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Non-Tech : RAINFOREST CAFE
RAIN 2.910+1.6%Jan 27 3:59 PM EST

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To: Brent A. Thale who wrote (35)6/5/1996 4:41:00 AM
From: Dennis Vail   of 4704
 
Brent,you must promise to declare RAIN undervalued at least once a week.Aparently some out there is listening.

Seriously,the announcement I mentioned two posts back may answer some of your questions.

I think you are dead on track with investigating the Mushroom Bars.We need to also find out what exactly they offer and don't offer compared to full-sized Cafes ,their size and cost,and rate of expansion.

Got the 6/3 S&P today from Reseach Magazine.It fills in some pieces to the puzzle of the price.
5/9 1Q earnings announcement and (S&P reports Ladenburg upgrades to a buy On 5/8.Rain at 32.
5/13 (S&P) Correction Ladenburg reiterates long-term buy .Earlier incorrectly reported as buy.
5/15 10-Q filed Stock continues to rise.
5/21 3 for 2 split and 5 new restaurants announced.Stock up 5 more to 45+.
5/22 Reuters announces for FIRST TIME that Ladenburg down-grades to a long term buy.No mention of incorrect report occurring previously.Stock drops 3+.

Ladenburg, by the way,is one of the three (out of five ) RAIN analysts that underwrote the second RAIN offering Make what you will of it.I think the analyst/underwriters are keeping the stock on a leash.Which is fine with me.It gave me the oppurtunity to increase my position and I'm in for the long-term.
Incidently,34% is held by institutions(S&P) and 20% by insiders(IBD)One of the institutions is also a insider (Perkins) I believe.For more on the insiders(Minnesota Mafia venture capitalists) read article in 5/27 Fortune Magazine.

Finally,RAIN might not be in the Portfolio but it does top the list of the Motley Fool Edible Eight.

Dennis

Check your e-mail and pass on to Jeff et al,por favor.
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