HOTR - Chanticleer Holdings

[rkbabang]

They have been busy lately.  Anyone know the size of Chanticleer Holdings's investment in NCNE?

Appalachian Mountain Brewery to Acquire North Carolina Natural Energy

"Notably, one of NCNE's shareholders, Chanticleer Holdings, Inc. (Nasdaq:HOTR) and its CEO Mike Pruitt, played a key advisory role in facilitating this combination. "Sean and his team have created international award-winning craft beers that are gaining brand recognition throughout our region. We look forward to showcasing AMB's craft beers in our restaurants and assisting in its regional distribution. Our Company will continue to assist AMB in its growth and expansion to becoming a global brand," Mike Pruitt commented.

[OracleofCarolina]

their last 10-Q says they owned 100,000,000 shares of NCNE(less than 1%) valued at $1500, yes $1500

http://www.sec.gov/Archives/edgar/data/1106838/000114420413062222/v360108_10q.htm

[Parsad]

Mike's well-connected and is very busy, but the only thing that matters long-term is creation of value relative to the amount of dilution happening.  Last I checked, this was still not happening if you looked at the bottom line.  I hope it happens at some point for shareholders, because busy for the sake of being busy, isn't usually the way to go.  All these acquisitions, but is it actually generating positive cash flow?  Are they going to be profitable at some point?  Cheers! 

[rkbabang]

Mike's well-connected and is very busy, but the only thing that matters long-term is creation of value relative to the amount of dilution happening.  Last I checked, this was still not happening if you looked at the bottom line.  I hope it happens at some point for shareholders, because busy for the sake of being busy, isn't usually the way to go.  All these acquisitions, but is it actually generating positive cash flow?  Are they going to be profitable at some point?  Cheers! 

The dilution is what concerns me the most. Not only all the shares they are issuing, but there are a lot of $5 and $7 warrants around as well, which means even more dilution if the stock gets above those levels. I have about a 5% position and also have some of those warrants. It is certainly an interesting company to follow.

[Carvel46]

Excellent insight Parsad!
Do you think Mike has the right temperament?
He's buying all these call option concepts.
Mike was starved for capital for so long, I wonder if he's developed some sort of deal maker envy.
I wish I knew more about Robert Brooks.
http://en.wikipedia.org/wiki/Robert_H._Brooks

[Parsad]

Excellent insight Parsad!
Do you think Mike has the right temperament?
He's buying all these call option concepts.
Mike was starved for capital for so long, I wonder if he's developed some sort of deal maker envy.
I wish I knew more about Robert Brooks.
http://en.wikipedia.org/wiki/Robert_H._Brooks

Well, I think Mike is probably one of the most creative guys I know when it comes to getting a deal done.  But if your business is not profitable or not creating value relative to the dilution for acquisitions, then you are going backwards.  We have not seen any substantial increase in net positive cash flows, no improvement in the balance sheet other than from all the cash brought in through share issues, and quarterly losses remain huge! 

We sold all of our stock earlier in the year once they got out of the asset management business, so that sucks for us since the market thinks things are improving and the stock is much higher.  It looks like they are aiming to grow their way to profitability and I'm not a fan of that type of thought process.  All the capex and risk in the businesses they own and are acquiring...why would anyone leave a business like asset management where there is no capex and little risk?  Just a mish-mash of businesses now with no real improvement in the bottom line.  Cheers!

[rkbabang]

Another day another acquisition.  More shares issued.  More $5.50 & $7 warrants issued.  I'm really starting to wonder if he is acquiring good businesses that he thinks will eventually be accreditive or if he is just a serial acquirer. Like stamp collecting.

Chanticleer Holdings Signs Binding Letter of Intent to Acquire Spoon Bar & Kitchen

[Parsad]

Another day another acquisition.  More shares issued.  More $5.50 & $7 warrants issued.  I'm really starting to wonder if he is acquiring good businesses that he thinks will eventually be accreditive or if he is just a serial acquirer. Like stamp collecting.

Chanticleer Holdings Signs Binding Letter of Intent to Acquire Spoon Bar & Kitchen

We'll see over time.  The only way to know is to see the financials of the companies he's acquiring.  It will eventually show in Chanticleer's financials as they file each quarter.  Cheers!

[OracleofCarolina]

http://m.dallas.eater.com/archives/2013/12/05/john-tesars-spoon-has-been-sold-but-what-does-it-mean.php

A little bit more color on today's transaction. I think there is room for a fast-casual seafood chain.
Boneheads, in Charlotte and Atlanta, is an awesome concept. If HOTR can do something similar,I think they could do well.

With all these moving parts though and the stock's run up this year, I took a little off the table.

[rkbabang]

Chanticleer acquiring 2 US Hooters Locations, one in Oregon and one in Washington State, and issuing another 600K shares and another 600K warrants.

http://ir.stockpr.com/chanticleerholdings/company-news/detail/774