(RICK: 13.97 +0.22%) is having a nice day today, along with the broader market following a positive Institute of Supple Mustaches report which showed manufacturing had contracted less than previously thought.

RICK is a great growth stock/story with the high quality problem of having its earnings acceleration occur during “The Great Recession of 2008.”

Co announces it has signed a definitive agreement to buy The Executive Club, an 18,000-square foot gentlemen’s club and the real estate on which it is located in Dallas for a total purchase price of $9.5 mln. Rick’s Cabaret will purchase The Executive Club for $3.8 mln, to be paid with the issuance of 152,082 shares of restricted common stock of Rick’s Cabaret. As part of the transaction, Rick’s Cabaret will also purchase the real estate on which the club is located for an additional $5.7 mln, payable with $4.25 mln in cash and the issuance of 57,918 shares of restricted common stock. The stock has been valued at $25 per share.

courtesy of the bouncer at briefing.com

My comments: I concur. $5 ain’t shit when you’re already paying a relative shitload to get cock teased. You ever paid a stripper $100 bucks to grind your boner? Exactly. How about $1,000? But never again, due to the $5 bagel tax.

My previous RICK articles.

Note: Paraphrased from CEO –– “We will look to buy only high traffic, earnings accretive clubs at 3-6x EBITDA.”

Estimates will need to be raised by the one analyst following the company. Hmm, underfollowed by the street (def. not this site). And it has a tight float. And earnings acceleration. Odd.

I have instructed my structured fin. guy to buy another “mezzanine level tranche” in the name at $23.69. This is a long term hold, and as such I am using this as my stop guidelines. The stock could ultimately touch the rising 200-day, but I think ~20 is the floor and anywhere between $20-24 represents value.