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Parsad

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Chanticleer Holdings Announces Acquisition of Just Fresh Restaurants

 

"it has acquired a 51% stake in JF Restaurants, LLC and JF Franchising Systems, LLC, owners of the Charlotte-based Just Fresh Restaurant chain. The Just Fresh restaurant chain first opened in 1994 and currently operates 5 company owned locations throughout North Carolina ... "I look forward to working with Shelly Curtin and her great team, as well as the current owners who remain as minority partners moving forward," Mr. Pruitt added."

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Chanticleer Holdings Announces Acquisition of Just Fresh Restaurants

 

"it has acquired a 51% stake in JF Restaurants, LLC and JF Franchising Systems, LLC, owners of the Charlotte-based Just Fresh Restaurant chain. The Just Fresh restaurant chain first opened in 1994 and currently operates 5 company owned locations throughout North Carolina ... "I look forward to working with Shelly Curtin and her great team, as well as the current owners who remain as minority partners moving forward," Mr. Pruitt added."

 

Never been a fan. But with the prices they charge, someone must be making a tidy profit.

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Chanticleer Holdings Announces Investment in Beacher's Madhouse in Las Vegas, Nevada

 

"Chanticleer Holdings, Inc. announced today that is has made a $500,000 investment in the new Beacher's Madhouse to be located in Las Vegas, Nevada...

 

As part of the investment into Beacher's Madhouse, Chanticleer received the right to participate in the financing of up to 25% offered to third party investors in any new Beacher's Madhouse location as well as the exclusive rights to the United Kingdom, South Africa and Australia."

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A lot of activity recently from Chanticleer(Just Fresh, American Roadside, new Hooters), it has been fun watching and I hope they succeed.

 

Today, they announced an investment in "Beacher's Madhouse" opening in Las Vegas. Any boardmembers been to a Beacher Madhouse show? It looks like a crazy event.

 

As far as I can tell, they invested $500,000 plus gave around 50,000 shares and in return get the option to purchase into new "Beacher's Madhouses" that may or may not open.

 

http://www.sec.gov/Archives/edgar/data/1106838/000114420413065009/v361932_ex99-1.htm

 

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They have been busy lately.  Anyone know the size of Chanticleer Holdings's investment in NCNE?

 

Appalachian Mountain Brewery to Acquire North Carolina Natural Energy

 

"Notably, one of NCNE's shareholders, Chanticleer Holdings, Inc. (Nasdaq:HOTR) and its CEO Mike Pruitt, played a key advisory role in facilitating this combination. "Sean and his team have created international award-winning craft beers that are gaining brand recognition throughout our region. We look forward to showcasing AMB's craft beers in our restaurants and assisting in its regional distribution. Our Company will continue to assist AMB in its growth and expansion to becoming a global brand," Mike Pruitt commented.

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Mike's well-connected and is very busy, but the only thing that matters long-term is creation of value relative to the amount of dilution happening.  Last I checked, this was still not happening if you looked at the bottom line.  I hope it happens at some point for shareholders, because busy for the sake of being busy, isn't usually the way to go.  All these acquisitions, but is it actually generating positive cash flow?  Are they going to be profitable at some point?  Cheers! 

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Mike's well-connected and is very busy, but the only thing that matters long-term is creation of value relative to the amount of dilution happening.  Last I checked, this was still not happening if you looked at the bottom line.  I hope it happens at some point for shareholders, because busy for the sake of being busy, isn't usually the way to go.  All these acquisitions, but is it actually generating positive cash flow?  Are they going to be profitable at some point?  Cheers! 

 

The dilution is what concerns me the most. Not only all the shares they are issuing, but there are a lot of $5 and $7 warrants around as well, which means even more dilution if the stock gets above those levels. I have about a 5% position and also have some of those warrants. It is certainly an interesting company to follow.

 

 

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Excellent insight Parsad!

Do you think Mike has the right temperament?

He's buying all these call option concepts.

Mike was starved for capital for so long, I wonder if he's developed some sort of deal maker envy.

I wish I knew more about Robert Brooks.

http://en.wikipedia.org/wiki/Robert_H._Brooks

 

Well, I think Mike is probably one of the most creative guys I know when it comes to getting a deal done.  But if your business is not profitable or not creating value relative to the dilution for acquisitions, then you are going backwards.  We have not seen any substantial increase in net positive cash flows, no improvement in the balance sheet other than from all the cash brought in through share issues, and quarterly losses remain huge! 

 

We sold all of our stock earlier in the year once they got out of the asset management business, so that sucks for us since the market thinks things are improving and the stock is much higher.  It looks like they are aiming to grow their way to profitability and I'm not a fan of that type of thought process.  All the capex and risk in the businesses they own and are acquiring...why would anyone leave a business like asset management where there is no capex and little risk?  Just a mish-mash of businesses now with no real improvement in the bottom line.  Cheers!

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Another day another acquisition.  More shares issued.  More $5.50 & $7 warrants issued.  I'm really starting to wonder if he is acquiring good businesses that he thinks will eventually be accreditive or if he is just a serial acquirer. Like stamp collecting.

 

Chanticleer Holdings Signs Binding Letter of Intent to Acquire Spoon Bar & Kitchen

 

We'll see over time.  The only way to know is to see the financials of the companies he's acquiring.  It will eventually show in Chanticleer's financials as they file each quarter.  Cheers!

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http://m.dallas.eater.com/archives/2013/12/05/john-tesars-spoon-has-been-sold-but-what-does-it-mean.php

 

A little bit more color on today's transaction. I think there is room for a fast-casual seafood chain.

Boneheads, in Charlotte and Atlanta, is an awesome concept. If HOTR can do something similar,I think they could do well.

 

With all these moving parts though and the stock's run up this year, I took a little off the table.

 

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  • 4 weeks later...
  • 2 months later...

Up 20% today. I wonder why. Unusually high volume. No news.

 

Yes huge volume. Someone just decided to buy a lot of shares.    I was thinking about adding under $4 recently and decided I didn't want to allocate any more to this.  It's already a 5% position I don't like holding more than that in a company this size.

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Maybe Biglari is buying. Substantial overlap / synergy between Maxim and Hooters skeezy clientele.

 

There's nothing at EnhanceHooters.com yet.

 

Shouldn't that be "EnhancingHooters.com" or "EnhancedHooters.com"?  ;D  Cheers!

 

That's what I was thinking.  When I was posting that before I was half expecting it to lead to some sleazy plastic surgeon's website offering a 2 for 1 special.

 

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  • 4 weeks later...

From 10K:

"Cash requirements and capital expenditures:

In 2014, we expect to open or acquire one restaurant in each of the following countries or continents – Brazil, Europe and South Africa, and two restaurants in Australia. The Company expects the total cash requirements for these restaurants to be approximately $5.0 million.

In addition, we expect general and administrative expenses to be approximately $3.5-$4.0 million for 2014."

 

This company looks like it will be a money losing dilution machine for some time to come.

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From 10K:

"Cash requirements and capital expenditures:

In 2014, we expect to open or acquire one restaurant in each of the following countries or continents – Brazil, Europe and South Africa, and two restaurants in Australia. The Company expects the total cash requirements for these restaurants to be approximately $5.0 million.

In addition, we expect general and administrative expenses to be approximately $3.5-$4.0 million for 2014."

 

This company looks like it will be a money losing dilution machine for some time to come.

 

I have no idea what Mike is doing now!  The company seems to be growing at any cost, regardless of dilution, profitability or any rational plan.  We sold our shares after he sold the asset management business. 

 

I have no idea what is keeping the stock afloat, because the financials get uglier every year and the number of shares outstanding is ballooning!  Crazy what has happened.  Cheers!

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