yep, true enough. I'd like to have an IRA large enough to allocate $150k to a single investment
If you think it can go to $50 then it is unwise to sell, even if you think it can drop back down. You'll be paying close to 45% of your gain back in ordinary income taxes so unless you think it drops that much you would be better off holding for your long term rise and get long term capital gains tax treatment.
I think everyone knows there will be competitors in the space as the barriers to entry are not too high. I think you keep trying to convince yourself you have made a good bet by publicly highlighting every piece of news on the margin that supports your claim. But I think you are ignoring the reasons to like RAVE, to your detriment.
They don't go up in a straight line in perpetuity. And today is up. So what is new- stocks go up and down?
If they are spun out, they are given to existing shareholders- no one needs to buy them. If the value of P5 continues to grow and PI weighs on the equity value and mgmt wants to give a clearer picture of P5 then a spinout would be likely.
Say a year from now when/if P5 had 100 stores (franchised and company-owned) doing 10+% in same store sales, what value would that business have if it was to IPO? Or what value to the P5 stub if PI spun out? I'd think more than in the 10s of millions of dollars as implied now.
I hardly think that it is just your dissatisfaction that the company calls itself the leader in fast casual pizza. Are you a crusader? Are you here to save us?
How many Chipotle stores are franchised now? Less than a dozen. So is Chipotle going to change the game and franchise pizza but not burritos? If one wants to franchise the concept, one doesn't go to Pizzeria Locale. And you think the existing franchisees thought they were going to have the space all to themselves- when anyone can find the competitors in the space already, as you have enumerated on many occasions.
I think many of your concerns regarding competition and actual store openings are valid- those are issues to watch. But when the company has such a small market cap and a rapidly growing P5 concept, the reward relative to the risk is high.
Daily commentary trying to deflate the stock price may work when the only holders are mom and pops on a pink sheet stock but it doesn't work when the company is beginning to get institutional holders and national publicity.
I agree it is about sales but if they report margins are down because of cheese (or other) costs and P5 margins are weak despite strong sales then some of the air is going to be taken out. Regardless, it still looks like a cheap stock.
Your sales estimate may be spot on and they gave those preliminary same store sales figures, which were impressive. I'd don't think the sales numbers are so significant now as whether they are ramping costs even faster and eps come in below estimates.
Now, fast rollout of new Pie 5 with continued strong SSS and everyone but shorts will be happy but they still need to make money.
Regardless, stock appears deeply discounted to nearly every other public restaurant comp.
Good numbers for company-owned stores. I don't like that they didn't give SSS for franchised stores which makes me believe that those numbers are not so good. For Pizza Inn the number sounds quite strong yet we don't know whether the results were driven mostly by increases in prices. They also didn't give any preliminary indication of whether earnings would be higher than they thought- so I suspect costs were also higher than they thought.
Regardless, they seem to be on the front end of this current trend and let's hope they can stay there.