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Amun Ra

Amun Ra

Earnings today in Dave & Busters. Picked up 1,000 shares for the heck of it. I may buy some put options near close to hedge. Hopefully they get a lot cheaper by 3:40 pm.

The coronavirus hit them pretty hard, but it all seems to be priced in now.
 
Amun Ra said:
Earnings today in Dave & Busters. Picked up 1,000 shares for the heck of it. I may buy some put options near close to hedge. Hopefully they get a lot cheaper by 3:40 pm.

The coronavirus hit them pretty hard, but it all seems to be priced in now.
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I don't think it's fully priced in just yet. They only have slightly more than a 100 locations and they are just starting to reopen. As for takeout. They don't have the best food so who knows how earnings will be. This may be a play for next quarter earning but I'm not to sure on this one. I guess investors won't care anyways since all these reopening stocks have been high flying the last 2 months.
 
"Dave & Buster's fiscal first-quarter results are likely to reflect the negative impact of the coronavirus pandemic. Moreover, dismal traffic and comparable sales are likely to have weighed on the company’s performance in the quarter to be reported.

High operational costs may get reflected on the to-be-reported quarter’s results. Further, the company’s non-franchised model makes it susceptible to steep expenses. Notably, all the restaurants are owned and operated by Dave & Buster’s instead of signing franchise agreements. This puts the burden of costs on the same. Consequently, the company is solely responsible for expenses of operating the business."

-Zacks
 
SunTrader said:
"Dave & Buster's fiscal first-quarter results are likely to reflect the negative impact of the coronavirus pandemic. Moreover, dismal traffic and comparable sales are likely to have weighed on the company’s performance in the quarter to be reported.

High operational costs may get reflected on the to-be-reported quarter’s results. Further, the company’s non-franchised model makes it susceptible to steep expenses. Notably, all the restaurants are owned and operated by Dave & Buster’s instead of signing franchise agreements. This puts the burden of costs on the same. Consequently, the company is solely responsible for expenses of operating the business."

-Zacks
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They already diluted the shares in may to pay for the expenses. $110m raised in secondary offering . There will be no new debt.
 
Wish I would've put my hedge in place earlier. When I first posted, I could've bought the $15 puts at $1.10. Now I had to run to buy the $14.50s for $1.20. Trying to save $100-$200 on time premiums cost me an extra $600. Yuck.
 
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