Luby's should get some sympathy buying today in connection with SHAK's huge valuation. SHAK is priced at $500 million even though it has just 64 stores, while Fuddruckers has three times that many locations, but a market cap of less than $90 million . Yes, believe it or not, SHAK's locations have a valuation of $8 million each, while Fudd's are valued at just $450,000 (almost 18 times higher).
LUB has caught a nice tailwind. It looks like $5.00 today is more than likely, especially with the help of some nervous short sellers.
CEO Pappas just reported purchasing just under 20K shares in the open market. That could be construed as a very good sign and give the stock a real confidence boost.
RRGB might look to acquire Fuddruckers. This 180 unit chain could be stolen as cheap as $65 million. RRGB might also enjoy its franchise revenue stream
Fuddruckers is a takeover candidate and its 180 locations could be gobbled up for just $60 million. Will HABT be the suitor?
This puppy could easily attract a buyout premium of 25%. That would catapult the shares near the $6.00 mark and put a smile on the face of shareholder's.
The company anticipates to open 8 more locations within the next 12 months. A combo location in two weeks (Jackson Mississippi). A Koo KOO Roo conversion to a Fuddruckers in March ( Santa Monica, Ca.), and five Cheeseburger in Paradise conversions to Fuddruckers. These additional stores should add a nice revenue stream.
Four managers at one time, can be expensive-no wonder Luby's is struggling to make a profit. The good news is there are plenty of areas to make vast improvements ( this is an example of one of them). thus moving the needle in the right direction.
If this sucker gets to $5.00 or so, I will be backing up the truck. The maximum downside at that level, is a mere 50 cents, but the upside is four times that amount. The risk vs reward is indeed compelling to the long
sorry, I guess it wasn't very encouraging after all. I assumed it was (early in the am) because the shares showed some strength. I guess the market is now telling us otherwise.
The 2015 Annual Shareholder's Meeting just adjourned. Very Encouraging stuff.