RAINFOREST CAFE Message Board

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Non-Tech : RAINFOREST CAFE

RAIN 4.990

+4.2%

12:33 PM EST

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To: Pullin-GS who wrote (3755)	1/7/1998 10:21:00 PM
From: Paul Hackett	Read Replies (1) of 4704

I thought that RAIN would retreat somewhat when it was at the 35 level, but I never foresaw a 40+% drop in one day due to a 2 cent miss on earnings estimate. That is an incredible overreaction, I covered my short today and then did a 180 degree turnaround and picked-up a chunk of it at 17 13/16. I called RAIN a "fad" stock on the RAIN short thread a while back, but it is a money-making fad stock and worth serious consideration at this price. Second year revenue drop-offs are typical with this type of business and they should have been factored into the equation. A restaurant can only serve so-many people in a day. But the 11% revenue drop does not make those stores unsuccessful. Growth at this point in RAIN's business life should come primarily from store expansion, and then later from cutting costs and improved operations. I've now changed my spots and am on the good guys' side. Go longs! Go RAIN!

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