Chris Fernandez

Things Turning Around at Rick’s Cabaret: Time to Buy?

Hey Vegas,

It's a dog eat dog world out there, and Rick's just stepped up their game to compete with the others doing the same.

As long as the bottom line stays fresh, meaning the company keeps throwing off gobs of free cash flow, I could care less how they manufacture their revenues.

You can't lie about your cash flow, that's the bottom line...advertise too much, and spend too much on it and you'll get crushed in your quarterly results.

I'm keeping an eye on things, but it was time for Rick's to compete on a level playing field with the other "marketing" that was being done out there.

Chris

Rick's and Netflix: A Time to Buy, A Time to Short?

Missing_Link,

I agree 100%...I shorted NFLX today as well, and in fact since SA posts my stuff a day later, if you are interested in following my picks live, you can get real time updates by subscribing to my Twitter Feed here:

twitter.com/PeakStocks

Thanks for reading, and happy trading!

Chris

Rick's and Netflix: A Time to Buy, A Time to Short?

Hey Dicki,

For every trade there is a buyer and a seller...both think they are right, and in the short term, both can be right.

I am looking at short term only.

NFLX will most likely fall some here, we can make a quick 5-10% on our money, and get out. My stop loss is about 5%, so the risk/reward is vastly in our favor all things considered.

Indeed time will tell!

Chris

Rick’s Earnings Preview: Time to Jump Ship?

Hey Mysteryman,

You make some good points, and I agree that Rick's has some trouble.

As the company is a very small portion of my portfolio, it's not that big of a risk to me, but as for others out there, I would advise to keeping your shares at a very low rate relative to your overall port.

Rick's has performed well in the past in terms of free cash flow generation, and operational structure, but they went overboard with their acquisitions, and got a little happy with that.

Now they are paying the price, and I welcome them closing their clubs, and streamlining operations.

Chris

Rick's to Open Nude Bar, GeoEye Helps Catch Pirates Off Kenya

Hey Collins,

Sure, no problem, and thanks for asking.

My rationale is based on several things: talk that I have been hearing from analysts, the street, message boards, intuition, and GeoEye's own press releases.

Put them all together, and I get a distinct sense that GeoEye hasn't even fixed their problems yet of the imagery, let alone asked for it to be certified.

Therefore, since they haven't even addressed the software problems full force yet, once they do, they will still need to get approval for the imagery.

All that being said, I see a substantial delay taking place, above and beyond the present delay, which would put us already into the middle of Q1.

I like to take a worst-case scenario approach, thus I would be happy if the imagery were certified by the end of Q1, rather than not at all.

All this is based on speculation, and not fact, so please do your own digging around to verify the facts to your liking, but as far as I can tell, this thing might take awhile.

Chris

Rick’s: Still Entertaining or Ready to Slide?

I think what it all boils down to at this point, is that we're all going to be waiting and listening in to Rick's conference call on Monday to see what our next move should be in regards to the stock.

I am comfortable with my 1/4 position right now, the question is, should I be buying more based on simply valuation and cash flow generation?

That remains to be seen.

Stay tuned.

Chris

Rick’s: Still Entertaining or Ready to Slide?

Hey guys,

That's why I have only recommended a 1/4 purchase for now. I want to hear the CEO's comments, and how the last fiscal year actually turned out, specifically the cash flow and free cash flow numbers.

I too think that the stock is perennially undervalued, but it is likely to remain so even if the market returns, because of its "sin" stock status.

Too bad people don't feel equally as ashamed of owning oil, coal, or other related stocks...

Chris

Monthly Portfolio Assessment; GeoEye and AAR Remain Strong Buys

What's Wrong.

I did find that a little strange, but the stock price is extremely low at this point, even after today's rise in price, and I would still recommend it as my #1 pick.

Chris

Monthly Portfolio Assessment; GeoEye and AAR Remain Strong Buys

Yes, I think that Rick's is much better than Playboy for more reasons than I have time to go into here.

Skip PLA, buy RICK.

Chris

Rick's Cabaret and eHealth Bucking the Trend

Hey Paul,

Nice rebuttal, and information.

I would have gotten around to that, but my recent post was not intended to cover every negative aspect of the club or downside.

Thanks again,
Chris

Fernandez: Top 5 Picks for November

Umm, et. al,

You are most welcome...remember that my picks are meant to be held long term, so don't expect quick turns in the stocks I recommend, often they are in downturns, and that's why they are attractive to me.

Be prepared to lose up to 50% of your investment in any one of my picks at any time...that's just the vagaries of small and micro cap stocks.

Learn more about my investing style on my website and the risks you should know before buying any stock I recommend:

peakstocks.com/investi...

- Oh as for the question on ZIXI that I didn't answer: the stock price was too high for the valuation that I thought was fair for ZIXCorp at the time.

It has since gotten more reasonable, but still isn't what I would call cheap.

I am in the process of doing further diligence on it, and we'll see if it meets my criteria for inclusion.

Thanks for reading guys,
Chris

Fernandez: Top 5 Picks for November

Hey Tigers,

Yea I was aware of that, this is standard litigation that comes out of the woordwork when someone wants to cry to their mommy that they lose money in one of their stock picks.

It isn't material at this point in time because it is not likely to go anywhere, unless AuthenTec's management did indeed materially mislead investors.

Chris

5 Possible Picks in a Tumultuous Market

I do not follow energy stocks.

It is outside my scope of knowledge.

Sorry about that.

Chris