Luby's needs to think outside the box, so they can find a way to move the needle enough, to please a very fickle Wall Street.
Now that the share price is 10% below the analyst's target price, it is logical that the stock will be upgraded now that upside potential is clearly available.
I wonder if we will see any fireworks at this year's annual shareholder meeting. After all, there are some pretty frustrated shareholders, that could pose some very tough questions to management.
Royce & Associates just filed a 13d with the SEC indicating that they recently crossed above the 5% ownership threshold. The hedge fund reported owning a 5.81% stake.
The last of Luby's Koo Koo Roo locations, has been closed down, but will reopen soon as a Fuddrucker's. The new Fuddruckers will be situated on famous "Wilshire Blvd" in Santa Monica, Ca.
the fall in beef prices should give Luby's a real shot in the arm. Especially its Fuddrucker's division, who buys a inordinate amount of ground beef.
Luby's is scheduled to open its first combo restaurant outside Texas, on Feb 19th. It will be located in Jackson, Mississippi and is the last combo unit set to open in fiscal year 2015
maybe Luby's will spin off their Fuddruckers chain and create a separate public company. Not a bad idea.
the last 10 restaurants they opened, are all company real estate and structure owned. This is why their debt levels rose. It costs a lot of money to build these combo restaurant's. The company is still cash flow positive. Depreciation is a non cash charge. These guys will be just fine.
there is no better time to buy than when maximum pessimism is rampant. it is time to be greedy when others are fearful. The market is treating this stock like a leper, that is heading towards chapter 11 where in reality, the company's operations are beginning to show significant improvement, especially with the losses of its Cheeseburger in Paradise chain coming to a conclusion.
on the contrary .shares are up 2% compared to the DJIA climbing only .38%. LUB is up more than 5 times the averages today
the real estate is good, but are investors putting too much faith in it? obviously, they have a good relationship with wells fargo- do you think they would lend them $60 million if they didn't?
They could sell their Fuddruckers brand for about $115 million by itself, and Luby's could likely fetch $165 million-the debt of $48 million would have to be absorbed by the acquiring company---$280 m-$48M= $232 million to be divided up among 28,470,000 shares..Back of napkin takeover value is about $8.16 per share
options are not a free method for obtaining shares- you still have to pay the exercise price when you eventually acquire those shares.