dinohealth

Luby's: Short Squeeze on the Horizon?

I think Michael Cohen has it mostly right. I, too, am sticking with LUB for the long run. Interestingly, they just released their 4th Qr/FY2008 results, Although Michael may be wrong about the market effects in the short run, I think that they are doing a great job of weathering the current dismal marketplace. I particularly like the fact that they are going to manage aggressively/roll back their capital expense, while keeping properties available to exploit market opportunity when these doldrums are history. It demonstrates their management team's strategic flexibility and responsiveness to market conditions (and shareholder stakes). Also, at the current price, I think LUB is a sure long-term bet; May be a short-term hot investment also. .

Luby's: Serving Up Compelling Value

Great piece of analytic work. Agree, healthcare piece is a great market, "outside the box". Agree, conservative, frugal management, with a bold, expansive strategy. Low debt, good credit, product expert managment; all, point to sound investment potential.

Luby's F3Q08 (Qtr End 5/7/08) Earnings Call Transcript

I think Luby's is fortunate to have a seasoned, flexible executive team during this difficult economic time. I particularly like the way that they are diversifying their basic products; i.e. the healthcare food piece. The potential there is of enormous value, if it is aggressively pursued. Moreover, it is apparent that they are keeping a close watch on their capital expense strategy and its actual execution. Long-term, nothing will bite you harder than plant upgrades. Ι believe these fellows know how to hold and grow a business during an economic downer. That is very rare these days.