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 dilute during a lock up period, which expires May 19th. Seriously, this is some fucked up shit. This isn’t a company that needs to money, after just bragging in a conference call that they have enough cash for two years of expansion.
The sellers will be private equity firm, Karp Reilley and whoever else owns the stocks, pro-rata. Obviously, 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.