Cinema Rides (MOVE) Message Board

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Microcap & Penny Stocks : Cinema Rides (MOVE)

MOVE 5.727

+1.2%

Nov 3 3:23 PM EST

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To: Candle stick who wrote (17)	9/4/1996 9:26:00 AM
From: Gary105	of 75

They need to hit a grand slam at Times Square if they are to survive. I've just reviewed their 10Q and 10K. Their balance sheet stinks and they admit it. Current ratio is less than 1 and they will need debt and or equity financing for TSQ. Their lease says they must be in operation by Aug 15th (did they get an extension??) TSQ will require 40 employees (not the 15 that was assumed in the calculation) and I doubt if you can get anyone decent at minimum wage in NY. Also their average ticket price (considering multiple price discounts) is about 2/3 the single ticket price (their Las Vegas experience). They also say that they do not expect any of their rides to operate at or near capacity. On the plus side they say that they can accomodate 9 - 12 rides per hour depending on film length. They are losing anywhere from $0.4 - $0.8 M per year on existing operations. Therefore if your numbers are correct (I think they are high), then they earn perhaps 0.9M pretax (1.7M - 0.8M existing loss), which corresponds to 0.6M after tax or about 0.13 per share. This might sustain a 2 - 3 share price. While book value is over $1, most of it is tied up in long term assets. Their liquidity is poor and they are burning cash on their current operations. So we have a downside of zero (TSQ doesn't open and they file for chapt 11) and an upside of 2 - 3 (TSQ is a sustainable success). I personally would not consider the stock until they open TSQ and we get some readings on traffic flow.

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