Rick's Continues to Piss Away Shareholder Value
rickdugan
Verified and Certifiable Super-Reviewer
As I predicted some months back, those who bought this dogshit stock north of $10, and continued to hold it, are no doubt sorry that they did. Every other stock in the country, outside of energy stocks, have surged over these many months, but RICK is headed right back for the toilet. Why you ask? Because their senior management is a bunch of fucking children more interested in playing with new toys than in growing shareholder value.
I hate to say I told you so when I questioned why the fuck they started trying to branch out into low margin restaurants, or spent millions on air space over an uber tiny (and pretty shitty) club in NYC, or why they needed 3 planes, or...anyway, you get the picture. But now they are blowing money that they don't have on an energy drink business that they cannot hope to understand. Where the fuck is their piss poor excuse for a Board of Directors? Why is this management team still in place, able to fuck up what should be a cash cow, by taking on unmanageable debt to pay for things that they should not be buying?
Anyway, here's one cute article on the matter, but others abound if you are looking for something more authoritative than some mutt on Seeking Alpha:
http://seekingalpha.com/article/2635365-…
I hate to say I told you so when I questioned why the fuck they started trying to branch out into low margin restaurants, or spent millions on air space over an uber tiny (and pretty shitty) club in NYC, or why they needed 3 planes, or...anyway, you get the picture. But now they are blowing money that they don't have on an energy drink business that they cannot hope to understand. Where the fuck is their piss poor excuse for a Board of Directors? Why is this management team still in place, able to fuck up what should be a cash cow, by taking on unmanageable debt to pay for things that they should not be buying?
Anyway, here's one cute article on the matter, but others abound if you are looking for something more authoritative than some mutt on Seeking Alpha:
http://seekingalpha.com/article/2635365-…
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35 comments
https://www.tuscl.net/postread.php?PID=2…
Besides the crash in oil it also looks like the lawsuit was enough to send it below the $10 level I wondered if they were doing buybacks at.
No idea where they will start doing buybacks again or how much time that will buy them.
It's too bad that there is more to the name now then being an energy play, since I think those stocks are getting ready to bounce soon, and I'll be picking up some of the purer energy names in the morning.
What is disturbing from all of the recent moves that they have made is their continued efforts to try to move away from their core business. Even the name change seems designed to make them look like something other than an adult entertainment company. I am starting to believe that they lack confidence in strip clubs as a long-term, sustainable business model.
And RICK has been a dogshit stock forever. Every so often, they manage to convince the public that they are doing something that might actually make sense and add value, but it always crashes back down to earth eventually. Only these knuckleheads can take a business model so inherently profitable and continue to fuck it up so badly.
I believe there was even the prediction of doubling or tripling in value? Good thing nobody took that advice.
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"As for your "limited upside" versus huge risk. Think you got it backwards. The debt situation and other troubles have been known forever, it was going to breakdown would have done so already. As for how big, the upside is. Well, I have a number in mind which is much higher than the $15 which the article I linked gave as a conservative target. I doubt it will happen in one year, might take three, but I think this thing can easily double. So I think maybe $1 downside risk from here, since there are buyers eager to get in on dips, and the board is authorized to buyback stock to hold it up, and more another $11 upside. Maybe if there was a totally devastating headline back into the mid-$8's at which point I would still be up overall, but $3 risk versus $11 potential reward... I like it!"
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Since that exchange, the stock peaked at a little over $12 in late October and closed today at $9.70. Little upside, big downside anyone? ;)
The other side never had the guts to make a prediction beyond do nothing. When I asked if they would short they said "no". Even when I let them pick any stock in the market against one they were too scared to name one. So my 45% performance against their zilch. I think I definitely get an A on this one.
Better yet I also prove that I'm more than happy to admit when I'm wrong and reverse positions. Facts change, my opinion changes. Never any danger if you follow that rule and don't let your ego get in the war.
No indications yet of what it will do after it stabilizes after this fall or where that stabilization will be. My guess is the mid $8s, but we'll just have to wait and see when the time comes.
I wonder if RickyBoy still thinks it will drop below $8 or has changed his mind yet?
How come you only mention your prediction when the price was around $10.50 and not your first prediction when it was at $8.50? LOL!
Yep, sounds like Dugly.
My opinion is the same as it ever was. It was a bad idea at 8.50, a worse idea at 10 and a downright atrocious idea at anything north of 11. And my opinions as to why that is remains the same: horrible financials and even worse ongoing management decisions.
Well it's up 14% since RickyBoy said this, north of $10 at $10.94 and moving up. Meanwhile the S&P is only up 2%.
RickyBoy did a very good job of speaking up only after it had already pretty much bottomed, as has been his track record on this ticker. The fact that he finally found the cojones to say something is one of the reasons I decided to flip from short back to long a couple of weeks after he (wrongly) got excited that further "collapse" was coming (really there only a short term 15% dip, which has now bee erased):
https://www.tuscl.net/postread.php?PID=2…
But hey, I'm sure any day now we'll all wake up and they will have to declare bankruptcy. Right, RickyBoy?
"Buy it! No sell it! Buy it again!"
http://www.prnewswire.com/news-releases/…
I'd take profits on any pop in the stock price today though. It looks like the markets want to sell into the Fed rate hike which I think we get next month. A 20% gain over a few months ain't too bad though.
(The $1.5 million in buybacks is interesting.)