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Mark Krieger

 
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  • Luby's (LUB) CEO Christopher Pappas on Q1 2015 Results - Earnings Call Transcript [View article]
    Watch for an insider buy to pop up on the radar very soon. It will likely be from the CEO..He seems to be a buyer every few years, especially on dips.

    http://bit.ly/11BYz08
    Dec 18, 2014. 09:26 PM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    hmmm....not sure if I should take my lumps and move down the road. I just hate taking losses. I guess I got too emotional about this stock- boy! is that an understatement!

    One thing for sure, my new found negativity could be a sign that we are at an important turning point. I remember giving up on many stocks at their exact lows, only to be tortured as they rallied with vengeance as soon as I sold them.

    All I can say is UGH!!!!!!!!!!!!!!!!!!!...
    Dec 18, 2014. 07:32 PM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    "path towards long-term shareholder value"? How about "path towards short term value" instead? After all, current management has been at the helm nearly 14 years and we haven't seen any shareholder value created yet. How can we expect to wait another 14 years for something good? I'm not a young man anymore!

    LET'S have a sense of urgency here, to stop the bleeding!
    Dec 18, 2014. 12:54 PM | 1 Like Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    george1144: How could management's interests not be aligned with shareholders? The Pappas brothers own $45 million worth of stock. That is a ton of skin in the game!!!!! You bet they care about the share price!
    Dec 18, 2014. 12:41 PM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    this is what CEO Pappas closed the conference call with:

    "Finally, let me just say as a shareholder and a large shareholder I am not pleased with our current share value. However I continue to have confidence in our strategy and path towards long-term shareholder value."


    http://seekingalpha.co...
    Dec 18, 2014. 12:36 PM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    One other issue I neglected to raise. Since the Board and management is so entrenched together, there is very little chance a activist shareholder or potential suitor could effect any change- management has the votes to stymie such action. It happened 7 years ago, when Ramius Capital launched a bid for change via a proxy fight-Luby's management won! http://bit.ly/1wPswV1
    Dec 18, 2014. 10:58 AM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    Will be listening to the conference call which starts in about 20 minutes. One possible outcome, Sidoti analyst James Fronda finally upgrades. He is always the only one on the CC, that actually asks questions to the CEO and CFO.
    Dec 18, 2014. 10:41 AM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    I am not going to lie. I do find it quite perplexing how a company can generate $87 million in sales and still end up losing money, especially when considering: (1) they only have to pay rent on 1/2 their locations (2) they receive royalty fees on 110 franchisee locations (practically pure profit) (3) management has been in the business over 50 years, and also runs their own private chain of very profitable restaurants.
    Dec 18, 2014. 10:13 AM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    the report was actually much better than you revealed. in fact, the stock rose 5%higher in extended hours trading yesterday. Some positive and negative details highlighted:

    (1) revenues rose 1.1% despite the company's most challenging season (2) .2% same store sales increase at both Luby's cafeterias and Fuddruckers (3) Franchisee fees rose 6.7% from $1,500,000 to $1,600,000 (4) The company picked up two more culinary service contracts during the quarter and now service 26 locations. Sales rose 7% during the 1st quarter (4) they spent just $3.6 million in capital expenditures, but had $900,000 of extra expense for opening costs (5) There were reductions in certain cost centers-the G&A category saw a 50 basis point reduction while occupancy costs fell $100,000 from $4.7m to $4.6m.

    Some negatives: (a) depreciation expense rose $700,000 to $5.1 million (b) cost of food jumped from 28.6% of sales to 29.2% (c)payroll costs climbed from 35.2% to 36.4% and other costs (maint/repair/utilites, adv.) rose from 18.9% to 19.6% (d) same store sales at the Cheeseburger in Paradise segment fell 6.7%

    The conference call ( in a couple hours) and the investor presentation (on the luby's website) could reveal more color and positive developments. Stay tuned.
    Dec 18, 2014. 07:32 AM | Likes Like |Link to Comment
  • Update: Luby's Earnings Blow It Again [View article]
    why mess with LUB? because how many other restaurant companies actually sell for below book value, just 33% of sales and own the real estate on over 1/2 of its locations?

    No too many. As matter of fact, none at all. This implies that LUBy's shares are inefficiently priced , and provide an opportunity to exploit this phenomenon.

    The fact is, this company is fixable and wall street is treating it like it is unfixable. Management also has plenty of skin in the game with a 33% ownership stake, so their best interests should be aligned with all shareholders. You know what Warren says, when it is raining gold, don't put out thimbles, put out buckets. Right now, it might not seem like the rain is gold, but visionary thinkers can see past the noise and recognize the value.
    Dec 18, 2014. 07:22 AM | Likes Like |Link to Comment
  • Luby's reports FQ1 earnings [View news story]
    Maybe we will get more color from tomorrow's conference call and the information contained in the 1st quarter Supplemental Investor material.
    Dec 17, 2014. 06:23 PM | 1 Like Like |Link to Comment
  • Luby's reports FQ1 earnings [View news story]
    not a bad report at all: (1) revenues rose 1.1% despite the company's most challenging season (2) .2% same store sales increase at both Luby's cafeterias and Fuddruckers (3) Franchisee fees rose 6.7% from $1,500,000 to $1,600,000 (4) The company picked up two more culinary service contracts during the quarter and now service 26 locations. Sales rose 7% during the 1st quarter (4) they spent just $3.6 million in capital expenditures, but had $900,000 of extra expense for opening costs (5) There were reductions in certain cost centers-the G&A category saw a 50 basis point reduction while occupancy costs fell $100,000 from $4.7 m to $4.6 m

    Some negatives: (a) depreciation expense rose $700,000 to $5.1 million (b) cost of food jumped from 28.6% of sales to 29.2% (c)payroll costs climbed from 35.2% to 36.4% and other costs (maint/repair/utilites, adv.) rose from 18.9% to 19.6% (d) same store sales at the Cheeseburger in Paradise segment fell 6.7%
    Dec 17, 2014. 05:41 PM | 1 Like Like |Link to Comment
  • Luby's: I Can't Think Of A Single Reason To Buy This [View article]
    boring value investor: entrenched management/board is a problem. However if that wasn't the case, it wouldn't be a value stock any more. It would trade at twice the price it does now.

    Translation: the fact that management is entrenched, provides opportunity. It is something that can be changed/fixed and when that happens, the stock could easily double.
    Dec 17, 2014. 03:13 PM | Likes Like |Link to Comment
  • Ford - Backing Up The Truck On The Clueless Downgrade [View article]
    the downgrade was nothing but a "bash and buy" tactic, that most of us (who have been around the block a few times) can see right through.
    Dec 17, 2014. 10:03 AM | 15 Likes Like |Link to Comment
  • Luby's: I Can't Think Of A Single Reason To Buy This [View article]
    management warned that it will sustain commodity cost pressures in certain categories, but they also indicated that they plan to implement modest price increases. So the two (higher commodity prices and increased menu prices) should effectively offset each other.

    Store level initiatives aimed at enhancing efficiency should also begin kicking in aiding the bottom line.

    The company hopes to maintain positive same store sales trends on its luby's cafeteria division, while turning its Fudd's division negative SSS in fiscal year 2014, to a positive number in its current 2015 fiscal year.
    Dec 17, 2014. 09:06 AM | Likes Like |Link to Comment
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