Showing posts with label rubio's. Show all posts
Showing posts with label rubio's. Show all posts

27 August 2010

Oh, now that we see the potential, we'll take that from you

I am a little ticked off. I had a stock taken forcefully from me and I a offended that such a thing is legal.

I am convinced that great stock opportunities come along at best a few times a year. On occasion, you encounter a company that Wall Street doesn't really know about and that has not yet generated any numbers to prove its potential.

Oh, and I really like fish tacos. It's a San Diego thing but you know, there was a time when pizza was just an Italian thing. If something tastes good, it'll take off.

Rubio's is a local restaurant chain that helped to popularize the fish taco this side of the border and on top of that, they offer relatively healthy Mexican food.

For all these reasons, I bought stock in the company. McDonald's market cap is about $78 billion. When I bought Rubio's stock, their market cap was about $50 million. If Rubio's had 1% of the value of McDonald's, the stock would rise 10X. It seemed to me a reasonable bet.

About two days ago, my Yahoo portfolio says, "No such symbol RUBO." I didn't have time to look into it until today. As it turns out, a company has taken Rubio's private. The good news is that they paid me about 75% more than I had paid. The bad news is that this is nowhere close to the 10X I thought possible. And, I was not even given the option to say no to their offer of $8.70 a share. This was, from my perspective, a forced sale.

So, on top of all the other problems with stock market investing, whenever a really good opportunity does come along, someone can force it from you? Really? That just seems wrong. And I'm a little ticked off. I might just go somewhere different for Mexican food this weekend.