A naughty Houston-based company that might give comfort in an economic recession

The largest, publicly traded chain of titty ba--, uh, gentleman's clubs, which is based right up the road in Houston, is looking like a stone cold fox on Wall Street's center stage.

Say what you will about investing in "sin."

If we're in a recession, like most experts assert, even some of you Baptists might be tempted by a recession-proof investment.

Moreover, consider what the annual stockholders meetings might entail.

The blog 24/7 Wall St. reports that Ricks

...is the largest public "gentleman clubs" out there. The company has also grown by acquisitions and the company plans to keep making acquisitions. What is interesting if you look at the company's guidance and do not consider the industry it is in, it is hard to argue against the value of the company from a growth investor mind and from a value investor mind. That's GARP for you.

The company posted earnings yesterday and gave its guidance, which it also gave in a second press release today. For its 2008 fiscal year (Sept-2008 end) the company said it expects approximately $61 to $62 million in revenues. That would put after tax net income around $10.5 to $11 million, which would yield about $1.25 to $1.30 EPS. Its outlook for fiscal Sept-2009 puts revenues exceeding $100 million, and yields a an earnings range of $2.30 to $2.50 EPS.

While the company has very thin analyst coverage, these numbers are well above the two estimates measured by First Call. Fiscal Sept-2008 estimates are $1.17 EPS and about $58 million (top estimate is $1.21 EPS). Fiscal Sept-2009 estimates are $1.88 EPS and almost $79.7 million....
Rick's shares have more than doubled over the last year, and its market cap is now approximately $158 million based upon a $21.00 stock price. As far as forward valuations, for 2008 it has a forward P/E ratio at the Low-end of estimates at 16.8 and trades at roughly 2.5-times revenues. For Fiscal Sept-2009, its forward numbers at its own low-end of estimates are a 9.1 forward P/E ratio and roughly 1.5-times revenues.

Also, in case you're interested, you can work there, too.