options are not a free method for obtaining shares- you still have to pay the exercise price when you eventually acquire those shares.
If these guys can't make money now, they will never be able to. The report was more than a disappointment and the market clearly let them know. I guess it is fair to say, garbage in, garbage out. I can't think of any catalysts that will reverse this horrible trend.
don't try and catch a falling knife-these guys ( inept) could not make money if their life depended on it. why not wait until $2?
wow...they beat on revenue by $1 million during their slowest seasonal quarter of the year. That is impressive. Both major brands experienced same store sales growth. The dog of the group was their Cheeseburger in Paradise brand which saw negative same store sales growth. Culinary picked up two more locations, and the franchise division pumped out a nice 6.7% increase in revenues. In all, it was a pretty solid report.
Luby's costs will rise due to higher beef prices, but they will likely be able to cancel this out, thanks to increased menu pricing. Earnings after the bell won't be pretty, but the shares have already been priced down for a huge miss, and then some. In the end, it will be a non event and the shares will likely maintain their present levels. The results will simply not be as bad as expected, and the stock could even experience a relief rally of some kind, or as some might term it, "a dead cat bounce".
The latest Seeking Alpha article relays a very bearish theme, when it comes to Luby's. Is the author badmouthing it so he can buy it cheaper or what?
1st quarter results will be released in less than 48 hours. Shorts better cover or get obliterated in the impending buying stampede. The shares are so thinly traded, that any hint of good news will render the sellers side totally inactive.
that statement makes absolutely no sense. If the same people run both entities and the private entity is well run, isn't logical that the public arm. would also be well run?
Luby's bought Fudd's for $62 million nearly five years ago, out of bankruptcy proceedings. Today they could likely fetch twice that amount or more. They should make hay while the sun is shining and book their profits. You know what they say, buy low and sell high. It is time for Luby's to sell high.
Expectations are so dismal, that they should be easy to beat. Management is smart. They definitely know how to play the Wall Street game. It is called under promising, in order to over deliver.
holy moly, the shorts are really feeling the pain this am. We could be at $5 today, very easily. Why on earth would anybody be crazy enough to short a takeover candidate in the first place?