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Microcap & Penny Stocks : Ricks' Cabarette (RICK)
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To: Ben G. who wrote (47)8/26/1997 10:41:00 AM
From: Evor   of 154
 
> I've notice that Rick's is moving up a bit.

> Do you have any thoughts on this?

Ben,

I am a bit surprised. Their earnings were not stellar, but much better than last year at this time. The Houston club, both Rick's and Tantra, were not stellar performers and in fact, I believe their revenue decreased when compared to last year.

However, they have instituted cost cutting measures by cutting their staff and even salaries of upper management and like most clubs are opting for the nighttime only cliente.

I surmise that RICK is rising because of news of the Bun's and Roses Club in Minneapolis. Perhaps, the Sheik's lawsuit has fallen through opening the way for RICK to open club #3. I noticed that there was a spike in RICK when they were approved a liquor and sexually oriented business license in Minneapolis.

I am curious to know what the response will be in mid-September, if the federal court rules that the Houston SOB ordinance is constitutional. RICK in Houston has been given a measily 1 year amoritization period.

I believe the effect will be minimal. RICK is national now. It is moving beyond its Houston roots. The question is, if found constitutional, will other cities adopt Houston's tough policy and how will that effect RICK in the long term.
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