Dave Inc (DAVE)

[Rawnoc]

DAVE -- target $20 to $30 IMO in 2011. Here's why:

(1) Decent growth, low PE, priced cheap for a company in the restaurant industry. I think DAVE sales and earnings will further improve rapidly as the economy recovers.

(2) Competitors have slashed prices and portions on their menu to attract business. DAVE has done little to none of that, refusing to cheapen their brand and image for the long run. This tells me that if operations are still going this well during tough times without discounting, they're going to really clean up as things improve and competitors raise their prices back to normal levels.

(3) I really like their unusually very high profit margins for a restaurant chain. I further like that they are expanding again, having announced new store openings coming including bringing them to Hawaii.

(4) In a recent article, the CEO was mentioned stating he's seeing stability in the economy, and that he "feels better about consumers' willingness to spend"

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55370815

(5) DAVE has been aggressively buying back shares...

"During the first two quarters, we also used approximately $4.9 million to repurchase shares under our current share repurchase program. We repurchased approximately 654,000 shares, at an average price of $7.51, excluding commissions. As of today, we have repurchased 761,000 shares under our 1 million share authorization that was approved in August of 2008.Christopher will have a few closing comments, but at this point, we'd like to take your question."

http://seekingalpha.com/article/229272-famous-dave-s-of-america-ceo-discusses-f2q10-results-earnings-call-transcript?source=yahoo

Interesting. I calculate that for every 4 shares traded between July 1 and July 28, the company bought back and retired more than 1 share.

(6) I am highly addicted to their food and BBQ sauce. They are a relatively small chain, but I think they will be a giant chain some day. Tony Roma's is probably the most famous BBQ rib chain, and I think their food is disgusting. DAVE should destroy them. They continue to win awards for their recipe across the country:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=55371008