Posts for Ticker ‘RICK’

Many Cult Stock Changes In Russell 3000 Rebalance (CPST, BCON, FNSR, RICK, SIRI, TSCM, URRE, VG)

burning-money-picThe Russell 3000 Index is being rebalanced and many cult stocks with low share prices that have a wide following and high trading volume are getting booted off the index. Beacon Power Corporation (NASDAQ: BCON), Capstone Turbine Corp. (NASDAQ: CPST), Finisar Corp. (NASDAQ: FNSR), Rick’s Cabaret International Inc. (NASDAQ: RICK), SIRIUS XM Radio Inc.(NASDAQ: SIRI), TheStreet.com, Inc. (NASDAQ: TSCM), Uranium Resources, Inc. (NASDAQ: URRE), and Vonage Holdings Corporation (NYSE: VG) are among the former high-flier stocks getting removed from the Russell 3000 that have become cult stocks with a large investor base.  We have given some color on these changes.
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Posted on: June 19, 2009 – 12:01 pm in Cramer, Cult Stock, Index, Trading Alert, , , , , , , ,

Revisiting Rick’s After Results (RICK)

Ricks_logoRick’s Cabaret International Inc. (NASDAQ: RICK) for the most part is as controversial of a stock as you can get.  It owns and operates "gentleman’s clubs" and is still growing organically and via acquisitions.  We featured this stock last night for our subscribers of our weekly "10 Stocks Under $10" newsletter.  Below is part of the synopsis sent out:

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Posted on: November 17, 2008 – 3:04 pm in Entertainment,

24/7 Day Trading Alerts: Strip Club, Naked Lady Stock Rocks (RICK)(WYNN)(NOK)(TXN)(QCOM)(ERIC)

Cammonopoly_wideweb__430x3250Rick’s Cabaret (RICK) may be in a business which many investors disapprove of. It runs strip clubs. Nonetheless, the stock is soaring today.

Another vice stock, Wynn (WYNN) is trading heavy on a new stock offering.

After Nokia’s warning that global handset sales have gone to hell, stocks in the sector including Texas Instruments (TXN), Qualcomm (QCOM), and Ericsson (ERIC) are having a bad day.

Douglas A. McIntyre

Posted on: November 14, 2008 – 9:51 am in Research, , , , ,

Top 10 Pre-Market Analyst Upgrades & Downgrades (RE, FIG, PRE, SGEN, TROW, AUY, NT, RICK, RDS.A, X)

These are ten of the top analyst upgrades and downgrades we have seen this Monday morning with about 2 hours to the the open:

  • Everest Re (RE) to Outperform at Wachovia.
  • Fortress Investment (FIG) Raised to Hold from Sell at Citigroup.
  • PartnerRe (PRE) Raised to Outperform at Wachovia.
  • Seattle Genetics (SGEN) Raised to Outperform at Oppenheimer.
  • T. Rowe Price (TROW) Raised to Outperform at KBW; raised to Outperform at Wachovia.
  • Yamana Gold (AUY) Raised to Outperform at CIBC.
  • Nortel (NT) Cut to Neutral at UBS.
  • Rick’s Cabaret (RICK) Cut to Neutral at Merriman Curhan Ford.
  • Royal Dutch Shell (RDS.A) Cut to Underperform at Credit Suisse.
  • US Steel (X) Cut to Sell at UBS.

Jon C. Ogg
October 27, 2008

Posted on: October 27, 2008 – 6:50 am in Analyst Calls, , , , , , , , , ,

Rick’s Revisited, Still Growth & Value Alike (RICK)

Rick’s Cabaret International Inc. (NASDAQ: RICK) may not be one of the most controversial companies out there, but it is definitely one of the stranger stocks out there because of the fact that it is the largest public "gentleman clubs" out there.  The company has also grown by acquisitions and the company plans to keep making acquisitions.  What is interesting if you look at the company’s guidance and do not consider the industry it is in, it is hard to argue against the value of the company from a growth investor mind and from a value investor mind.  That’s GARP for you.

The company posted earnings yesterday and gave its guidance, which it also gave in a second press release today.  For its 2008 fiscal year (Sept-2008 end) the company said it expects approximately $61 to $62 million in revenues.  That would put after tax net income around $10.5 to $11 million, which would yield about $1.25 to $1.30 EPS.  Its outlook for fiscal Sept-2009 puts revenues exceeding $100 million, and yields a an earnings range of $2.30 to $2.50 EPS.

While the company has very thin analyst coverage, these numbers are well above the two estimates measured by First Call.  Fiscal Sept-2008 estimates are $1.17 EPS and about $58 million (top estimate is $1.21 EPS).  Fiscal Sept-2009 estimates are $1.88 EPS and almost $79.7 million. 

The company did also note different numbers for the calendar years as well, although we wanted to compare the numbers above on an apples to apples basis.  These 2008 numbers don’t reflect a pending acquisition, but the 2009 numbers do.  Between now and then, we won’t be surprised if the company has made more acquisitions.

Rick’s shares have more than doubled over the last year, and its market cap is now approximately $158 million based upon a $21.00 stock price.  As far as forward valuations, for 2008 it has a forward P/E ratio at the Low-end of estimates at 16.8 and trades at roughly 2.5-times revenues.  For Fiscal Sept-2009, its forward numbers at its own low-end of estimates are a 9.1 forward P/E ratio and roughly 1.5-times revenues.

We covered this when its market cap had just crossed over $100 million, and you can see how these new projections are ahead of those numbers.

There is no doubt that many cannot own this stock because it falls in the "sin stock" category.  But for those who can and if you can trust the company’s numbers, then all of a sudden you have a low-multiple growth stock with the potential for close to 90% earnings per share growth.  Now that the market cap is north of $100 million, there are also many more funds that are not barred from owning it because many have a $100 million market cap minimum.  As long as you are comfortable with the company’s projections and as long as you don’t mind owning a sin stock, the projections look and sound great.

A college logic class might even deduce that topless bars are nearly recession proof. 

Jon C. Ogg
May 9, 2008

Jon Ogg is also a producer and editor of the "10 Stocks Under $10" weekly newsletter; he does not own securities in the companies he covers.

Posted on: May 9, 2008 – 9:56 am in Entertainment,

Cult Stock Earnings Bonanza (DIVX, VCLK, CROX, HANS, LOCM, RNWK, RICK, TRLG, VG)

While most of the investment community goes out breaking down earnings for major stocks, there is a huge interest in many of the cult stocks reporting earnings.  Among the cult stocks we have reporting this week, the following is a list of key stocks reporting:  DivX, Inc. (NASDAQ: DIVX), ValueClick Inc. (NASDAQ: VCLK), CROCS Inc. (NASDAQ: CROX), Hansen Natural Corporation (NASDAQ: HANS), Local.com Corp. (NASDAQ: LOCM), RealNetworks Inc. (NASDAQ: RNWK), Rick’s Cabaret International Inc. (NASDAQ: RICK), True Religion Apparel Inc. (NASDAQ: TRLG), and Vonage Holdings Corporation (NYSE: VG). 

Cult stocks are often fad stocks, but they tend to see explosive volume on news and often have high short interest.  Many of these stocks have been covered in our weekly "10 Stocks Under $10" newsletter we send out too.  Here is a breakdown of these individually:

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Posted on: May 5, 2008 – 1:35 pm in Cult Stock, Earnings, , , , , , , , ,

Rick’s… Now a $100+ Million Empire (RICK)

It isn’t every day that stock analysts and reporters get to cover a publicly traded topless bar chain.  But all issues aside and assuming today’s rally holds this stock will start showing up on many popular stock screenings that traders use to identify new stocks.  Shares of Rick’s Cabaret International, Inc. (NASDAQ:RICK) are trading up over 5% today on the company’s forward guidance for fiscal 2008 and 2009, and its fiscal years end on September 30 of each year. 

The company has now crossed the $100 million market cap stock as well to a level of roughly $108 million.  The assumptions (below) seem reasonable if you aren’t using an exacttarget on a month to month basis, and the valuations here with a 35% ormore earnings growth and low forward P/E ratios actually make Rick’sseem appropriate for growth investors and value investors alike.  The only issueat hand besides the near-micro-cap market capitalization is that theunderlying industry will keep some investors away or reserved becauseit falls under the "sin stock" status.  Here is forward guidance offered:

  • For fiscal 2008, the company sees sales of $52 million, and after tax net income of about $7 million or about $0.95 EPS.  For calendar 2008 it is aiming for $58 million in revenues and net income of about $9 million or $1.25 per share.
  • For fiscal 2009, the company sees sales of approximately $75 million, with net income of about $13 million or about $1.70 EPS.

Valuations assumptions are using today’s values even after the gain to $17.60.

  • For Fiscal 2008 (Sept.), Rick’s has a forward P/E ratio of 18.5 and trades at roughly 2.07 times revenues. 
  • For Calendar 2008, Rick’s has a forward P/E ratio of 13.3 and trades at roughly 1.86 times revenues. 
  • For Fiscal 2009 (Sept.), Rick’s has a forward P/E ratio of 10.35 and trades at roughly 1.44 times revenues.

The assumptions don’t seem unrealistic if you look back over the acquisition and growth history of the company:

  • These figures include two recent acquisitions and assume a target of 6% on same-store-sales growth. 
  • The projections anticipate issuance of 225,000 new shares of common stock for the Philadelphia transaction and up to 1.2 million shares, plus the assumption of $10 million in debt in connection with financing other acquisitions.
  • These projections assume the acquisition of one additional club in 2008; and further assume completing two acquisitions in early 2009.
  • The 2009 outlook assumes issuing an additional 400,000 shares of common stock in connection with acquisitions.

While shares are not on an intraday high, these levels above $17.60 would mark a high close for the stock.  Its 52-week trading range before today is $5.02 to $16.76 and the company had 180,441 shares listed as its last short interest count, or about a days to cover ratio of 1.4.

Jon C. Ogg
October 31, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the Special Situation Investing Newsletter and does not own securities in the companies he covers. 

Posted on: October 31, 2007 – 12:20 pm in Cult Stock, Earnings, Entertainment, ,

52-Week Highs For September 7, 2007 (AEM, ABX, BDE, DRYS, GLD, GOLD, INSW, IVGN, JNPR, NWK, NYB, PDX, PLMD, RICK)

Usually we cover 52-week lows as many traders look for the bottom fishing opportunities in battered and tattered stocks.  But on big down days it is often important to look at which shares put in 52-WEEK HIGHS.  Some of these didn’t close above their prior yearly highs, but you get the idea.  Here is how crummy the market was today:

DJIA            13113.38     -249.97     -1.87%
NASDAQ    2565.7          -48.62       -1.86%
S&P500      1453.55       -25.00       -1.69%

The prevailing thought is that if stocks stay strong on a weak and crummy weak, imagine how well they’d do in an up-market.  With strong gold you’ll notice a few gold names on here.  Among others are a few tech names, and surprisingly a topless bar operator (not kidding). Here goes:

AGNICO Eagle Mines (NYSE:AEM) $49.19; 52-week $27.24-$48.35
Barrick Gold Corp. (NYSE:ABX) $36.36; 52-week $26.94-$36.46
Bois d’Arc Energy (NYSE:BDE) $18.83; 52-week $12.49- $18.75
DryShips, Inc. (NASDAQ:DRYS) $76.92; 52-week $12.63-$76.45
streetTRACKS Gold Shares (NYSE:GLD) $69.39; 52-week $55.55-$69.08
InsWeb Corp. (NASDAQ:INSW) $8.90; 52-week $1.96-$8.80
***Invitrogen (NASDAQ:IVGN) $80.00; $54.70-$80.56
***Juniper Networks (NASDAQ:JNPR) $34.58; 52-week $16.50-$35.09
Network Equipment Tech (NYSE:NWK) $11.54; 52-week $4.06-$11.54
***New York Community Bancorp (NYSE:NYB) $18.41; 52-week $15.69-$18.43
Pediatrix Medical Group (NYSE:PDX) $62.52; 52-week $43.85-$61.69
***PolyMedica (NASDAQ:PLMD) $51.86; 52-week $35.82-$51.97
Randgold Resources Ltd. (NASDAQ:GOLD) $28.48; 52-week $19.10-$27.42
Rick’s Cabaret (NASDAQ:RICK) $11.41; 52-week $5.02-$11.21

***denotes stocks that hit new highs intraday but didn’t hold them

Jon C. Ogg
September 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: September 7, 2007 – 4:47 pm in HI/LOW, , , , , , , , , , , , , ,