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Microcap & Penny Stocks : Restaurant Teams International, Inc.-RTIN -- Ignore unavailable to you. Want to Upgrade?


To: Howard C. who wrote (3039)2/24/2000 9:35:00 PM
From: falcon74  Read Replies (1) | Respond to of 3351
 
As I posted earlier on RB I think the market will over time recognize the earnings stream that RTIN now has.

Personally after the RSI announcement, I thought that RTIN's stock would run to $1.50+ since to me it is now worth in excess of $3 on a fundamental basis. However, the buying did not come in as I expected because of: 1) what you said...RTIN is not Sexy, 2) the skepticism of Mgmt for poor past performance and 3) the company having no PR firm to promote it.

Tom Aigner is the IR person. Most of the good companies that I have invested in have had both an IR person (usually internal) and an outside PR firm.

Now that RTIN has a legitimate company that is undervalued. I am hopeful that mgmt will address the issue of hiring a PR firm that can promote the company to new investors. A month ago there wasn't any need for a PR firm because we were essentially a shell and had no story to tell.

I believe that with an earnings stream (that we now have via Tanners and RSI) we now have a secondary source of repayment for debt servicing any new debt. Also, we no longer have a lawsuit against the company. Therefore, I believe that the chances for RTIN securing the long awaited financing for Fatburger is greater than ever. For those that don't know me, I am a commercial banker and there is no doubt that RTIN with the existing earnings stream is now a bankable company. The potential lender no longer has to rely totally on the income stream from the Fatburger chain.

I just turned down a $10M loan to a company the other day despite the fact that this company had a fairly good primary source of repayment. The reason for the loan decline was simply that the company did not have a good secondary source of repayment and Banks do not want to be dependent on just one source of repayment.