Don't show againArchive for the ‘Rick’s (Nasdaq: RICK)’ Category
Why Is Everyone Hating On Rick’s? Is It Time To Buy?
There is a definite slowdown in Rick’s Cabaret International’s (NASDAQ: RICK) business as a result of the overall market forces and economic malaise, but all things being equal, the company still reported fantastic numbers for 2008, but failed to give forward guidance as a result of the down economy finally peeking its head at the company’s strip clubs.
As I wrote about previously, I wanted to see Rick’s results come in where they said they would (they did for the most part), and show continued execution on the cash flow and free cash flow side of the business (which they also did). Finally, I was looking for Rick’s forward guidance to be cautious with respect to the headwinds that they are facing, and that also came to pass.
In fact, Rick’s failed to give forward guidance based on the precipitous slowdown in their business within the last month.
So what does this mean for our investment? Is Rick’s still a good place to put new money to work? Is the business flawed or coming under pressure that would prevent the company from continuing as an ongoing concern? What about Rick’s cash reserves and liquidity?
In this post I’ll be breaking down Rick’s full earnings release, as well as their analyst conference call, and round out my post with what you should do with Rick’s stock.
Rick’s: Still Entertaining or Ready to Slide?
The economy might be going down the proverbial toilet, and consumer stocks on most people’s radars are getting crushed, but one industry that is bucking the trend, at least up till now, is the adult entertainment industry.
I guess something about the escapism that a beautiful woman provides to those in times of stress has led PeakStocks.com portfolio recommendation Rick’s Cabaret (NASDAQ: RICK) to report pretty amazing results, despite all the turmoil going on today.
Rick’s will be posting their Q4 and full year 2008 earnings and hosting their analyst conference call after the market closes on December 29th.
But because their stock was getting hammered along with the rest of the market, and small and micro cap stocks in particular, Rick’s took the unusual step a few weeks back of preannouncing their latest results to sooth Wall Street’s concerns over the rapid deterioration of the nation’s economy.
Aside from a brief pop in the stock, it hasn’t seemed to help.
In this post I’ll go over the important aspects that we need to be aware of before Rick’s announces earnings and then break them down into the following parameters:
- What went right in the quarter: What were some of the positive developments that occurred within the company in the last 3 months.
- What went wrong in the quarter: What were some of the negative developments that occurred within the company in the last 3 months.
- What I want to see: All things considered, what I realistically want to see from the company as it relates to their business.
- What we need to see: At the minimum, what we need to see for our investing thesis to still hold and an investment in this company to be prudent.
- What we’ll probably see: After weighing what’s been going on for the last 3 months, what we can realistically expect when they do announce their earnings.
- Bottom Line: What it all means, and what you should do.
Top 5 Stocks for December 2008
WOO-DOGGY!
Would you like some volatility to go along with your morning coffee?
Since I last came out with my top 5 stocks for November, the market’s gyrations have certainly put everyone on edge, and make buying stocks at this juncture definitely not for the faint of heart, or those with very short term investing time frames.
I recently wrote that now was a fantastic time to buy shares of companies you have been watching and where the fundamentals present an excellent risk/reward scenario.
My watch list is no different, and this month I have a broad range of stocks that I am looking at for possible inclusion into the PeakStocks.com portfolio.
These stocks enter and exit my Top 5 as constant fluctuations in both price, market conditions, and business fundamentals constantly alter the investment thesis.
Please note that my Top 5 Stocks for December aren’t yet formal recommendations.
I have more due diligence that I have to perform on them, but they are compelling enough with the research that I have done to be at the absolute top of my list, at least as of this writing.
News Bites for Monday November 17th: Rick’s Cabaret, eHealth
I wanted to update you on 2 of the companies in the PeakStocks.com portfolio that have had developments in the last few days that you should be aware of.
This includes:
- Rick’s Cabaret International, Inc. (NASDAQ: RICK), which had some bad news in the form of a lawsuit, and then some really good news in the form of higher than expected sales and same-club sales numbers which caused the stock to pop.
- eHealth, Inc. (NASDAQ: EHTH), which recently announced a share repurchase program to buy up to 10% of the company’s shares.
Let’s get right to it.
Top 5 Stocks for November 2008
It’s been another incredible month for stocks, and especially for those on my watch list.
With rare exception, stocks of all shapes and sizes are getting pummeled and are presenting us with great buying opportunities for those with a long term investment horizon.
I recently wrote that now was a fantastic time to buy shares of companies you have been watching and where the fundamentals present an excellent risk/reward scenario.
My watch list is no different, and this month I have a broad range of stocks that I am looking at for possible inclusion into the PeakStocks.com portfolio.
These stocks enter and exit my Top 5 as constant fluctuations in both price, market conditions, and business fundamentals constantly alter the investment thesis.
Today I wanted to give you a heads up on some of the stocks that I was watching for possible inclusion into my portfolio, specifically ones that are high on my list, and most likely to be added as formal recommendations in the weeks to come as they reach desirable price points, and present wonderful opportunities for long term investors.
Please note that my Top 5 Stocks for November aren’t yet formal recommendations.
I have more due diligence that I have to perform on them, but they are compelling enough with the research that I have done to be at the absolute top of my list, at least as of this writing.
Time To Go Shopping: 3 Stocks I’m Buying Today
It’s time to put some money to work immediately.
I don’t profess to know when the markets will turn, or how long it will take, but I do profess to know that there are quality companies out there that are begging to be purchased, if only in small increments at the present, and held on to for years to come.
The three companies that I have added to my portfolio are probably no secret to anyone who has been following my recommendations for some time.
They are:
I am advocating purchasing 1/4 position in each one.
I’ll be writing full company spotlights and the reasons for my purchases in much greater detail in upcoming posts, but with the decline in the overall market, dipping our toes in the water and purchasing these great companies at these levels was something that needed to be done now.
Below are brief explanations about what the companies do, my reasons for adding them to the portfolio, and some of the risk factors you should be aware of before purchasing shares.
Top 5 Stocks for October 2008
The tumultuous market has continued to beat down stocks of all shapes and sizes.
This is great news for those of us waiting on the sidelines to put new capital to work.
This month I have a broad range of stocks that I am looking at for possible inclusion into the PeakStocks.com portfolio.
These stocks enter and exit my Top 5 as constant fluctuations in both price, market conditions, and business fundamentals constantly alter the investment thesis.
Today I wanted to give you a heads up on some of the stocks that I was watching for possible inclusion into my portfolio, specifically ones that are high on my list, and most likely to be added as formal recommendations in the weeks to come as they reach desirable price points, and present wonderful opportunities for long term investors.
Please note that my Top 5 Stocks for October aren’t yet formal recommendations.
I have more due diligence that I have to perform on them, but they are compelling enough with the research that I have done to be at the absolute top of my list, at least as of this writing.
