Author Topic: RICK - RCI Hospitality  (Read 18960 times)

Foreign Tuffett

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Re: RICK - RCI Hospitality
« Reply #60 on: May 10, 2019, 02:43:24 PM »
I am shocked and flabbergasted at this development! Who would have ever thought thot that this could happen to such an upstanding company!? Clearly management is right to blame those devious short sellers!



JayGatsby

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Re: RICK - RCI Hospitality
« Reply #61 on: May 22, 2019, 11:58:15 AM »
Getting crazy cheap on a FCF yield basis. Down about 50%. The allegations in the short report were all related party / using the company as a piggy bank type stuff, so all factored into cash flow. Delay is odd nonetheless.

johnny

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Re: RICK - RCI Hospitality
« Reply #62 on: May 23, 2019, 12:57:14 AM »
The problem isn't the exact bad acts the report revealed--its that it speaks to his 1) character and 2) clumsiness when doing naughty stuff.

This is a business with more-than-normal opportunities to do naughty things. You don't know what is going on in the clubs, you don't know what systems are in place to prevent the bouncers from selling drugs to the girls, to prevent the girls from selling sex to the customers, to prevent the managers from coercing sex from the girls, to prevent the girls from using sex to extort the managers, to prevent clubs from trying to find wiggle-room around various beverage control issues, etc. You have to hope that the guy at the top setting the agenda recognizes all of these problems AND is capable of designing systems that control for these risks.

The problem isn't that he stole shareholder cash to pay his kid's tuition--the problem is that he was stupid enough to get owned by some Seeking Alpha incel over it. Close your eyes and imagine what sort of deranged horny boomer texts he and his managers are sending to the strippers and try to figure out the correct discount to apply.

DooDiligence

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Re: RICK - RCI Hospitality
« Reply #63 on: May 23, 2019, 04:37:17 AM »
The problem isn't the exact bad acts the report revealed--its that it speaks to his 1) character and 2) clumsiness when doing naughty stuff.

This is a business with more-than-normal opportunities to do naughty things. You don't know what is going on in the clubs, you don't know what systems are in place to prevent the bouncers from selling drugs to the girls, to prevent the girls from selling sex to the customers, to prevent the managers from coercing sex from the girls, to prevent the girls from using sex to extort the managers, to prevent clubs from trying to find wiggle-room around various beverage control issues, etc. You have to hope that the guy at the top setting the agenda recognizes all of these problems AND is capable of designing systems that control for these risks.

The problem isn't that he stole shareholder cash to pay his kid's tuition--the problem is that he was stupid enough to get owned by some Seeking Alpha incel over it. Close your eyes and imagine what sort of deranged horny boomer texts he and his managers are sending to the strippers and try to figure out the correct discount to apply.

Excellent read (that should cool anyones jets on this issue.)

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So could a chatty cocktail waitress but I doubt itíd be worth the time to find out.
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Foreign Tuffett

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Re: RICK - RCI Hospitality
« Reply #64 on: July 18, 2019, 03:47:05 PM »
BDO has resigned as RICK's auditor:

"BDO notified RCIís Board of Directors on July 12, 2019 that, due to certain concerns relating to the procedural aspects of the review process of the Special Committee and Special Counsel, it was providing notice to the Board in accordance with Section 10A(b)(2) of the Exchange Act and resigning effective immediately. Specifically, BDO stated that it believes the company has not performed sufficient investigatory procedures and has not taken timely and appropriate remedial action in response to certain deficiencies that BDO thinks exist in the way the internal review has been conducted, including: (i) undue restriction on the scope of the internal review; (ii) failure to initiate certain forensic procedures; (iii) refusal to provide BDO access to pertinent interview summaries and other documents; (iv) lack of assessment as to the impact of the matters identified to date on existing and future regulatory filings, including financial statements related footnotes; and (v) restrictions, based on privilege, hindering BDOís ability to properly shadow and evaluate the adequacy of the internal review."

Foreign Tuffett

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Re: RICK - RCI Hospitality
« Reply #65 on: July 18, 2019, 03:59:08 PM »
Can RICK's accounting issues be fixed with glitter, pasties, and clear stiletto heels? The world wonders...

Jurgis

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Re: RICK - RCI Hospitality
« Reply #66 on: July 18, 2019, 04:29:53 PM »
(vi) undue restrictions of access to the company's employees  :-*
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Drokos

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Re: RICK - RCI Hospitality
« Reply #67 on: July 18, 2019, 06:52:08 PM »
Unfortunately there are no real investors (all insiders, retail investors, and index funds) in the stock, so no one is going to force management and the board to clean up their act. Will be interesting to see what the internal review says, but I expect the board to protect management (and themselves) and not disclose anything major.

JayGatsby

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Re: RICK - RCI Hospitality
« Reply #68 on: July 20, 2019, 11:57:30 PM »
hahaha, fair assessment johnny.