A year ago, Q2 EPS was dragged down by a one-time charge on labor suit. Not the case this year. Should be a strong quarter.
Like Einhorn, you have to admire investors who articulate their positions so well and back it up with big money and high success rates.
Heisenturd is right, Eric could be happy with his salary cut in half. He could make his riches quicker on stock appreciation here instead of through salary.
However, Eric is getting a lot of things right lately. The company and stock is poised to began a gradual takeoff that could turn upward with the velocity of a fighter jet later this year.
You have to be out of your mind to bet against Eric and RCI at this point. Even a sharp market decline shouldn't harm RICK much this time around. Eric has finally built a strong base I believe. Weak clubs retired and strong clubs and restaurants added.
I vote Eric stays forever and continues with his remarkable story here. He can make those who believe in him ALOT of money.
Market was closed and the stock never went above $9 the previous day, or the following Monday.
How did my brokerage buy so high on a closed market day?
They kept company intact in "Pretty Woman". Ackman won't sell off anything major. They need very little cash to get this cash cow headed in the right direction.
They can easily pay their debt as it comes due.
Ackman could lend them the cash to pay current payment and be paid back by the end of the year. And he knows it!
Good point. RICK is not in the ordinary restaurant business. Most of their revenue still comes from high margin strip clubs. Plus they own a lot of their important properties. The bashers are being silly.
$75B Market Cap
$50B Net Debt
$12B Market cap
$30B Net Debt
Bill Ackman could be on to something here several months down the road.
First full year with the pole tax (past and present) figured in for both earnings and cash flow. Labor suit behind us. Top 2 properties now owned rather than leased. Dividend established. Texas economy much more likely to be in a trough than a top. I see great potential from here. And today certainly isn't bad.
I bet they run the price back up with the final $1M or $1.5M of buyback money. I wouldn't bet against RICK finishing 2016 comfortably above $10.
Explain how they "have to borrow to pay it" please. It's less than 10% of cash flow. Buybacks probably nearing 75% complete or more. CEO said maturing convertible debt will be paid off in full. No reason for it not to be. Then 90%+ of cash flow can go towards growth or other paying down other debt.
He did it! Well done. Will look very good down the road to see bottom line, top line and now potential dividend growth. Good investors don't ignore that.
Steve Wynn sold a Picaso for $160M that he had stuck his elbow through. A repaired old painting worth 2x RICK's current market cap? That painting owns no real estate and has 0 annual revenue last I checked. Management has a lot of work to do here. I think most of it has to do with THEIR image rather than the company's image.
Sad but true!
Keep hearing management pretend to care about shareholders and institutional ownership, but they never put words into action. RICK would pop up on a lot more stock screeners if they paid a dividend.