Not filing on time certainly hurts the short term, because the obvious question is "why?"
It's not like this company is so large that its financials are complicated, especially for a qualified CFO like Philip Gay.
So, there has to be another reason the financials weren't filed on time -- and if the massive selling is any indication, that reason will not be positive.
Will it be flatlined sales and stalled growth? Possible, if there are only two locations and each have maxed out their capacities day in and day out last quarter.
The thing to remember is that this is, for many, a long term trade. How long is long? Maybe ten, fifteen years.
Chuck e Cheese was founded a few decades ago. Took 30 years to get to where it is today. Dave and Busters, founded 35 years ago. Took decades to get where it is today.
Giggles will NEVER be a Dave and Busters because the share structure is already tanked thanks to the toxic financing CEO Parsi accepted a few years back. D&B only has about 45M shares OS; Giggles has triple that and no cash.
But, can this in time become a $1 stock? I think so. But it might not be for another 5-10 years. Until then, best way to make money on this is to buy the lows and sell the highs.
If your average is under .15, I think you'll be okay in the short term. If it's higher than that, either take losses, average down, or hold out for the long term.
