it is way too risky to be short going into the earnings event. The exposure on the short side is dangerous, because any hint of good news will send the shares into orbit, while the downside risk is limited since the shares have already crumbled in anticipation of a weak quarter. In other words, the stock has already been sold on the rumor, and will be bought on the news. The stock could jump $2 on positive news, but only fall about 50 cents on disappointing news. I like that risk reward ratio.
If they can't earn money now in a very vibrant Texas economy and without paying rent at their locations, how will they ever be able to turn a profit?
Sidoti & Company's James Fronda is the lone analyst who provides research coverage on Luby's. He presently has a neutral rating set in place. A good report next Thursday, could certainly be the catalyst for a long awaited upgrade. Especially after the shares have dropped 50% in the last three months.
instead of focusing on expansion, these guys should be conserving cash and paying off debt. They should also be concerned with cutting costs and making operations simpler, cleaner and more effective. Streamlining the organization is the order of the day.
We are just a nickel a way from repeating a 52 week low. I wonder if we are getting close to a capitulation. We need all the weak hands to dump their shares into strong hands. That would represent a bullish event going into next week's earnings release. Obviously the market has already built in a big miss to the current share price.
They are printing up more shares to give away to insiders. Hopefully, they are restricted shares that prevent them from being sold too soon.
I don't think they have a PR department. Iam guessing that is a function that they contract out. Not sure if they are too concerned about sinking deeper into quicksand, based on their actions. They seem a bit too detached to their recent plight.
I hope they take the high road and enable the Board of Directors to focus on their fiduciary obligation to act in the shareholder's best interests.
Haha..you are right. I am way too emotional about this stock and it is preventing me from seeing the forest through the trees. Will they even bother to report a new contract?
I always have a hard time resisting buying the dip. Each time it drops, I figure the stock is that much more of a bargain. One of these days, I reckon, I will be finally proven right. Until that day, patience will have to be the key.
Could it be the intent of management to try and take the company private? If this is to happen, a lower price would benefit them. If the shares fell to $6, then they could offer $7 and then take it public at $12 down the line.
is there a chance that management wants the stock to go way down, so they can take the company private at a very cheap price? If the shares went to $4, they could then launch a tender offer to buy all the shares at a 25% premium, and then take it public again at a much higher price down the road.
this time around, they can't blame their mediocre results on the economy. Texas is on a real roll. One of the strongest economic areas in the whole country. When will the insanity finally end?
LUB is expected to earn 3 cents on sales of $96 million. They will miss on earnings, but beat on sales. Look for LUB to lose 4 cents on sales of $98 million. The eps miss will be attributable to higher food costs and severe winter conditions.The company will maintain its current guidance. The market will look at the results as a non event, since the stock has already fallen in anticipation of another weak quarter.
Maybe the Pappas's are broke.That's why they are not buying anymore shares. The company has become a serious dog with fleas. Not sure it will ever be able to shake that stigma. One ray of hope? the old adage: "Every dog has its day".
nobody invited FSYS to the party.....I guess it just stinks too much. I guess every dog has his day.