JOE;
I got a pick for you i think you should track...
Elephant & Castle Group Inc.
Nasdaq: PUBSF - current price $5
Initial DD shows strong revenue growth over last 4 years. $30M market cap Restaurant Business. Beginning to move into Hotel space from public locations where they have lost money with expenses.
Elephant & Castle Group Inc. (NASDAQ:PUBSF, PACIFIC:PUB) today reported sales of US$6,775,000(1) for the quarter ended March 29, 1998, up 18% over sales of US$5,718,000 reported for the same period in 1997.
12mos(1) 1997 1996 1995 1994 1993
Revenues ($mil) 24.7 23.9 21.4 18.9 18.1 17
In order to finance the growth of the company, Elephant & Castle has raised substantial capital through an impressive source: General Electric Investments. In December 1995, General Electric Investment Private Placement Partners II (GEIPPP II) purchased $1 million in equity and $3 million in subordinated convertible notes. In March 1997, GEIPPP II invested an additional $2 million in subordinated convertible notes, and another $2 million in convertible debentures is expected to be issued to GEIPPP II by mid-October. This would leave an additional $2 million in notes available to be issued to GEIPPP II, which would bring its investment to $10 million.
Based upon profitability estimates for the planned Rainforest Cafe restaurants and the revenues expected from anticipated franchise agreements, we feel that earnings could reach $0.82 or more in 1999. After applying a common Eatertainment industry forward P/E ratio of 24 on Rainforest earnings and a forward P/E of 16 on other restaurant earnings, we feel that PUBSF stock could reach $17 or higher when investors begin to look at 1999 earnings, most likely by late 1998.
-from SmallCap Investor
smallcapinvestor.com
Recent News Headlines 6/15/98 1:36:58 PM
Business Wire Rainforest Cafe Opens in Vancouver
5/21/98 12:10:21 AM
Other Elephant & Castle Group Inc. Announces First Quarter Results |
