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Non-Tech : RAINFOREST CAFE

RAIN 3.250

+0.6%

12:24 PM EST

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To: Frank Bunn who wrote (140)	7/13/1996 5:00:00 AM
From: Dennis Vail	of 4704

Hi Frank, Welcome to the thread.To be honest,Terry Audette is the resident technician here and he seems to have an uncanny way of staying a couple steps ahead of the market So I'll defer to his expertise as I'm sure he'll give you his reading on the bottom.Myself,I look at the fundamentals and try to stay on top of any breaking news.I'm in RAIN for as long as the stories still there which suspect will be at least 3 years and probaably much longer.So I've been buying during this drop and I plan on continuing to do so.My next order is at 21 and I hope to get a fill Monday before Intel announces their earnings as I strongly believe Intel will make or exceed expectations.I think that will give the Nasdaq the boost it needs to stop the bleeding at least temperarily.If this happens and RAIN doesn't rebound Tuesday I wouldn't at all be surprised to see the teens. From your other postings I gather you are a short-term trader and if so there's a couple things to consider short term.RAINs 2Q is due out at the beginning of August about the same time as the Disney opening.If Intel meets expectations and the Nasdaq bleeding abates but Rain keeps dropping I would begin wondering if RAIN would meet 2Q expectations.RAIN was financed bv Lyle Berman and the so-called Minnesota Mafia venture capitalists who are a very tight-knit group. (see May 27 Fortune Magazine ) As an example one of the group is Perkins of the Perkins Oppurtunity and RAIN is that funds second largest holding according to a relatively recent IBD interview.Also,Reuters carryed a June 4th or 5th announcement from RAIN at a Piper-Jaffray conference that they were 95% certain they would meet the 1996 earning expectations but that research costs for this year had risen to something like 16% of revenues from last years 6% but next year would be back down to about 9%.(You can find the article at INVESTools >>Reuters ).Finally,from talking to store managers around Gurnee I got the idea the they expected two hour lines at Gurnee like there reputedly regularly are at Shaumburg and so maybe some people think its not cranking out the revenue it should.Add having a high P/E during the current slide and you have the sum total of negatives I can find on RAIN.None of which fazes me in the least as a long-term investor because of the preponderence of positives RAIN has going for it which you can easily dig up in the history of postings here.So as long as its falling I'm buying. Some general information you probably already know:Institutions own about 40% (S&P),12 funds hold shares (IBD) and the last time I looked about 20% was company owned (IBD).If you monitor the size of trades I'd appreciate hearing about what you find out. A lot of info is available at www.rainforestcafe.com and also at the Motley Fool websight>>>Search The Fool.Also Zack's provides coverage (INVESTools). Good luck, Dennis

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