Rick's Cabaret buys 2nd Minneapolis strip club

Sam, I just checked RICK on www.msnmoney.com. The site has changed (for the worse!) No longer can one pull up the transactions of insiders.

Also, the PA teachers retirement fund if no longer one of the top holders of RICK stock. Instead they've been replaced by CalPERS...

I was actually in Rick's last Tuesday night, and this must have been well known as the bathroom attendance was talking with another employee in the bathroom, that he was going to see if he could start getting some additional shifts at the other club that Rick's was going to be owning.

Not being from Minneapolis, I wasn't sure what club he was talking about, and he said there was another club that was being purchased by Rick's. IF the bathroom attendant knows about it a week ago, I'd say the club either has a huge problem with insider trading or the news had already been released....

Interesting chimark, I just looked up their official press release from their website and it was dated March 7 (today)

http://www.ricksinvestor.com/287/pressre…

CTQ:

Are you SERIOUS? Pension funds hold this company's paper?

I recently read Rick's annual report (2009) and it was horrific reading. I am a pretty savvy investor and I know my way around a balance sheet. I saw a couple of details about corporate financing that I have NEVER seen before in my lifetime of investing. There were plenty of other cockroaches crawling through the footnotes as well.

I can not believe that a pension fund would invest in this kind of dicey paper. In my opinion, this is a screaming short with a look to covering in 2013 when a HUGE balloon debt payment is due for repayment or rescheduling.

CTQ:

OOPS! I just realized that I made an investment recommendation in the above post. Remember the disclaimer about "fiction" at the bottom of the discussion board.

I am just an old hillbilly who started out in the "tools" of the oil patch.

Art, your homework is admirable!

According to MSNMoney, Eric Langdan, the CEO of RICK's holds about 12% of all shares = he's a one-man short squeeze... During the recent financial meltdown, RICK stock cratered to $2.53 a share. By last March it had rebounded to $15+. Then it melted back down to about $7. The whole time Eric never sold a share. The ability to search for insider sales has now been removed from MSNMoney, meaning Eric's sell orders, when they do come, won't be seen.

While I too am skeptical about the propects of RICK's (their Vegas location is a disaster...) our Fed (well the U.S. version) seems hell-bent on buying up any type of paper to reinflate the economy. Just don't ask to see what they're holding!

And yes, CalPERS is a holder of Rick's stock. And yes, the PA teacher's retirement fund used to be like the 3rd largest shareholder. If Sam remembers that he can vouch for it.

Yes CTQWERTY is correct, the PA teacher retirement fund was in the top 10 for major shareholders. I emailed the PA teacher retirement system but never received a reply. I also email a few local PA newspapers but did not receive a reply.

CT, This might help you:

http://finance.yahoo.com/q/it?s=RICK+Ins…

I am truly shocked that pension funds invest in this kind of lousy paper. Where was their due diligence?

I am a major league risk taker in investing and in business; but there is always the prospect of serious reward with the risk I assume. I see no accompanying reward to compensate for the egregious risk that comes with holding this company's stock.

I would expect a 10-bagger (at the minimum), and probably more, to convince myself to buy this dross. I see absolutely no chance of such a return in my lifetime. Do you?

Now, if you guys want into my new oil patch venture, I might have some of that paper to peddle. :) :) :)!!!

Art: You gonna pay dividends in Lap Dance Units? :))

george:

As I said to CTQ, read the disclaimer at the bottom of the discussion board.

That said; I would be happy to take a few $mil from you as well. :))

Hmmm. Back when I was a kid, the gas stations used to give change in fractions of a penny in the form of stamps they called "mils". Is that what you're talking about? :)

Art, I'm on board with RICK shares being a poor investment. And I should've shorted it after being in their Vegas locale a year ago New Year's. It couldn't hold a candle to Spearmint Rhino, fyi.


Who's up for some fun? Pick the oddball out of the following:

Insider Transactions Reported - Last Two Years
Date Insider Shares Type Transaction Value*
Dec 29, 2010 MARSHALL PHILLIP KENT
Officer 500 Direct Purchase at $8.25 per share. 4,125
Sep 24, 2010 ANAKAR NOUR-DEAN
Director N/A Direct Statement of Ownership N/A
Aug 24, 2010 MARSHALL PHILLIP KENT
Officer 750 Direct Purchase at $6.16 per share. 4,620
Jul 14, 2010 WATTERS ROBERT L
Director 10,000 Direct Option Exercise at $2.80 per share. 28,000
Jul 14, 2010 LANGAN ERIC SCOTT
Officer 5,000 Direct Option Exercise at $2.80 per share. 14,000
Jun 16, 2010 REESE TRAVIS
Officer 5,000 Direct Sale at $9.30 per share. 46,500
May 18, 2010 REESE TRAVIS
Officer 5,000 Direct Option Exercise at $2.80 per share. 14,000

As only the NOBLEST practitioners of capitalism load up on options priced near the bottom, what in the world is Mr. Marshall doing by paying good money for his shares?!?