This is a quick update, as holders of Famous Dave's (NASDAQ:DAVE) awoke to some most excellent news. We have official confirmation, per Bloomberg, that Bill Martin and his firm, Raging Capital Management, a Princeton, New Jersey hedge fund with assets under management north of $700 million has joined me and the longs by taking a 537K position in Famous Dave's. Here is a great article written in ValueWalk chronicling Mr. Martin's track record, firm, and recent activism on the long side.
Enclosed below is the 12/31/2016 institutional holders list. We now know Raging Capital was the mysterious buyer of Pleasant Lake Capital's block of 500K shares, sold in late December 2016. This is most welcome news for me, as shares of Famous Dave's is my largest bet in my PA, at 16% of my investable assets. My cost basis is just under $6.50. When everyone told me that I was crazy and that Famous Dave's was going bankrupt, I kept adding, especially at the $5 level. If you haven't noticed, I tend to ignore the good opinions of others and pride myself in the dark art of independent thinking.
Also, because Yahoo Finance is often slow to update its information, as you can see, as of this morning, they hadn't updated the new information on its site. Therefore, I wanted to share this information and keep my readers abreast to developments affecting the company.
Finally, and I made this argument before, from a technical perspective, shares of Famous Dave's are above its 50 and 200 day moving averages after grinding sideways, trying to find a strong base at the $5 price level. I can't wait to see earnings in early March, as new CEO, Mike Lister is the perfect person for the role, at this "pivotal" juncture.
Disclosure: I am/we are long DAVE.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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