LUB (Lubys) moved up 3.83% today in this dismal market reporting more negative private sector job data.
Positives:
Total debt reduction from 2005 compared to the TTM
28% owned by insiders
Only 53% of float held by institutions
Recent successful bidder for 61 million in the bankruptcy auction for Fuddruckers
Added 201 locations with Fuddruckers raising the store count to 297 from 96
138 new franchised owned Fuddruckers potential generating enough to amortize the additional debt to purchase Fuddruckers
Recent strong quarterly results posting profits of 3 cents on sales of 57.20 million all this before the block buster bankruptcy auction win for Fuddruckers
Large real estate holdings before Fuddruckers recorded on the book at a large discount to market value. 96 owned locations
Incorporated in 1959 and many of the properties were recorded on the books over 15 years ago.
Price to book of .70 improved from the 2006 value of 1.7
Price to sales of .40 versus .90 for 2006
Negatives:
Economy continues to worsen
Food costs rise
Unable to turnaround existing Lubys restaurants and Fuddruckers
The turnaround is far from certain and the price has been held back until positive results are visible
I have a position in LUB
