RAINFOREST CAFE Message Board

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Non-Tech : RAINFOREST CAFE

RAIN 5.400

+1.8%

Nov 28 12:48 PM EST

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To: J. Kittle who wrote (3685)	1/4/1998 8:47:00 PM
From: Dylan	Read Replies (1) of 4704

I think the drop in RAIN on Friday was for the same reason as CAKE's drop. The stock soared in the second half of 97, and selling now locks in profits while delaying taxes until 1999. Other reasons may be that fund managers wanted RAIN listed in their prospectus which is based on 12/31 holdings, but don't actually want the shares now since it is near its high. If the first is true, we will see it go back up this week, and if the second is true, we will see a drop off this week. I've seen the opposite effect for stocks which tumbled in 97. A good example is Apple. Few fund managers want investors to see that they hold Apple, so they bought on the 2nd and the price soared. The rise of Apple on Friday is more complicated than what I am saying here, but is still supports my point. This effect tends to support my second conclusion above about RAIN, which I hope is incorrect. Happy New Year! -Dylan

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