Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

RCI Hospitality Holdings / Equity Bottom-Up

<ul><li>Following the company’s fiscal 2Q sales release, our thesis remains intact.</li><li>We are encouraged by the improving sales trends RCI experienced in March and early April.</li><li>Further, we see several catalysts on the horizon to provide for accelerating growth over the next 12-18 months.</li></ul>

Following the company’s fiscal 2Q sales release, our thesis remains intact.We are encouraged by the improving sales trends RCI experienced in March and early April.Further, we see several catalysts on the horizon to provide for accelerating growth over the next 12-18 months.

Sales Accelerate in March Resulting in a Revenue Beat; Multiple Growth Catalysts in Place