Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Monday, April 13, 2009
Kona Grill Fails Revenue Expectations
Kona Grill (KONA) announced results and soft pedalled the miss on revenues. They were proud of cost controls and their impact on the bottom line. The fact of the matter is that this is a new company with a new restaurant concept. People are losing homes, jobs and their cars. So maybe a new sushi concept is not the best investment. At least management has not made a compelling case at the present time with any information that they are choosing to release. The question becomes what is the burn rate and how long can they last. None of which was discussed in the earnings release.