Dave & Busters (DAB) Message Board

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Non-Tech : Dave & Busters (DAB)

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To: Grant Froese of Calgary who wrote (74)	6/11/1997 11:36:00 AM
From: Dave Cohen	of 278

Grant, I think your best approach would be to dollar cost average. The current price is a reasonable price for this stock. It's PE is ~27 based on the last 4 quarters. They are expected to grow at > 35% for the next 3-5 years so I don't expect the price to fall back to 20. I personally don't think it will fall back down to 22 again. I have been buying the stock since it was 12 all the way up to the low 22 or so. As far as same store sales, as long as they have grown over the past year then we are fine (real growth in revenues/earning comes from expansion - not same store sales). It would appear it is at least keeping pace with inflation (with inflation at 3% then we any increase is pretty much keeping pace with inflation). If I get a chance I will call Investor Relations and ask (call them - Chas Michel, chief financial officer, (214) 357-9588 - he is a straight forward and easy to talk to and does talk to even the little shareholders). Some things that give me confidence in their growth is recent developments. They have expanded their credit line to fund their expansion plans through 1998 with any need to sell more shares. They are accelerating their Denver opening to the fourth quarter, and the Rockland County to the first quarter of 1998. They are getting very good at opening new stores and keeping the costs of the new stores under control. They have also signed letters of intent on three new planned 1998 locations: Baltimore, Md.; Orange, Calif.; and Irvine, Calif. I think this is a sign that the VP they hired from the Staubach company is already helping them line up the new locations. I get the feeling the are really hitting thier stride. sorry to ramble - I know this is all in their press releases.

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