Bought more $RICK
Enough for the moment (perhaps).
Fat Baby Funds's avatar
Does the CEO worry you at all? I get weird vibes.
Joshua Simka's avatar
@fatbaby Given the industry I would expect a somewhat seamy air. They do have a well defined capital allocation strategy
sam stribling's avatar
@fatbaby honestly givin the business if he didn’t give you weird vibes it would be a bigger red flag 🚩 😆
Stock Metal Investment's avatar
@strib haha, I get weirder vibes from the biggest shareholder, Adam Wyden, who is always on call. Dude is a maniac but its funny af xD
Stock Metal Investment's avatar
@fatbaby Like @tomato said, given the industry it's okay. If you actually listen to Eric talk, you realize that he knows the business and industry in and out. The way he thinks about capital allocation also is top notch. Given the industry, they kinda struggle to get a better shareholder base. For years $RICK went to analyst days and stuff like that without too much attention(basically just meeting the same people at those meetings), so they decided to try the social media approach. It's getting a bit much lately, but I'm fine with it. The Short report on twitter was also super interesting. So much attention for RICK lol. I want more terrible Short reports on my companies haha
Fat Baby Funds's avatar
@stonkmetal embrace the weird I guess!
Stock Metal Investment's avatar
@fatbaby yeah and I mean he follows me....so he can't be bad lol
Paul Cerro's avatar
@stonkmetal Bullish on RICK - I'd rather him be weird given the business. Weird one's think outside the box
Fat Baby Funds's avatar
@paulcerro Time will tell! I’ll just sit this one from the sideline and watch the craziness happen.
Stock Metal Investment's avatar
@fatbaby The thing is that he basically is trying to adopt William Throndikes Outsider framework into their capital allocation strategy. If business doesn't slow down dramatically we're currently trading at over 10% FCF margin, closer to 20% even. Reasonable to sit it out though lol, it's not for everybody :D
Fat Baby Funds's avatar
@stonkmetal good points, but still throwing this in the too hard category (pun intended)
Stock Metal Investment's avatar
@fatbaby I respect that and good one haha
Paul Cerro's avatar
@stonkmetal Yea it's not for everyone but the way the business has been performing, it's doing well. That combined with the multiple rerating just for bombshells puts this company right where it's trading at today. Nightclubs from there (with owned real estate) is the cherry on top
frank civitello's avatar
@fatbaby that's what she said!!
frank civitello's avatar
ever concerned of there only being 9 million shares outstanding?
Stock Metal Investment's avatar
@frankieciv608 The CEO said if there would be a liquidity problem, that there are too few shares traded, they would just split the stock. No issue here.
sam stribling's avatar
@frankieciv608 so admittedly I don’t know a ton about $RICK but considering the business I think that a low share count is better than a high one. Having just a handful of gentlemens clubs really is a small/microcap business. Low share count keeps it from a penny stock plus gives it flexibility to split / grow later in its development. Just my take!
frank civitello's avatar
@strib @stonkmetal I see your points, was just curious.. thanks guys!! hope the day is going easy
sam stribling's avatar
@frankieciv608 on vacation so certainly can’t complain!
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Stock Metal Investment's avatar
@strib Sick :D And yeah, not the typical 500 trillion dollar TAM company lol. They do have lots of optionality though and the CEO said repeatedly that they are a free cash flow company, not a strip club company. They'd be willing to hop into new verticals, like they did with Bombshells.

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