Below is a note written by CEO Keith McCullough on why we're adding DFRG to the long side of Investing Ideas today:
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During a stock market crash, under-performing fund managers will sell pretty much everything in the emotional moment...
They aren’t selling because they want to. They’re selling because they didn’t sell higher (and now they have to).
That presents the patient investor with opportunities. There's a reason why I haven't had you buying a bunch of small and mid-cap stocks for the last 3 months!
On Del Frisco's (DFRG) we had news last week - here's the opportunity from Howard Penney's perspective:
"The management team of DFRG officially put the company up for sale. The best asset the company has (and a very attractive PE asset) is Del Frisco’s Double Eagle Steak House. Depending on how you want to value the Double Eagle we think that asset is worth between $7-$10 per share alone."
Buy on red,
KM