Shake Shack reversed a 4 point deficit and roared higher today. You’d think HABT would follow suit, after yesterday’s drubbing, right? Under normal conditions, there isn’t a chance in red hell HABT wouldn’t run today too. But then again, that all depends on how nefarious the company and its insiders are.
See, as the market climbed today and SHAK did a miracle run higher, some fucking scumbag investment bank was passing around a secondary offering prospectus, leading to a leak of information (Piper Jaffray, Baird, Wells Fargo) that caused weakness in HABT’s shares today. I know how this shit works, having worked at bullshit firms like this in the past. The real question that I have for management is WHY THE FUCK ARE YOU DOING THIS NOW AFTER THE STOCK DROPPED 15%?!
Much more than that, the gall of these bastards to permit sales during a lock up period, which expires May 19th. Seriously, this is some fucked up shit. This isn’t a company that needs the money, after just bragging in a conference call that they had enough cash to fund two years of expansion. So this is obviously insiders, motivated by greed and avarice, taking advantage of their dominant position over the layman shareholder.
The sellers will be private equity firm, Karp Reilley, and whoever else owns the stock, pro-rata. I am sure their “advisors” believe there is demand for the shares, especially since the share price is up from its IPO price of $18. Essentially, this is a punch in the nose to anyone who bought stock in the after-market. I understand that private equity needs to sell in order to lock in gains. However, they should abide by the fucking lock-up expiration, or don’t have one at all.
It’s deplorable and makes me reconsider my whole position on being an investor in this company, who clearly places their shareholders into the bottom of their greasy, crooked and greedy little barrel.
NOTE: Karp Reilley owns more than 55% of HABT, so this is going to be an issue going froward.
If you enjoy the content at iBankCoin, please follow us on Twitter
Their burgers also suck.
Ruh-Ro, not cool. I personally would be ok with grabbing some more shares in the $28 area as long as the fundamental story hasn’t changed, but this could be an intermediate term headwind for the stock it sounds like.
Fucking GPRO all over again.
Seriously though. Nobody gives a shit about Habit in my area.
This and this. I’m out of this one.
+1 until Fly mentioned it, I’d never heard of the place.
I had just placed them on my watch list
I mean watch the fuck out list.
Son of a bitch. How many folks want in will be proved now. LA voted it the best burger. The people will decide this fuckery.
This has all the makings of another $GSVC
+1
Reminds me of KORS their first year after IPO.
Thought the plan all along was to build up a huge SHAK position?
Note: The_Real_Fly owns the other 42.5% of HABT. This is going to make for some excellent blog posts going forward (not froward).
I recently got caught up in some obvious drive-down targeting
Human nature never changes. Finding cheats/holes/beats
There’s no way, we don’t end in a major retribution period
again
If Krap O’Reilly owns 55% he can do whatever he wants.
The link to the fish is a nice touch. We should sell this and plow the proceeds into a combination of the IAT and your faviorite regional bank
A carp fish
Gesus Xrist, $HABT is $FEYE March 2014 all over again!
Purge it.
To bad HABT is not listed on the Nikkei. The fucktards could quadruple the float while dumping the whole load and it would still go higher. Godzilla is racing the Krauts for fundamental madness rampage victory.
KarpReilley
indeed.
Regards
Chuck Bennett
Wow, 24 hours into my 12-month HABT buying program and things have taken a nasty turn. I wonder what the next 24 hours will bring.
Ask my 22 year old about this joint and he said… “I’m not a fan. If you are gonna spend a bit more on a better quality burger, go a little harder than the habit”
That is the point tho. Price. It is the best at what it is. The confusion over this product is insane. For the money?
Yesterday was hot dogs. Today is hamburgers.
It really is a simple world when you get down to it. lol
That is HOTTED Dogs to you, sir.
Lock ups get waived all the time. They’re full of shit… Company tells its lock up agents (ie banks) waive this or our relationship will be damaged (read: we’ll replace you with other banks on fee events like these down the line; doubly bad as company and PE sponsor now tel banks to f themselves). Banks justify it, particularly in cases like this, as stock up big from IPO so investors net net have nothing to complain about…
And yes, expect a follow-on likely every 3-6 months as sponsor sells its stake. Usually 90 day lockups on these sponsor sell downs, and these are usually adhered to as banks can get sponsors to chill under the logic that if sponsor doesn’t adhere to lock up, share price will crater.
And doesn’t mean stock will trade higher or lower… I think HCA; Hilton; many others traded higher as sponsors monetized. Just will be an annoying fact of life
What is the point of a lock up if there are always ways around it?
Great question.
Do note tho that if a co goes public at 20 and price gets hit to 15, they won’t waive the lockup… At least usually not. But yea, generally is a weak protection from my experience.
The lock up is designed to keep in low level execs and secretaries
.
“The Habit” would be a great name …
… for a pot dispensary !
—–
But, for a hamburger joint ?
REALLY ?
Just seems a bit … uhhh … odd !
—–
That said … Burgers ain’t Brain Surgery !
I had a Bacon Cheese Burger @ Chili’s last week w/fries & rings and a frosty mug-o-beer !
Can’t imagine it being much better !!!
.
I don’t mean to be snarky, but a mere two days ago, a certain fly stated “it is in my best interest for the stock to be flat to down”. Isn’t this, then, a gift from management to you as you execute your buying program?
Moonshot
This is an actionable event for me
Yup.
As we all know…a good burger in sometimes leads to a giant turd out. Since I had been banned elsewhere and am now kinda “out of the loop”, I am happy in retrospect that I took a dump of this bile producer the day before earnings for a net 7% and some coin. And perhaps I should mention the huge bucks I made last year trading this giant pile of excrement. Tasty or not I have to thank Mr. Fly for making me aware of this volatile POS!
I have always hated secondaries, and still do. This is reason to rethink the position.
Somedays I feel we are just dealing with a bunch of crooks.
As a result of this article, I will never eat at a HABT.