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Non-Tech : Dave & Busters (DAB)

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To: Dave Cohen who wrote (64)6/10/1997 4:27:00 PM
From: Grant Froese of Calgary   of 278
 
This stock really intriques me. I don't have a position in the stock right now, but I think this could be a real winner along the lines of Borders. The stock has been on a nice rally phase ever since it beat earnings estimates and I'm hoping it will drift down a little bit to provide a nice entry point for me.

I do have some questions about their return business, especially in their older stores that have been around for more than a couple of years. With all the hype and excitement, any brand new store is likely to attract business from young hipsters, but is the entertainment experience so compelling that customers return on a regular basis. If it isn't, you basically just have another overblown Planet Hollywood or Hard Rock Cafe.

I will be particularly intrigued by results from the Birmingham, UK store. It strikes me that this is exactly the kind of kitschy Americana type stuff that foreigners love. I can see pretty rapid expansion, funded by large foreign backers, in rest of Europe and Asia if the U.K. stores provide strong results on a consistent basis (several quarters worth).

Any information would be sincerely appreciated.
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