Guru Zeke Ashton (Trades, Portfolio) purchased a 45,000-share stake in Dave & Buster's Entertainment Inc. (PLAY, Financial) in the first quarter.
Dave & Buster's Entertainment was founded in Dallas in 1982 when two entrepreneurs, David Corriveau and Buster Corley, decided to combine their businesses to form a single entertainment business. Corley operated a well-regarded restaurant, and Corriveau ran a place for fun and games for adults. They decided their businesses should merge under one roof to form what is now known as Dave & Buster’s Entertainment.
Since its founding, Dave & Buster's Entertainment has expanded to 81 locations across the U.S. and Canada.
Dave & Buster's Entertainment has a market cap of $1.57 billion, a P/E ratio of 27.22, an enterprise value of $1.88 billion, a P/B ratio of 4.5 and a quick ratio of 0.58.
Dave & Buster's Entertainment is also traded in Germany.
It is likely that Ashton purchased a stake for the following reasons:
- The company has been able to expand its operations to 81 locations across the U.S. and Canada.
- Dave & Buster’s generates multiple streams of income from its businesses. The company offers its customers food, drinks (alcoholic and nonalcoholic) and games including skill games, video games and interactive simulators, and it also offers televised events.
- According to GuruFocus, the company has a Piotroski F-Score of 7, indicating a healthy situation.
- The company book value has grown 32% over the previous three years.
- The company has reduced its debt per share by an average of 12% over the previous three years.
- The company's revenue has increased at an average rate of 9% per year over the previous six years from $520.8 million in January 2010 to $867 million as of January 2016.
- The company's gross profit has also increased at an average rate of 9% over the previous six years going from $416.6 million in January 2010 to $704.2 million in January 2016.
- The company has increased its goodwill from $65.9 million in January 2010 to $272.7 million in January 2016 according to GuruFocus.
Below is a Peter Lynch Chart for Dave & Buster's Entertainment.
Ashton began to learn the fundamentals of value investing when he landed his first job working for Bear Stearns shortly after he dropped out of high school. After Ashton gained valuable experience working for Bear Stearns, he took a chance and moved to Europe where he spent the next six years working in treasury and risk management consulting for European banks.
Ashton gained tremendous insight, experience and confidence working in Europe. He decided to return to America and landed a job writing featured investment articles for the Motley Fool. In 2002, Ashton founded the Dallas-based firm Centaur Capital Partners, a firm that specializes in value-oriented investment strategies.
Cheers to your investment success.
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