RedChip Weekly Newsletter

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REDCHIP MONEY REPORT

Mar 16, 2016

RedChip Issues Research on HOTR; Price Target $2.56

RedChip Research Director, Thomas Pfister, a Chartered Financial Analyst, published a research report on Chanticleer Holdings (NASDAQ: HOTR), issuing a price target of $2.56 per share, a gain of 200% from recent trading range.

HOTR owns and operates restaurant brands globally. It’s a franchisee owner of Hooters® restaurants in international markets including Australia, South Africa, and Europe, and two Hooters restaurants in the U.S. The Company also owns and operates Better Burger brands in the rapidly growing fast casual space, including American Burger Co., BGR the Burger Joint, BT's Burger Joint, and Little Big Burger, as well as a healthy fast casual concept Just Fresh restaurants in the U.S.

In a span of six years, HOTR has grown to 63 locations around the world and its growth strategy is to expand these brands in the United States and emerging markets through franchising, acquisitions, and organic growth. These locations give the Company a current annualized run rate of approximately $55 million. In 2016, HOTR expects to open about 8 to 10 new locations domestically and internationally. We expect three of these locations to be company-owned restaurants domestically and the rest to be franchises, with a primary focus on international BGR locations.

We are valuing HOTR using 1.0x EV/Sales multiple applied to our 2016 sales estimate of $62.43 million. This derives a target price of $2.56. A 1.0x EV/Sales multiple values HOTR near the low-end of its peer group and we believe that a discount is appropriate, given that HOTR is a smaller company relative to the majority of its comps, and the fact that the Company is just beginning to generate positive EBITDA. We believe that HOTR has strong potential for cash flow growth, given its recent acquisitions of brands in a high-growth segment of the restaurant market and its significant potential to grow the Company through both company-operated and franchised stores.

Read Report Now

Dave Gentry Interviews CEO of AtriCure

AtriCure, Inc. (NASDAQ: ATRC), a leading innovator in treatments for atrial fibrillation (Afib) and left atrial appendage management, recently reported fiscal year 2015 results with revenue up 21% to $130 million. Learn more about this exciting $500 million market cap company by watching Dave Gentry’s interview with ATRC president and CEO Mike Carrel.

RedChip Top Performers 2015-2016

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RedChip Global Online Growth Conference

More than a dozen leading microcap and small-cap stocks presented at our online conference in February. Watch the replays, including Q&A sessions with management, today.

Watch Replays

Quote of the Week

"If you want to invest in the microcap space buy companies not stocks, if you buy stocks, the daily fluctuations and lack of liquidity will drive you crazy."
- Byron Roth, CEO ROTH Capital

Lesson of the Week

Concerned about volatility? Learn how to use BETA to measure the relative volatility of a stock in this week’s lesson.
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This Week on RedChip TV

This Week on RedChip TV: Interviews with PharmAust & Prescient Therapeutics.
Watch the full episode now.

Latest News from the RedChip Nation

Learn about the latest developments in the RedChip Nation, including announcements from OASM, ESES, OXYS, and GNOW Read More

MidSouth Week in Review

The bull market celebrates its seventh anniversary as the S&P notches its fourth consecutive weekly gain.
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Millennium HealthCare: Strong Buy Issued by LJR Capital Management

According to the report, MHCC "has successfully positioned itself in the right place, with the right products, at the right time."
Read More

Recent Reports

Top Movers of the Week

Multiple double-digit gainers in the Nation last week, with LTTC leading the pack up 50%.

Weekly Index Performance

The indexes continued to rally last week, closing up another 1%.

Insider Buying Report

Several additions to the insider buying report last week.

Bear Market Facts

Four important facts about bear markets.

Book Review

Dave Gentry reviews "Lords of Finance", a bestseller that explores the role of central bankers in the crash of 1929.

About RedChip

RedChip Companies, an Inc. 5000 company, is an international investor relations, media, and research firm focused on small-cap and mid-cap companies. For 23 years, RedChip has delivered concrete, measurable results for its clients. Our digital magazine, the RedChip Money Report is delivered on-line weekly to 60,000 investors. RedChip has developed the most comprehensive service platform in the industry for small-cap and mid-cap companies. These services include the following: a worldwide distribution network for its stock research written by analysts holding the CFA designation; retail and institutional roadshows in major U.S. cities; outbound marketing to stock brokers, RIAs, institutions, and family offices; a digital media investor relations platform that has generated over 2.3 million unique investor views; quarterly global online institutional and retail investor conferences that reach over 10,000 investors annually, a globally-televised show, "The RedChip Money Report,” which airs weekly in 200 million homes in Europe, Asia, Latin America, and Australia on the Bloomberg network and in the U.S. on Newmax TV (available on DIRECTV and Dish Network); TV commercials in local and national markets; corporate and product videos; website design; and traditional investor relation services, which include press release writing, development of investor presentations, quarterly conference call script writing, strategic consulting, capital raising, and more.