Maybe it does, maybe it doesn't. Usually stock prices drop after rights offerings are announced, but there is also the possibility that we get some positive news in the short term to act as a buffer.
Here's the thing. And I'll say this in a separate post I'm sure down the road. Nothing has changed from when this was a .01 stock and nothing has changed from when this was a .25 stock. The company is operating just the same regardless of the share price, and the two locations that do exist are doing very, very well all things considered. The only reason this went to under a penny for a while is because of the toxic and dilutive financing, which has since ended.
This can be played two ways -- you can look at the technicals like you do for a quick flip, or you can buy in at any price and wait patiently.
The only question investors have to ask themselves is whether they believe this concept has broad appeal beyond Los Angeles, and whether the company's management team has the ability to execute a model that will allow for such expansion.
When I bought Giggles n Hugs, I did so thinking this would be a 5-10 year investment. That's usually how long it takes (at least) for a company to become big. Dave and Busters was founded in 2002, and didn't become "huge" for nearly 20 years. Fanatics was founded in the Avenues mall in 1995 as small shop next to Radio Shack that sold Jaguars stuff -- it didn't become a $4B company overnight.
I bought this as part of a 5-10 year plan. It's easy to be frustrated with the slow growth, but I have to remind myself that it's only been six months. There's still a lot of runway left before I'm ready to concede this was a bad stock pick.
News 
Market Data 
Discover 
AI
