Dr. Hugh Akston
Hedge fund manager, long/short equity, value

Ruby Tuesday: A Ruby In The Rough

"The reports of my death have been greatly exaggerated."

-Mark Twain

Ruby Tuesday (NYSE:RT) has been wrongly maligned as a broken concept by Wall Street snobs that have never stepped foot in an actual Ruby Tuesday restaurant. Our research concludes the concept is viable and operational performance is stabilizing. The current stock price ignores the hidden value of the company-owned real estate assets (45% of locations). We estimate the net value of the real estate assets alone is worth $6.15 per share. Investors can buy the stock today at a discount to the underlying real estate value and get the operating business and brand equity for free.

A new management team was put in place by activist investor,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details