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Non-Tech : RAINFOREST CAFE
RAIN 3.339-4.6%3:59 PM EST

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To: McNabb Brothers who wrote (4263)5/31/1998 12:07:00 PM
From: Dennis Vail  Read Replies (1) of 4704
 
Hank,

You wrote: >> Wish Disney would take a position in the company and use their abilities to market their products and services!<<

Wish Lyle would just flat out sell to DIS and give all his attention to GND.

>>Bought more just last week in the $15 range and currently own a little more than 10,000 shares!<<

2Q could be bumpy due to the new accounting changes RAIN will implement. They will no longer amortize preopening expenses so they will be have a large onetime charge to clear out all the remaining preopening expenses for units opened in the last 11 months. Hopefully the analysts will view it as what it is, a more straightforward accounting system. Supposedly all companies will be mandated to do this in 1999 and RAIN just wants to get a jump on the gun.

I think revs should be very good in relation to 1Q. As IdidMrsA posted on aol the 14 week first quarter now pushes back the end of the 2Q to included the weekend of the fourth. That's a good chunk of time with the kiddies out of school. I know downtown Chicago will positively kick butt over that period. Margins should be up at least 1% also.

3Q I'm sure will be viewed as the best by the short-termers so if I were you I'd consider lightening up just before 3Q earnings come out. I think the biggest threat til then is to the economy overall in which case we're all going to get nailed pretty good in the correction regardless of what stock your holding.

>>Still a believer in the company, but would like to see the company take a look into some of Dennis's recommendations! <<

Fat chance!! But thanks for the sentiment.

Regards,
Dennis



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