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Non-Tech : RAINFOREST CAFE
RAIN 3.928+0.2%Jan 9 9:30 AM EST

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To: Dennis Vail who wrote (649)9/14/1996 3:52:00 PM
From: jimleon   of 4704
 
Hi Dennis, I think the growth is very promising with
RAIN. I see no reason to believe the growth can not stop.
Dont know if 100% growth is achieveable, I'm happy with
50%. I don't think the stock price is overvalued, but
just right to undervalued. The eps will make or break
us. If eps comes through, this stock will be at 40-50
within a year which is my goal. I think the stock is still
not widely known, there is just 8 of us here talking about
it. Ironically, PZZA is performing better than RAIN lately
and I think the growth in RAIN is stronger eps wise than PZZA.
Thinkng about selling some PZZA to get to around 2k shares
RAIN.

The hard part about stocks is just waiting. It seems
the growth in price for a year occurs in around 10
trading days, the other trading days is just treading
water with the market. The harder part is trying to
figure out those 10 trading days, which I can
not predict There is no way in hell any market guru, chartist,
or myself could have called the market correction this summer
and the amazing market comeback.

Restaurant stocks are great covered
call stocks because of low volatility. My sep 35 calls
will be expiring this week and I will probably write the oct 35. Will stock hit 35
with the disney numbers who knows?

Also, the stock is just 20% off its 52 week high which I
like to see. PZZA is around 5% off its 52 week high.

Jim
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