CINEMASTAR LUXURY THEATERS (LUXY) Message Board

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Microcap & Penny Stocks : CINEMASTAR LUXURY THEATERS (LUXY)

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To: Candle stick who wrote (15)	5/14/1997 7:58:00 PM
From: roland	of 85

I can't get a phone call returned from management, which is unusual considering they said that they were taking a number of steps to improve the awareness of the stock to ensure the investment community is well informed of their growth and potential, as quoted from their 1996 annual report. On the surface, it looks like one of the cheapest stocks out there. Regal Theatres, as example sells for 3.5 times book and 4 times sales. They have 151 theatres and 1225 screens. With a market cap of $875 million that works out to $714,287 per screen. Hello. Below the surface you have a company which announced that they granted exclusive CONCESSION rights to ALL of its' theatres to a third party, but didn't announce what that meant. (See the 4/22 release) In case you didn't know, theatres make all of their profits at the concession stand. Also the company twice sold converts in 1996 convertible at huge discounts to the current stock price. (i.e when the stock was $7.50 they sold bonds which let the buyer pay $3.95 for the stock or 85% of the bid). Not withstanding all of the above, I'll buy dog shit at the right price. But only if I can talk to management.

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