Bought more $RICK
Enough for the moment (perhaps).
Does the CEO worry you at all? I get weird vibes.
@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
@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
@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
ever concerned of there only being 9 million shares outstanding?
@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!
@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.