Has the stock finally found a bottom? It kind of appears that way. Maybe next month's earnings report will bring good news? Not counting on it, but there is always an outside chance.
It is clearly astounding. CMG attains 17% Same store sales growth and Luby's is stretching just to achieve 1/2% growth. What's wrong with this picture?
Chris is President and CEO, about as traditional as you can get. His brother Harris, although no longer an Officer, is on the Board of Directors, just like Chris.
the shares have been cheap for the past 6 months, yet The Pappas's have not purchased a single share in an open market transaction since then. I don't think they are building their positions, as they already own 37%-.Will they attempt to take it private? It is possible, but not probable. The more realistic situation is they will get the company firing on all cylinders once again, and then shop it with the help of investment bankers.
great way to pick up a nice franchisee network, owned real estate and $400 million of top line, all in one fell swoop.
more culinary contracts would be better by far. Luby's sales staff needs to make it happen, but so far have been underwhelming in that department.
leased Fudd's? Are you referring to non company owned Fudd's that are in the franchisee network?
Once the debt is paid off, the covenants are no longer valid and the restrictions abate-all the more reason for paying the debt off.
What can management do to boost the share price? How about enacting a sale/ lease back strategy at some of the locations and using the proceeds to buy back shares and paying off debt? A few years ago, dissident shareholder Ramius Capital engaged in a proxy fight to do this very same thing, but barely lost out to Management in the end. Perhaps it is time to revisit this subject once again.
the old adage comes to mind..."no risk, no reward"...the higher the risk, the higher the reward. Being too conservative can cause you to miss the big one! That being said, your strategy is still solid.
when something good happens, it will be too late to jump in. The stock could rally a matter of 50% in literally seconds. why buy it after it already went up? You have to own it before the rise to make any real money.