Employment and economy is much weaker than statistics indicate. With high unemployment and the economic recovery failing, discretionary spending is about to plunge. Red Lobster and Olive Garden already sucking air. Other bars and restaurants won't be far behind. RICK is an adult bar/restaurant with strippers (meaning labor problems and Pole Taxes in Texas).
Check the chart on the Russell 2000 ... money is just pouring in. This isn't Wall Street buying .. it's the little guys, as little guys usually go for lower priced small cap stocks. Study history ... whenever the little guys jump in, it usually marks the end of the bull run.
Mortgage originator like MNRK.
Means traders are unsure ... no conviction here ... change of direction coming ... DOWN!
Declining mortgage generation means declining net income .... higher rates will crush MNRK's mortgage business.
A bank really has to have simple, super-clean books to have buyout potential. MNRK looks too funky ... too much real estate lending.
Wait ... he did have some subtle humor. He said the defendant CEO's deposition testimony sealed the deal for the dancers' case:
"And, in testimony that eviscerated Rick's NY's argument on this point, Langan, the president of all three defendant corporations, acknowledged that "the most important thing to the [Rick's Cabaret] brand is that [it has] entertainers." Langan 10/7/09 Dep. 76. He added: "[W[ithout the girls, we're just selling overpriced beers at a sports bar with bad TV's." Id. at 182. The Court finds that the presence of dancers at Rick's NY was integral to the success of the Club."
If books had been in order, HBKS could have sold out in 2006-2007 boom window for "mega bucks" ... now it's just a salvage job.
"Bethesda, Md.-based leading hotelier Marriott International Inc. (MAR) recently completed the extensive makeover of its iconic hotel, Norfolk Waterside Marriott in Norfolk, Va. The renovation, worth approximately $4.5 million, started in Dec 2012.
To facilitate a smooth makeover, the hotelier carried out the restoration process in three phases. Firstly, it revitalized all 397 rooms of the hotel followed by the renovation of the Piano Lounge and lobby.
Ideally on the banks of Elizabeth River in Norfolk, the hotel enjoys prime positioning. Located centrally in the historic district, the property boasts an easy access to the Waterside Convention Center, the Children's Museum of Virginia, Naval Station Norfolk and Virginia Zoo.
Norfolk, the second largest city in Virginia, has a flourishing business zone which in turn propels the hospitality sector. The city being one of the prime destinations among both the leisure and business travelers, we believe the overhaul of this property is a strategic decision."
"We cannot help but reflect that the period of 2012-2013 seems similar in many respects to the period of 2005-2006. In 2005-2006, many community banks thought that the appreciation of real estate would be endless. These community banks reacted to that market environment by excessive lending on real estate. Now, to many community banks, there appears to be no end in sight for this period of ultra-low interest rates. These community banks are taking material amounts of interest rate risk, asset quality risk and/or mortgage banking risk for short-term profits."
Remember Bobby Keogh ... whenever anyone quits or leaves, that's when all the mistakes are discovered. So if the CFO is retiring, everything must be squeaky clean at HBKS.
Whenever a company makes a big deal out of something that obviously won't "move the needle," that's usually not a good sign ... or so I heard a professional investment manager say.