We recently covered Dave & Buster’s (NASDAQ:PLAY) and opined that it was time to seize the opportunity. Rather than rehash the details of what was stated there, we invite you to review that piece. Briefly, it is our belief that the evidence suggests the this growth stock has been unfairly punished by fears over losses associated with Hurricane Harvey in Texas, and has also been a victim of the sector in which it operates. More specifically, nearly all things retail and restaurant related have seen selling pressure. In this column we will address the most recent earnings put out by the company.
First, you would think the name put out a dud of a quarter with the after hour and pre-market action in the stock, with shares down well over 7% in extended trading, and over 9% lower in morning trading on the open market. While the quarter will be digested over the next few days, initial reaction is negative. But was it really all that bad? In addition, does the long thesis change with these numbers? In our opinion, the quarter was far stronger than the Street is giving the name credit for. Let us discuss…….READ MORE