management could want the shares to drop lower, that way they can buy the remaining 65% of the shares they don't own and take it private. If it fell to $4, they could offer a 20% premium and buy the balance of the company at $4.80. They could then integrate their current personal holdings of 100 units with their Luby's acquisition and in the process, gain some very beneficial synergies. In a few years, they could go public again and make a huge $$100 million windfall.
buy in the mid $5's, you can't make any money when it goes back into the $9's. That's where you will want to sell.
maybe his private chain and Luby's share common departments such as payroll, IT and marketing departments, thus eliminating redundancy.
CEO just sold 50,000 shares. It looks like he is reducing too, but why?
The CEO, besides running Luby's, manages his own 100 unit restaurant chain along with his brother. Will they one day join the two together? Why not? Especially for the right price.
If Luby's announced a comprehensive cost cutting program, the shares would skyrocket. These guys need to pay down their debt and get lean and mean. They also need to sell one of their divisions or brands.
true that. HABIT has four times the valuation with half as many locations as LUB. HABIT also does not own any real estate ( Luby's owns the real estate on nearly 100 locations). either LUB is way undervalued or HABIT is way overvalued or a combination of both.
Hoping it falls even further, so I can really load up the truck. After all, the stock market is nothing but a merchandising game. Buy stocks when they are unpopular, and sell them when they become popular. It is pretty basic stuff, but most investors do just the opposite. They buy high and end up selling low because they can't resist chasing the momentum.
the lower the price falls, the better, because it will cause the company to be susceptible to a hostile takeover attempt. At a certain price, Private Equity will want to exploit the situation and a bidding war will ensue.
the MM's just wiped out the option premiums on both puts and calls. Although the report was fine, the fact that the CFO is leaving and guidance was extremely poor is troubling.