Investing in micro-cap stocks is different from investing in the usual stocks I look at. When investing in a stock like Google, I assume the Street knows about almost every aspect of the business, every trend in the industry, and is working on pricing in 2017 earnings. This isn't the same for a micro-cap stock like RCI Hospitality which has a market cap of $100 million. This judgement is based on my findings while following the stock for over a year. If a news event comes out, sometimes the stock takes a few hours to react. With this inefficiency understood, I think now could be the time to buy the stock as it has fallen from $12 per share to below $10. I think the main reason for the stock's fall is the poor sales results this year. These results have been caused by the severe flooding in Texas which is where several of RCI Hospitality's strip clubs are. I think that next year's weather won't be as record breaking as this year. This gives the company easy same store sales comps. The company trades at a low PE of 11 because it is unethical to invest in strip clubs. I would venture to say it is seen as even more unethical to buy stock in RCI Hospitality than Altria or Reynolds. RCI Hospitality doesn't pay a dividend and doesn't have a path forward for long term growth, so I'm recommending this as a swing trade. The company has a difficult time acquiring new strip clubs because of regulations, so it has resorted to starting a quick service restaurant. The restaurants are not a great business to be in and the Yelp reviews are poor. The only selling point is the female waitresses, similar to a Hooters. With this in mind, there probably isn't a catalyst to change the company's direction which has been flat over several years. If we do have a recession in 2016, this stock will go below $8 as it is extremely sensitive to the health of the economy.