of restaurant comps and I saw that KONA was trading at about 0.3x 2009 revenue and 3.4x 2010 EBITDA. This was about a 50% discount to the multiples of larger chains, and maybe a 30% discount to other microcap restaurant companies. I did more research and came across the history of the Mill Road offers. It didn't make sense to me that the company had rejected the offers with so little explanation, but I took it as a sign that there was something good happening behind the scenes. I built up a decent position since and never sold anything until today.
Anyway, that's my story.
not sure we're all looking for a buyout and a quick buck. I for one want a higher price whether via a buyout or stronger results. It does me know good to see the stock down 16% today in hopes that we'll see $10 next year. MRC getting a few board members doesn't assure a buyout, but they clearly seem more aligned with increasing shareholder value.
Regardless, I don't see how anybody could vote for Jundt cronies. Nobody said you had to vote for MRC either. It wasn't either or.
I am right with you Saber, in more ways than 1. Yeah, it struck me, 32 years old from NY. All he wanted was fast cash. Wah!!!! Go cry little Baby!!! I didn't get my way!!! WAH!!!! I don't trust Mills Road at all. Just like our 32 year old cry baby, they want a fast easy buck and don't give a damn about the share holders. I will grant that Jundt was a crook, no doubt. And yes, I am not happy that some of his buds are still on the board. But I would much rather deal with a known enemy than an enemy that has aleady proved, they only care about themselves. So far, I like what I see with the new CEO and the new Web expert. I'm long like you. And if these Morons continue to drive the stock down, I pick some more up on the cheap!