CINEMASTAR LUXURY THEATERS (LUXY) Message Board

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Microcap & Penny Stocks : CINEMASTAR LUXURY THEATERS (LUXY)

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To: Brad Zelnick who wrote (37)	12/16/1997 1:06:00 PM
From: John Arnopp	of 85

Brad, I think this thing has a shot, but mainly due to the following: 1) SCP/Safeguard will have representation on the board, and they have an excellent track record of turning businesses around. They have the expertise and the resources to pull this off. They must have seen something they like (perhaps to fit in with some of their other operations--they are recently into the movie business with purchase of Pacific Title). It could even be bought by a REIT--Safeguard is affiliated with one. 2) The acquisition partnership will own over two-thirds of the company, and have a majority of the board. I think they have the ability to make something of this. 3) Yes, there are many anti-dilution provisions for the acquisition group, but in reality it doesn't matter how much stock the company issues to cover declining business--from where the stock is now, all they would really be doing in making wallpaper. I an NOT suggesting that anyone put their life savings into LUXY, but I've got a small stake, and think it's an interesting company that could have a nice payoff over some time, and it's also diversified away from my usual tech holdings. Just my thought--any others? --John

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