They have very small investments (as a percentage of their funds available) in RICK. It's a longshot for them, or they would have more at stake and speak up imo.
I wouldn't say they are in favor of what's going with RICK management. The CEO, his right hand man Travis, and the founder of RICK all received very low votes for BOD. 2 of these 3 really need to be removed from the BOD as soon as possible. Just need other names on the ballot and they will be gone once and for all.
How much has that delay cost the state of Mass and Wynn shareholders? Hundreds of millions in revenue I bet.
Try about $75M of earnings (.75 EPS). Maybe higher being the grand opening. Of course it all really comes down to the table count. They need well north of 450 tables or the Chinese pretty much stabbed them in the back. Basically used Wynn shareholders to fill a swamp and build a beautiful space on borrowed land. No wonder Steve burried the company in debt to pay himself so much in dividends over the last 6 years. Poor management imo. CFO and BOD should have never allowed it. Maybe he should be on Cramer's "CEO Wall of Shame".
Then there's $50M of interest on the $4B debt for the project and no new revenue to pay it.
He must then go to a newsletter company to find new stooges.
The Micro Main Event announcement today states just 43 clubs. That's 2 less than reported just over a month ago.
Texas must be in shambles like "Wonder"Dog said.
Langan and his right hand man Travis are living out their flying passions on shareholders dime in the company's expensive and UN-NECESSARY aircraft imo. NOBODY should be earning their multi-engine and jet licenses in a company's aircraft. That's NUTS! One of these newbs crashes and kills somebody and the company is sued again. BIG-TIME.
This aircraft certainly isn't keeping clubs open. They have closed 5 in 2015 while building ZERO Bombshells! No more club in Los Angeles so it's had to justify a jet with TOO many clubs all in Texas.
There's no reason for Langan to be paid $1M/yr. The guy has failed more than he has succeeded at opening new concepts and clubs from what I have witnessed.I could do a far better job for $75k and no stock options. I would tell the TRUTH on CC's! And I would treat shareholders as the OWNERS of the company for a change.
He IS growing HIS control through higher ownership stake % by using company cash to reduce share count. PERIOD!
The company should be using the cash to pay down debt or to CREATE new clubs. A good CEO would have created more than 1 high margin club in nearly 20 yrs. That 1 club being Vivid NY. That is if shareholders aren't being lied to about it's success like they were about Vivid LA.
I bet Buffett is short through options!
That way he lowers his cost of ownership. Why aren't YOU keeping up?
If Buffett warns about management who throws around EBITDA numbers, and Einhorn warns about CEO's who use "non-traditional metrics" (Hint: NON-GAAP figures), then WHY is Langan still doing it EVERY earnings call?
RICK needs a CEO that sticks to what REALLY matters and doesn't wait for the same 'ol callers to lob him softballs evey CC. Tell it the way it is when you are facing the 3rd straight Q with no earnings growth on a GAAP basis excluding items. DON'T blame weather and sporting events. Point the finger at YOURSELF and tell them how buybacks just burns capital and how opening doomed clubs is wasteful and poor management in most cases.
CEO said the stock is undervalued at $15.
He would have to close alot more clubs and take on more overpriced debt to damage the company futher to get away with a lower offer. Burning cash through unnecessary buybacks is one way of lowering the value of the company in the event of a buyout.
Not a peep except for the lone $26/sh clown and the insider with 20+ aliases that ONLY posts to attack those who call out managemt.
YOU are an ignoranant dolt and don't really deserve a response. But I'll give this board a response because the naive need to educated.
The LOWER the price, the MORE shares the company can buy back with their buy backs. This helps management prop EPS these times of low, or NO earnings growth. But the bigger reason management (hint: CEO) wants the prices lower is the fact that the less shares outstanding (again, lower price buys back MORE shares and produces LESS shareholders), the more control the CEO buys himself WITH COMPANY CASH. He KNOWS this and you clearly don't!
And the worst part, the cash burned on these buybacks lowers the value of the company which makes it less expensive for the CEO and his buds when they decide to rub shareholders out.
Think I'm making this up? I CLEARLY said they would take the stock down after the last CC so the price would be low when they finally pay the lawsuit and can put cash towards the buybacks. Look what's happening. There really is no other explaination. It is what it is. MANIPULATION! Shareholders are giving up and taking losses because of the falling share price while the market gained 10% in a couple weeks time and are pushing all-time highs again.
If you are not the CEO making $1 MILLION/yr, or part of his posse, then you are an endangered shareholder imo. I can see right through this guy! He's NEVER proven me wrong in the 10 yrs or so I've followed the stock. I watched the $26 to $2 game being out. I saw who benefitted from it. Hint: the CEO bought alot personally below $4, but doesn't buy much over $10 while claiming the stock is worth $15 for share buybacks currently.
Borrowing $350M for share buybacks and dividends makes the company worth $350M (plus interest) LESS!
They're trying to prop a shrinking EPS figure and that's DUMB!
Sentiment: Strong Sell
"The Company may also incur additional short-term debt of up to $350 million, which would be repaid with proceeds from the long-term debt. Proceeds from any debt incurred would be used for general corporate purposes, including the repurchase of stock."
Sentiment: Strong Sell
Desperate to prop up a shrinking EPS number imo.
Share buybacks DO NOT add value to a company. Taking on debt to prop up EPS will LOWER value of the company by borrowed amount PLUS interest!
Sentiment: Strong Sell
Can you say, "Insider Manipulation"?
How did these clowns con people into buying at $25/sh with 17 clubs and half the revenue? Oh yeah, the Vegas mirage.
How can the industry "leader" be so bad at deals like Vegas and Vivid LA? A true leader would have squashed the competition or at least known what they were getting their shareholders into.
Especially on the news of the 13% loan from an "un-named individual" at a time when the company had plenty of cash on hand and were throwing more cash away on assinine share buybacks.
Your knee pads are wearing thin buddy. Keep up the good work.
by kowboykosher • Nov 19, 2014 7:35 AM.
"I am buying an 18 wheeler load at $10.10. Mark this post and get the tequila ready for the party that we are having when we make a quick buck here. THen you can go back to whacking you hung like a hamster tool"
Falling in love with a stock and it's CEO is a dangerous thing!