Will strip clubs flourish in this bad economy?

I appreciate teh reply and this is what obviously makes markets work becaseu i see very littel difference in teh business model between RICK's and VCGH. I only see a price difference in the Shares. You do have one thing correct though with VCGH.. I see a nice base forming. A foundation for movign higher. I would buy VCGH and continue to buy as it thrusts thru your 5.05 level and continues higher. I would guess that as times get tough economically speakign that guys will visit strip clubs more often t make themselves feel better. Anyway Rick's in my opinion is the same stock as VCGH.. except Rick's is over priced and RIck's get more news coverage on CNBC etc. Once again.. I always wonder why people like to buy overpriced stocks when they can buy teh exact same thing at a much lower price.. THanks for answering my question...

Why would you wait until it breaks above 5.05 to start buying... why not buy it now .. below that point? (assuming you are holding for a longer time frame of course) Anyway have a great day and thanks for the reply.. BUY VCGH..and feel great when you pay 10 bucks to pull mor cash out of the atm for that lap dance!!!
MOST IMPORTANTLY..IT IS MARRIAGE SEASON!!!! BACHELOR PARTIES AT STRIP CLUBS SHOULD HELP BOOST THE BOTTOM LINE.
I haven't looked into it .. but there quite possibly might be a seasonal trade here?
 
2 favorable scenarios for strip club stocks:

1. Economic slump forces strippers to tone down their expectations then lap dances go cheaper and songs last longer.

2. Economic slump forces strippers to do more to attract clients, then strip clubs go from touchy-no-no to touchy-ok.

The clientele flocks to these clubs to escape from their job or no-job stresses.
 
Quote from wutangfinancial:

the problem with a strip club, and this is mostly an ego thing-you're not an equity holder in the real money, which goes unreported. Meaning, drugs and prostitution. Stake yourself in a coke biz and get real money.
More...

Agree. $5 mill in revenues for 18 clubs? That's just over 1/4 mill per club. About $850 per day total revenue. That sounds way too low - even my local pub brings in more than that.
 
One would think they would. After all, we DO like our vices... even in difficult times.

However, I read a story about a German (or was it Dutch?) brothel which was closing after something like 60 years in business... things just got too slow.
 
Quote from jaytrader100:

Once again.. I always wonder why people like to buy overpriced stocks when they can buy teh exact same thing at a much lower price.
More...

The reason is because you are getting what you pay for. As cheap stocks are cheap for a reason, expensive stocks also are. You simply get more bang for your buck. At what level was GOOG "overpriced"? MA? POT? CME?

Why would you wait until it breaks above 5.05 to start buying... why not buy it now .. below that point?
More...

Because that is really the professional way to trade. Always buy high and sell higher. Don't try to pick bottoms or "value". Leave that to the really long term players like Buffett, et al, who aren't technicians. To me a stock always has to "prove" itself by crossing a level where people who are short it will be inclined to cover it and people who are already long it will stop selling it. That is not yet happening at all in this stock. This is a common question amongst newer traders. Everyone wants a bargain or a discount. Eventually you'll see that paying more is the better way to go, that way staying out of the shitty trades that never really go anywhere.

Your fundamental analysis is spot on and again what I expected to hear from people participating in this thread. Bottom line: broken economy = vice stocks stay strong.

As for our trade we are tightening stop up to break even here because our M.O. is rather short term 2-5 days and always top-down and right now the broad market is not looking like it wants to go anywhere which is bearish to us in the context of this oversold bounce. We sent this out about 15 minutes ago.

lets see what happens....

rick2.GIF
 
once again thank you for the quick response.. i have no problems buying into a stock as it is climbing.. buying high and selling higher, but your stock (Rick's) isn't really breaking out.. it did however, jsut sell off from 27 to 22.. a nice retrace and it might be poised to go higher.. in the short term.. thsi stock Rick's could be down in the single digits this same time next year.. your time horizon is much shorter than i expected. I don't hin buffet really understands the "stripper" business so I doubt he would buy it!!! However, I wouldn't mind being an analyst for a hedge fund and visiting a couple of the clubs from bboth Rick's and VCGH..just to compare the workforce and of course the management.

Anyway.. if its short term trading you are after.. volatility in Rick's is better, but if you are looking for a longer term play going into the wedding season and a slowing economy.. then I would buy VCGH for a 6 month holding period... Personally.

Have a great day.. my trade once again teh stripper spread ....
short Ricks. at 22.77 2000 shares
buy VCGH 2000 Shares @ 4.60

timestamp 5/28/08 15:53:59

hold for 3-4 months or until spread gives 8 dollars profit
 
Jay

obviously I don't think RICK is a short here but I do admire your moxie. I like the title too, "stripper spread"

awesome......

Am looking for $2.00 in RICK. We had $1 in the bag at highs today but am looking to flip out into strength somewhere over $24.00 Our stop is breakeven now as per the email i snapshotted above.

Bull flag on the hourly with a decent close today so so far so good.

<i>As always, remember to tip your bartenders and waitresses......

...Next up on the main stage, its CAN-DY. Give it up guys..........</i>
 
LOL!!! just saw your post.. great post..

I was not trying to poo poo your trade reco... short term (2-5) days is totally different than the tuff I was looking at.. I hope it works out for you in the short term.
 
You must log in or register to reply here.
Back
Top