Ricks’s Cabaret (Nasdaq:RICK) is about to reveal the latest earnings results. A very small company with a market cap just over $100 million. For those of you who do not realize it Rick’s Cabaret operates multiple venues offering adult entertainment with food and beverage.
The Bear Case Scenario will be governance compliance with local by-laws and moral standards. The community standards move about in difficult to predict fashions. Will Rick’s be able to continue satisfying the local city fathers. secondly there is a lot of cash involved. This requires some very clever management which has beaten many an operator. Temptations are high. The mafia has their ways of control which are not available to publicly traded companies.
Good Luck with that one.
George Gutowski writes from a caveat emptor perspective.