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Non-Tech : RAINFOREST CAFE
RAIN 2.865-2.2%Jan 26 3:39 PM EST

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To: mike linnihan who wrote (598)9/12/1996 6:11:00 PM
From: Dennis Vail   of 4704
 
Hi Mike,

I don't think a fifty % plus drop in RAIN is very likely unless it coincides with a significant correction of the market and some specific bad news regarding RAIN. Boy, it woulld present a marvelous buying opportunity if it did and I'd have to seriously leverage myself.

Basically, what's happening is current income per share will be diluted around 15% but the cash will increase future earnings much more. As long as there's no fundamental problems with the company and you are a long term investor whatever drop happens is insignificant. My only druther is that I'd like to see the secondary offering when RAIN is at 40 rather than 28 as we can build more new Rainforests that way

I see you hail from Minnesota - what part? As you may have gathered, my wife and I really like your state.

Bienvenido,
Dennis
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