longterminvestor Posted March 13, 2020 Share Posted March 13, 2020 Complicated answer on multiple fronts. Specifically for RICK's the overwhelming majority of "entertainers" would be defined as "independent contractors" ergo not defined as employees and would not be eligible for benefits under standard workers compensation policy. With regard to a "client" suing RICKS for contracting disease in the establishment, I would bet heavy money their General Liability policy has a "communicable disease exclusion" therefor no coverage. On a macro level, Workers Compensation benefits are regulated by state individually. Each state will issue their own orders on how to handle employees contracting COVID-19 disease in work place. Argument for not paying claim, outbreak is widespread and is contractible in ordinary course of life. That could be political suicide for insurance companies and maybe easier just to pay claims and be done with it. Some states have already issued orders for insurance carriers to pay work comp claims for hospital/healthcare employees contracting disease in course of work. Link to comment Share on other sites More sharing options...
Nell-e Posted March 13, 2020 Share Posted March 13, 2020 I'm just saying that more people die of herpes encephalitis than coronavirus-contracted-from-US-strip-clubs, bro. I'm just saying it's perception that matters and COV19 will drive away more customers than herpes encephalitis. Link to comment Share on other sites More sharing options...
johnny Posted March 13, 2020 Share Posted March 13, 2020 I'm kidding dude, I'm a long time hater on this company and I just bumped the thread to have some fun. I cannot believe that some of the people here were buying this thing at 10x peak earnings with all of the serious ethical/moral/legal problems both inherent in the business model and specific to the personalities at the top. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted March 14, 2020 Share Posted March 14, 2020 I'm kidding dude, I'm a long time hater on this company and I just bumped the thread to have some fun. I cannot believe that some of the people here were buying this thing at 10x peak earnings with all of the serious ethical/moral/legal problems both inherent in the business model and specific to the personalities at the top. What I think happened: Retail investors + an aggressive IR outreach campaign* + a belief that CEO had found capital allocation "religion" + a lack of awareness of management's shenanigans. Presumably no one buying this knew about the Houston single family houses or the aircraft fetish * Maybe the only company I have ever contacted that immediately emailed me back and, unprompted, wanted to set up a phone call. Link to comment Share on other sites More sharing options...
Gregmal Posted March 14, 2020 Share Posted March 14, 2020 Or...this is like....just another example of.... a company that is somewhat(actually entirely) controversial and has some real issues falling when the market gets kerplunked in a big way, and all the long time haters who watched it run up, multi bagger style, get to have their 15 minutes of "I was right all along!". Yawn Link to comment Share on other sites More sharing options...
Spekulatius Posted March 14, 2020 Share Posted March 14, 2020 I'm kidding dude, I'm a long time hater on this company and I just bumped the thread to have some fun. I cannot believe that some of the people here were buying this thing at 10x peak earnings with all of the serious ethical/moral/legal problems both inherent in the business model and specific to the personalities at the top. What I think happened: Retail investors + an aggressive IR outreach campaign* + a belief that CEO had found capital allocation "religion" + a lack of awareness of management's shenanigans. Presumably no one buying this knew about the Houston single family houses or the aircraft fetish * Maybe the only company I have ever contacted that immediately emailed me back and, unprompted, wanted to set up a phone call. Got to watch the bouncer and the pimp closely if you own a titty bar. Link to comment Share on other sites More sharing options...
DooDiligence Posted March 14, 2020 Share Posted March 14, 2020 Even I couldn't get past the smell on this one. Link to comment Share on other sites More sharing options...
Gregmal Posted May 3, 2020 Share Posted May 3, 2020 https://nypost.com/2020/05/02/texas-strip-club-wins-court-order-letting-it-open-with-restaurants/ LOL Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted May 15, 2020 Share Posted May 15, 2020 COB&F's favorite concentrated activist fund ADW Capital the proud owner of 175,400 RICK shares as of 3/31 https://www.sec.gov/Archives/edgar/data/1745214/000138713120004810/xslForm13F_X01/infotable.xml I suppose management's history of capital allocation shenanigans and the share ownership structure means this could be an activist target BUT Langan and his buddies have been running the company as their personal fiefdom for over 20 years. Given that, and the....exotic nature of the business, I can't imagine trying to replace management. For better or worse Langan and friends are the only ones who know where all the bodies are buried. Link to comment Share on other sites More sharing options...
Jurgis Posted May 16, 2020 Share Posted May 16, 2020 For better or worse Langan and friends are the only ones who know where all the bodies are buried. I thought all the bodies were actually in the open. 8) Link to comment Share on other sites More sharing options...
capitalg Posted May 16, 2020 Share Posted May 16, 2020 COB&F's favorite concentrated activist fund ADW Capital the proud owner of 175,400 RICK shares as of 3/31 https://www.sec.gov/Archives/edgar/data/1745214/000138713120004810/xslForm13F_X01/infotable.xml I suppose management's history of capital allocation shenanigans and the share ownership structure means this could be an activist target BUT Langan and his buddies have been running the company as their personal fiefdom for over 20 years. Given that, and the....exotic nature of the business, I can't imagine trying to replace management. For better or worse Langan and friends are the only ones who know where all the bodies are buried. Interesting that the ADW 13F filing down to two positions worth about $3.1M. I'm not sure I fully understand 13F reporting requirements (although I believe certain investments - like foreign securities - may be excluded), but this is substantially smaller than what they had reported in the past. Link to comment Share on other sites More sharing options...
johnny Posted July 9, 2020 Share Posted July 9, 2020 You'll never believe what happened to this manager By the way, has anybody figured out how to model the risk you're accepting when your store managers are openly posting about rawdogging the staff? Link to comment Share on other sites More sharing options...
whatdadil9 Posted October 7, 2020 Share Posted October 7, 2020 What happened to him? I heard he’s having a pretty good 2020 and Bloomberg is reporting ~150 mm doesn’t include pinks, foreigns, options/swaps, cash or shorts FWIW. Link to comment Share on other sites More sharing options...
Gregmal Posted December 17, 2020 Share Posted December 17, 2020 Or...this is like....just another example of.... a company that is somewhat(actually entirely) controversial and has some real issues falling when the market gets kerplunked in a big way, and all the long time haters who watched it run up, multi bagger style, get to have their 15 minutes of "I was right all along!". Yawn Eric continues to execute. ATHs and counting. and STILL not that hard to make the case that its cheap. Something also to be said about a strip club operator that can get through a pandemic lol. Link to comment Share on other sites More sharing options...
nyctic Posted December 18, 2020 Share Posted December 18, 2020 Eric continues to execute. ATHs and counting. and STILL not that hard to make the case that its cheap. Something also to be said about a strip club operator that can get through a pandemic lol. Most important thing is not to be a strip club operator. In the summer when it was getting ugly, they were cash flow positive thanks to $5.4 million in PPP loans. Eric basically admits it was looking bleak. I know, I know, government largesse is part of the game, so more credit to them, but you have to acknowledge a few different policy choices and the haters could've been right. Their core business is still suffering, after all, and major locations still getting shut down. Of course, essential services like strip clubs are not eligible for PPP loans but those restaurants (and whatever 80s dance lounge / swingers lounge / Ricky Bobby ripoff gong shows they're still running) are. Between that and the multi-year improving trend on financing due to access to bank commercial loans thanks to the restaurants, you really have to give some serious mastermind cred to mgmt for raw-dog deworsifying from a statutory wide-moated industry into restaurants that serve beer. I wouldn't have bought it ahead of time. Not only that, but one of the key attributes to those restaurants is to have giant raucous outdoor seating areas complementing the cavernous dystopian indoor seating.... which of course during covid survives nicely the indoor occupancy restrictions hamstringing the competition. Reading between the lines I wonder how much this is spiking their operating metrics to which I would imply a correction come the lifting of restrictions except it'll probably drive a chunk of their smaller competition out of business and they win again. Link to comment Share on other sites More sharing options...
Gregmal Posted December 18, 2020 Share Posted December 18, 2020 Thats definitely accurate; I think Bombshells has been a tremendous surprise albeit up against a very low bar. The effect you describe is probably true to an extent, but there is also a yin and yang thing going on here. With the reopening you might see some waning on the restaurant side, but the bread and butter is the clubs and the margin that come with it and that will undoubtedly accelerate. There is also some merit to this being yet another example of luck/solid management, being heavily concentrated location wise in a business friendly state like Texas. Ive got some shares(not a huge position though) but Ive found the real gravy train here is just quietly shorting short/mid duration OTM puts. If the shorts want to miss the forest for the trees, give em rope. Eventually they'll be wandering alone amongst all those tress, with a rope, and, well.....they'll have some options. Link to comment Share on other sites More sharing options...
DooDiligence Posted March 5, 2021 Share Posted March 5, 2021 The tops sure came off quick. Link to comment Share on other sites More sharing options...
Spekulatius Posted March 5, 2021 Share Posted March 5, 2021 The tops sure came off quick. A Titti bar chain and Fintwit favorite trading for 5x sales. What could go wrong? Link to comment Share on other sites More sharing options...
DooDiligence Posted March 5, 2021 Share Posted March 5, 2021 The tops sure came off quick. A Titti bar chain and Fintwit favorite trading for 5x sales. What could go wrong? I haven’t been in an American topless bar since my 20’s or early 30’s. I hear it’s a great way to lose money while pursuing an obsession. Congrats to all those swaggy pimps who got in before the doors opened here. Link to comment Share on other sites More sharing options...
DooDiligence Posted May 20, 2021 Share Posted May 20, 2021 Larry Flints ghost. RICK needs to get on the ball. https://nypost.com/2021/05/18/hustler-strip-club-in-las-vegas-offering-covid-19-vaccine/ Link to comment Share on other sites More sharing options...
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