Here is my scenario.
After Monday trades on a 20 dma of 7. Pompano back on line, ensco working. Public offering of 30 mil shares @ 7. Raise 200 mil. Make the interest pymts. Return the 385. Mil. On the revolver.sell 250 mil in assets. Received the 25 mil tax credit. Consolidate the board to 5 members. Continue cost efficiency measures. Fire LAZARD. Hire, Jefferies or Goldman. Dismiss the CEO. Announce you are hiring me. Uncle Danny from Miami. And SGY is back to chopping wood an carrying water.
Wich likely will grow. Should get notoriety in the next 60 days. Cup and handle chart formation in play. Very low short interest. Institute a new idea. %10 surcharge on all gross total transactions. Just call it "highway robbery". People get use to change.
Nobody of true investment power will even read this report until October or,later. I like what I read. It's honest and not out of line with anybodies Q1 retail. Yes it is a slave to HPT, 13 mil a day in revs is nothing to sneeze at. And will mostly improve going forward. Cup and handle formation in play 8,9,10 is obvious
They must need to raise prices if they lost 9 mil. And they must be exposed to rising minimum wage costs. 9 mil loss is less than 1 days revenues. Not to scary, just a dulling retail environment, as people spend more on health care and there pets. How about installing single treat vending machines for dogs? Or, taking advantage of the food truck phenomena and share locations with a popular food truck. Capitalizing on the food truck phenomena by renting a space in the parking lot after 6 PM.
To double mkt cap they will need a PPS of 10. With under 6 mil shares outstanding this should happen within the next 2wks. Given the number of board members for such a small company.I would expect this to be the outcome.