We sent this out at 10:12 this morning: We're not really fundamental traders, so it was the technicals that made us look at this, HOWEVER...... from the company website: <i>HOUSTON - (May 8, 2008) - Rick's Cabaret International, Inc. [NASDAQ-GM:RICK] ,premier operator of upscale gentlemen's clubs, said today it more than doubled nightclub sales in April from 2007 and had an 11.5 percent gain in same location sales over the previous year. Total sales at the company's 18 adult nightclubs for April were $5.1 million, a 105 percent increase over the $2.48 million recorded in April 2007. Same store sales were $2.68 million compared with $2.40 million last year, an 11.5 percent increase.</i> Those are some pretty solid numbers. I think this business does well in a shit economy.......
You may have something there technically. Fundamentally aren't the big spenders in strip clubs on company expense accounts? That stuff usually gets cut back during a recession. But looks like the stock could make your target w/o fundamentals.
VCGH This is a company that is being run by a man who knows how to succeed.. he is buying up cash flow positive clubs all over teh country... I love this stock here..... i think the numbers look much better here than ricks.. i give it a double aa rating with double dd's holding up the buttom line!!! lol Ricks stock is way over done.. look at the volatility over the past six months.. time to exit ricks..hell i would do the stripper spread.. sell rick's and buy VCGH.. now thats a trade http://finance.yahoo.com/q?s=vcgh
the problem with a strip club, and this is mostly an ego thing-you're not an equity holder in the real money, which goes unreported. Meaning, drugs and prostitution. Stake yourself in a coke biz and get real money.
I agree. Its the same store #'s that are amazing to me. Anyone can grow the top-line by just opening more clubs. These are huge increases in volume at the same locations. That's why i named the thread what I did. More on RICK in our main thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=125554&perpage=6&pagenumber=8
Shadow what is it that you do not like about VCGH? REcent acquisitions hurt the overall eps... but once things get rolling in a few months eps will look very good. PE is still better than ricks
Jay: Im not much of a fundamental guy but regardless the first thing that is apparent here is that VCGH if $4.64 per share. Cheap stocks are cheap for a reason. I would not be too concerned with P/E. I am more concerned with the cheap price and also where it was. This stock was $13 earlier in the year. Its been cut drastically. The stock is just basing at a ridiculously low level here. If it crosses $5.05, which was a prior swing high down here on the weekly chart, then MAYBE its worth a shot, but personally I think its junk at these levels.