I think Luby's is in the process of sprucing up their three brands so they can put them up for sale. They are just doing the finishing touches to attract private Equity interest.
The company should be put up for sale as soon as possible, before its operations degrade further. Getting something now, is far better than getting nothing later. There is no doubt that the company can be fixed by a better operator, but time is of the essence. Why wait any longer. In the last six months alone, shareholder's have seen their investment just about cut in half. Waiting another six months, could cause the shares to fall another 50% .
shares are in the red today, despite the nasdaq putting up a very impressive rally. I guess maybe the horrible pending results are starting to leak out, and there are many skittish investors simply bailing out, that just don't want the risk exposure. The company is certainly not doing its shareholder's justice. Why don't they just get it over with and half the stock?
The selling has been relentless. When will the carnage ever stop? With the stock dropping at such a horrific rate, you'd think that the company is about to file chapter 11 and the shares completely zero out.
Hopefully management sandbagged their guidance this time around. The practice of under promising and over delivering is very effective.
LUB is valued at $851k per location based on market cap divided by locations. That is not giving any value to either its culinary division or its franchise operations. The stock is becoming quite a bargain. One of these days, the street might recognize that fact.
It might be time to go short. At the present time, these guys couldn't hit the side of a barn with a baseball, just a few feet away. One of these days. they might get it right, but until then it might be worth going with the trend and profiting form a short position. After all, you might not ever have to cover your short, if they ultimately file chapter 11. I know this view seems overly pessimistic, but I feel like I have reached the end of my rope and going short seems like a viable way to recoup some of my investment.
The last two sessions we have had very heavy volume ( twice average daily volume) and you know what they say, volume precedes price. We might finally see a decent relief rally hit the shares. The stock is way oversold and due for at least a dead cat bounce. it is time to start buying
the company owns 181 stores currently....if you use enterprise value per location, the unit price jumps to about $1 m each
This Thursday before market open, FSYS will report its 1st Q. Will it be good, bad or indifferent? Who knows, but maybe we will at least get some fireworks when it comes to the share price. Lately, watching the stock has been pretty boring. We might just have a watershed moment.
At this point, I am not sure if the bleeding will stop until the patient has expired. This stock has gotten downright vile, toxic and scary. The selling has been intense and relentless., but who has been buying? I doubt very much that management will come to the rescue, as the share price seems to be the very last thing on their mind. The question that comes to mind, is why don't they care? You'd think that owning 30% of the company would make them care!
One thing for sure. Somebody is certainly scaling down their position relentlessly. They appear to want out real bad. The question is, who has been buying all these shares? Once the seller has no more shares to put on the market, we will likely get a relief rally. In the meantime, don't expect management to do us any favors. Their regard for the share price is minimal at best. As a shareholder I am getting very familiar with the word "suffering".
Hopefully WPRT's huge quarter will rub off on FSYS, and give its shares a little lift. Lord knows, we need it! Being an FSYS shareholder lately has been a very painful process. The suffering certainly needs to end. One thing for sure, horrible expectations this Thursday is a good thing, because it means the bar is set low enough to easily clear.
risky proposition to wait, because you won't be able to get in on a beat, at a decent price, as the shares could soar as much as 25% in a few seconds. That how fast these markets move.( especially a very thinly traded, low folat value equity).