Rick's Cabaret International, Inc. completes acquisition of topless nightclub in

21 comments

• Club_Goer_Seattle

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  11 years ago

  I left L.A. in 2006, but my knowledge of that area is that it was rather marginal. I wouldn't think the Rick's Cabaret Internation company would find that location attractive. I've never been to any of their clubs, but I sense they're upscale operations. This location is surrounded by Gardena, Compton, Lakewood, and Carson. From looking at an aerial photo, it's defiitely in an industrial area, which is the current trend in siting strip clubs (not the clubs' choice, though), in contemporay adult entertainment zoning practices. Maybe its close proximity to the beach cities is appealing to Rick's.
• SlickSpic

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  11 years ago

  That area is COMPTON! Tell em Club Goer. Dominguez Hills is just a nice way of saying COMPTON!
• SlickSpic

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  11 years ago

  I'll stick to COI Till the day Die.
• sclvr5005

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  11 years ago

  Yup. The COI is my mainstay as well.
• SlickSpic

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  11 years ago

  People who don't know about COI are missing out in life. After the club, you're surrounded by good Asian or Mexican food. Can't beat that. Or Tommy's Burgers. That place was my late not spot.
• Chili Palmer

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  11 years ago

  Clearly, they are going for the South Bay crowd, as well as the engineers still working at the various aerospace companies left in the area. Del Amo Blvd is an easy exit off the 405 freeway, so no one will have to pass through sketchy neighborhoods to get there. Spearmint Rhino in Torrance does well as a topless only club in a similar area, and even the clubs that are more "urban" like Fantasy Castle are busy and hopping most nights. I kinda chuckle at the "Vivid" is the most powerful brand name in the adult industry line; someone is still living in 1990 apparently. I've never been inside any other Rick's establishment, but if they are going for the upscale "look but don't touch" BS in this area, this place will be a money pit until they sell it to the Deja Vu chain for 25 cents on the dollar. CP
• Dougster

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  11 years ago

  From the reviews here it sounds like RICK'S was pushing it extraswise at Tootsie's in Miami. The next couple if years are really going to be make it it break it time for them. If th consumer and economy come back, which I think they will their growth strategy was perfectly timed, if bit their debt and plunging RE value swallows them. I've got about $50k of my own money in their stock betting that they did time it right. Should know by fall whether they are in track or not.
• txtittyfan

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  11 years ago

  While it is in a sketchy part of SoCal, as Chili alludes to, it is fairly easy access for the afterwork crowd. The only problem with a company like RICK is that it really is not in a growth industry, and growth by acquisition results in a lot of intangibles on the balance sheet as RickD pointed out a few months ago, and a lot of excessive debt.
• Dougster

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  11 years ago

  So tittyfan what is your financial advice regarding the stock? :-) A few years ago, I remember you were asked and you said to buy RICK stock and sell covered calls against that stock. One of the problems is the series of calls you suggested did not exists so when you made that recommendation so there was no way to tell if the calls were well priced or not. (I also think covered calls might be okay for old people looking to collect income, but generally the risk/reward is all backwards. I want something with unlimited upside and limited downside. Especially for a clearly speculative venture like RICK's. For that Covered calls is all backwards - you risk losing nearly all your capital, but you limit your upside. Exactly like you to give such ass-backwards advice though.)
• txtittyfan

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  11 years ago

  Oh Douggie, it looks like you are back to making up stories again. I never recommended buying RICK. It is a POS company and stock. I made the comment to a member who was concerned about losing money on his investment. I suggested that he sell 6 month out of the money calls as a way to minimize potentail losses. I did not look up the expiration series at the time, because in my experience, options are available in 3 month series increments depending upon their expiration date. You were quick to point out that at the time, there was no 6 month. If I remember correctly, the series expired in 5 months. All you did was show that you do not understand concepts. Back to RICK, they have questionable management, they ruined the old Houston Ricks. They took a beating in Las Vegas recently. And their equivalent of same store sales is declining year over year. That is a metric analysis that you probably don't see in your Wikipedia induced attempt at being knowledgable. And by the way, I am making more money shorting Treasuries than you are owning Rick, and my investment is risk freee.
• Dougster

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  11 years ago

  tittyfan: " did not look up the expiration series at the time" Here's a little tip for you tittyfan that I'll offer you for free: It's generally a good idea to look up the price of calls you intend to sell before actually suggesting they be sold. Guess I better explain why in a bit of detail since you do not exactly have a history of being bright with regard to financial matters: Since the goal is buy low and sell high, if you don't look up the price before you give your advice you have no way of know if you are selling them for a fair enough price to justify how much you are limiting your upside. Or the spread might be killer. In this case both happened in a series you struggled to find after the fact. The bid/ask on the calls were 0.15/0.40. So let's say you got the 0.20 for selling those calls. That is hardly any comfort on a stock like RICK. If you thought it a was a POS you should just said sell the stock. 0.20 if you got it is about 3% downside protection. Hardly any protection it the stock is POS as bad as you say and could go belly up. Look at the upside, however, if did hit the strike price of a series you scrambled after the fact to sell, it was likely breaking out. Exactly where you did not want to get called away for maybe 0.20 of downside protection. Quite the joke, and terrible, terrible advice as is consist with your history here.
• Dougster

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  11 years ago

  tittyfan: "And by the way, I am making more money shorting Treasuries than you are owning Rick, and my investment is risk freee." Right your mathematically impossible strategy to make a higher return than CDs by shorting treasuries and hedging by "selling a short futures position". One little problem, though. Your last phrase doesn't even make any sense. A short futures position is an obligation to deliver something at a certain date. It is a liability not an asset you can sell. If I have an obligation to deliver 1,000 barrels of oil on a certain date, I am not going to find someone who is willing to pay be anything to take over that obligation. I am going to have to pay them, i.e. close my futures contract or buy an offsetting long position. What you are saying is equivalent to saying that if someone else has a liability like a mortgage on their house, they should just sell it and collect some money. That is just brilliant. I'm sure you could come up with "risk free" scheme to make huge money if that were true, but one little problem... :-)
• Dougster

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  11 years ago

  Here's the original thread in which txtittyfan suggested selling a non-existent series of calls before he even bothered to check the price: [view link] Looks like I made a minor mistake above. The bid ask was actually 0.25/0.40, so snake would have got $0.325 (about 3%) downside protection by following tittyfan's advice, very little comfort since the stock was down $3 (around 30%) by August! You should have just said sell, tittyfan. Another gem in that thread: txtittyfan (March 23, 2011): "Shorting Treasuries with a 8-15 year holding period would be a good addition to your holdings at this point. " And that advice would have cost you -16% in a period where just buying and holding an S&P index ETF would have made you about 35%. (Note there is no mention of "hedging" by "selling a short futures position". That was just a complete non-sense phrase tittyfan made up after the fact to try and cover his ass. But when has lying ever been a problem for tittyfan?)
• Dougsterr

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  11 years ago

  OMG how truly pathetic am I that I keep records & copies of everything posted here on the hope that one day I can use it to make myself look even dumber than everyone already knows that I am!!!!
• Dougsterr

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  11 years ago

  Not to mention that I use my stupidity to constantly derail threads that I have no business posting in anyway!
• Dougster

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  11 years ago

  Looks like tittyfan has nothing to say after the records demolish him. So he'll take some little pot shots with pebbles from his "Douugster" alias, since he know what will happen if tries to address things head on. Actually that probably is a better strategy for him. Not very brave, but better for other reasons. I'll give him that much! ;-)
• txtittyfan

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  11 years ago

  Sorry Douggie, Douugster is not my alias. But you have to agree that his assessment of you is "spot on". I am just glad that I have enough of a life that I don't need to constantly post 24/7 as you do. I am off to enjoy my day while you wallow in your self absorbtion and delusions.
• Dougster

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  11 years ago

  I see. Nothing to say about your non-sense phrase regarding futures. Nothing to say about your mathematically impossible "risk free" investment strategy. Nothing to say about the -16% people would have lost by following your advice even while the S&P was up 35%? Nothing to say about suggesting that someone sell something before even looking up the price? Ok, I can see why you want to run, tittyfan, run!
• Dougster

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  11 years ago

  tittyfan: "I am off to enjoy my day while you wallow in your self absorbtion and delusions." Nah, I'm waiting for the futures market to open in a few hours. Gonna be fun weak coming up in Japan. Say, you got any advice on how people should play the Nikkei or the Yen? :-)
• Club_Goer_Seattle

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  11 years ago

  I believe that the last time this argument came up, Farmerart gave his opinion of Ricks Cabaret International, if anyone cares to look it up.
• lopaw

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  11 years ago

  I think that this is the club that alot of the dancers down at Fantasy Castle have been talking about for well over a year now. They'll be happy that there will be another topless joint nearby for them to try out. Many of the former Wild Goose girls will probably end up working there.