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KONA - Kona Grill


peridotcapital

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Another example of a great capital allocator and hedge fund manager CEO at work.

 

I've not been following this much but who's that?

 

The stock's recent malaise seems to stem from the company's decision to rapidly accelerate unit growth under CEO Berke Bakay, who was a board member (and hedge fund manager) before taking over the top job. Previous management teams had opened new units in poor locations and several were closed shortly thereafter. After stabilizing the unit base and hiring a development veteran from PF Chang's, Bakay led Kona in opening 7 new units in 2015 and 8 in 2016, expanding the unit base by 50% in just two years.
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Another example of a great capital allocator and hedge fund manager CEO at work.

 

I've not been following this much but who's that?

 

The stock's recent malaise seems to stem from the company's decision to rapidly accelerate unit growth under CEO Berke Bakay, who was a board member (and hedge fund manager) before taking over the top job. Previous management teams had opened new units in poor locations and several were closed shortly thereafter. After stabilizing the unit base and hiring a development veteran from PF Chang's, Bakay led Kona in opening 7 new units in 2015 and 8 in 2016, expanding the unit base by 50% in just two years.

 

thanks, spek!

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Hey all:

 

It is kind of official now.  KONA shareholders gets nothing!

 

Please see:

 

https://www.bizjournals.com/phoenix/news/2019/10/16/kona-grill-investors-get-nothing-back-from-25m.html?ana=yahoo&yptr=yahoo

 

Stock was last trading at $.0065.

 

Interesting thing is that after closing a bunch of location, KONA might be a half way decent chain.  STKS is buying the assets out of bankruptcy.

 

They might be able to run KONA reasonably well in it's scaled down form.

 

The whole thing was kind of crazy.  KONA was probably a decent chain when it had a dozen or so locations...but they pursued growth at any cost and wrecked it all.

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