If he takes it private so be it. If he were to do so he would have to get a partner an it is unlikely an LBO firm would allow Eric the luxuries he currently maintains. Guys like Eric need the freedom to do what they want to do. Just the thought of someone telling him what to do makes him cringe. He also needs his access to the capital markets - hard to do convertibles in a private setting when the markets decline. One thing for sure Markets do crash. He had his chance to buy out the company earlier in his carreer - 2008 for instance - number of shares and price were a lot less. - no intention. He wants to make it as a CEO of a public company IMO. He could have manipulated this stock down in so many ways till now. Still 10M shares outstanding. Historically high as you have pointed out.
He gets richer if he can get the stock price up to $20 and not have to worry about private partners. He has the board at his finger tips - Planes - great salary - nobody to report to. No way he screws this deal up. He has exactly what he wants right now. Would you give this up - no way.
I hear you. I believe that since Merriman was hired the strategy has been more concrete and will continue in that manner. What kind of amuses me is that if BV is your driving focus the company should issue 10M shares at $5. Maybe that would work. who knows.
or maybe they will earn $1.50 a share next year, pay down some debt, buy back more cheap shares, raise the dividend, open a club in NYC and another bombshells with equipment previously purchase and upgrade certain clubs. My statements are not filled with innuendos. Don't buy. Please short. We will know much more in the next few quarters how things will turn out. You want risk buy a bank. At this price not much risk - at least for now.
Sentiment: Strong Buy
Not too negative. I agree that management has to prove themselves going forward in order to build trust in the investment community one quarter at a time!
Lots of idiots exist. It is endless. In fact i am interested to see how the recently converted Hispanic club performs. I see your points although the book value only view can be misinterpreted. I am more concerned regarding cashflow. I guess i see the potential and am encouraged over the past 18 months actions and overall performance. Creating a legitimate public strip club operation obviously is not easy - otherwise this would not be the lone wolf out there. You need a tough cowboy to run it. I am sure eric has been approached by crime bosses more than many times and overall has kept his neck above water. I can only imagine the unique challenges he's had to keep it above board. Believe me he could probably make a ton of money writing a book about this experience.. Some other Patsy CEOs could not handle it - I am sure.
The best thing about the stock above all else is that it is very cheap overall. Buy at your own risk - there are a whole mess of overpriced stocks out there and by the number of shorts Ricks is just not one of them
Who is they? Not sure where that came from. I am sure the dividend will rise over time but the company would be foolish to provide 80 cents as you suggest. Accusing the company is skimming - nice - very objective I see.
The company needs to be more predictable in Sales and especially earnings. They need to build on a decent Q2 performance. I believe predictability is key to attracting more investors. Time will tell. In the meantime the company would be foolish not to buy back their shares at under 3X EBITDA. They can pay off debt at the same time as well. They seem to be more deliberate with their expansion plans since Merriman was brought in. I foresee higher dividends, lower debt and more share acquired. They have overcome some major obstacles over the past 7 years and created some as well I admit but the strategy seems to be more concrete than usual - it helps to have solid cash flows and no major crisis to avert - at least for now. $33M in Sales and 30 cent per share I am guessing in Q3. That would work for me.
Oh and by the way - the yelp thing - BW3 s reviews are not a whole lot better and they have had decades to perfect their product.