Is Rick’s Cabaret a Value Stock? (RICK)

Not all public companies are belt and suspenders outfits.  Some are also very unique models with little to no competition.  Rick’s Cabaret International, Inc. (NASDAQ: RICK) is the largest gentlemen’s club owner and it is public. The company has shown through time that it can grow via acquisitions and in its same-stores, and in some cases it can offer value investors something worth a look as well despite having closed a Las Vegas location.  That being said, this one looks down and out if you look at today’s share prices and a chart going back to the pre-recession highs.

Shares are currently around $10.22 and the 52-week range is $6.06 to $11.45 and the market cap is now only $99 million. In late-2007 and early 2008, Rick’s hit a high north of $25.00 and even after the crash its shares got back to almost $15.00 in early 2010.  They have just never gotten back there.

This morning came an award from Zacks Investment Research, where the stock was called The Value Stock of the Day.  As noted:

• Sales rose 12.5% to $21.7 million from $19.3 million.
• December was strong, rising 18.5%, coming off of modest gains in October and November.
• Same store sales rose 6.7% to $20.6 million.

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