bwmiller79
Nov 3, 8:11 PM
$BLMN - this week will be interesting. Stock traded a low of 7.66 on 9/30 and proceeded to rally (+45%) to a high of 11.28 on 11/02 -- and then a bombshell:
https://www.thestreet.com/restaurants/cerca-trova-restaurant-group-behind-outback-steakhouse-files-for-chapter-11-bankruptcy
That can't be good for the restaurant group. If Outback is going under, Carraba's and the Bonefish Grill will likely be close behind.
Flemings could spin off and survive.
The news comes off as a blatant pump and dump and that should scare new longs on the retail side and any weak holders in the stock into the end of the year.
At 0.22x sales and with 4B in annual sales, this business generates positive cash flows even with heaps of debt, at the end of the day (or year) positive cash flow is what its all about.
$DRI is still a better ticker, they still have significant real estate holdings behind their sales,
$BLMN already mortgaged the farm.
How low do we go on this news?
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