Revisiting Rick’s After Results (RICK)
November 17, 2008 by Douglas A. McIntyre
Rick’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:
In October its "same-store sales" grew 8%. This is almost unbelievablewhen you consider that people are pinching pennies left and right…You really need to go look at the numbers reported on Friday. You’llsee why it rose over 12% on a crummy day.
…live entertainment of this sort just hasn’t been excessively slowed down by a poorer and poorer Joe Public.
This stock was admittedly run up way too high by the start of the year, but is now off 80% from highs.
There are risks in this business that do not exist in others because ofthe nature of the sin business, and this is not the sort of stock thatsteady church-goers would want to say that they made money or lostmoney in.
Owning it and then doing some on-site research and analysis might evenqualify you for some "in the field research expenses" if you are thatcreative.
But, all joking aside… the numbers speak for themselves and we wanted to keep you abreast of this one.
Jon C. Ogg
November 17, 2008
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