it sounds like we might have to wait until 2016 before this company's fortunes actually begin to improve. Frankly, that is just way too long to wait. Who has the patience for that anyways? Is it time to sell this dog?
the main problem with this stock is, it is dead money. The reality is, it is to the benefit of management to have a low stock price, that way they can eventually take company private for a song. If the shares fall to $3.50, they can bid a 50% premium, buy all the shares they don't already own at $5.25, and then a year or so later, take it public for a price twice that amount.
get a fresh management team in there- the existing team has languished. The turnaround is not suppose to pick up momentum till the end of 2015/beginning of 2016---who the hell can wait that long!
The company is not scheduled for an earnings release until this November, so news will likely be limited at best. Possible catalysts could be: (1) The Pappas's buying shares in the open market (they are way past due) (2) the intention to sell one of the brands (3) more franchisee openings or additional culinary contracts won.
I am surprised that the stock came roaring back from its lows. I guess it was due to the tone of the CC. It was fairly optimistic for once, eluding to the prospects of a nicely improved 2015. About time. They also mentioned that operations in Venezuela will start up next month.
revenue guidance was reduced another $5 million while EBITDA guidance for the year was trimmed another $12 million. These guys are certainly not doing us any favors. Hopefully the news of the activist investor getting on board, will offset the negativity of the second quarter results. I wouldn't be surprised if the stock actually closed in the green. we shall see.
Becker Drapkin Management thinks it's a big chunk of cheddar. They just filed a 13d with the SEC disclosing they have acquired a 6.4% stake in the company.
the shares are holding up quite well despite a massive meltdown of the overall averages.Luby's high relative strength today, could be attributable to the fact that Sunrise Partners announced via a 13F filing they have taken a substantial position in the company.
For what it is worth, activist Investor Becker Drapkin Management LP has taken more than a 400,000 share position in the company. You never know, they might try and stir up the pot-it couldn't hurt!
RRGB got hammered today. Not sure why LUB didn't also fall in a sympathy move. I suppose the news of another 2 restaurants opening today, helped offset RRGB's poor results. If this sucker hits $6 again and it probably will, real soon) it might be time to unload.
Monday could be brutal. Another test of $9.25 could easily occur on bad results and reduced guidance. With FSYS's dismal track record, you almost have to expect it. The one saving grace? Horrible expectations are likely priced in, so even a bad report might not sink the stock much further. One thing for sure, these guys care little about the stock price.
this one will roar back. Way oversold and shorts will begin buying to book profits. Will RRGB go after the Fuddrucker's chain to bolster their top line? They just might
Today's meager volume of just 18,000 shares is one of the lowest trading days in a very long time. The stock is beginning to get very boring again. We need a catalyst to move the shares , so we all don't fall asleep. We need the Pappas brothers to make a big share purchase, as they are way past due for one.
English is their second language (the CEO and the CFO), so of course they are going to be unclear and difficult to understand on the CC. It will likely be another disaster. Why should it be any different this time?
Wait to cash in? they might be waiting a mighty long time to do that. Management has been showing little urgency, in regards to shoring up the stock price.
the question is why is it so low? Do the speculators simply feel that the downside is too limited to risk going short?