Our favorite purveyor of adult fantasy, Rick’s Cabaret International (NASDAQ: RICK) reported results May 12th, and there appears to be good news on the horizon.

I am recommending immediate purchase of shares in Rick’s stock at or around $6-7 per share, and in fact I added to my position at $6.90 on May 13th.

As I wrote in my recent buy recommendation for Rick’s shares, I feel that the company has reached an inflection point

While the economy still shows signs of weakness, it appears that as a result of Rick’s best-in-breed status, rebranding efforts at underperforming clubs, as well as several marketing campaigns, the company is expanding market share and wisely spending now to reap the benefits later.

In this post I’ll be breaking down Rick’s full earnings release, as well as their analyst conference call, and round out my post with what you should do with Rick’s stock whether you do or don’t own it yet.

New to the Rick’s story?

Rick’s Cabaret International, Inc., owns and operates upscale adult nightclubs serving primarily businessmen and professionals.

Rick’s differentiates themselves by providing an atmosphere where they can offer a unique quality entertainment environment that includes highly experienced and well screened entertainers, high quality managers hired from within the adult entertainment industry, and finally, providing an atmosphere and ambiance, including exclusive VIP rooms, that appeal to upscale clientele.

Rick’s also owns and operates several online and offline media properties that produce adult websites as well as cater to owners and operators of intimate apparel and adult retail stores.

Rick’s nightclubs offer live adult entertainment, restaurant, and bar operations in Houston, Austin, San Antonio, Dallas and Fort Worth, Texas; Charlotte, North Carolina; Minneapolis, Minnesota; New York, New York; Miami Gardens, Florida; Philadelphia, Pennsylvania and Las Vegas, Nevada.