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Microcap & Penny Stocks : CINEMASTAR LUXURY THEATERS (LUXY) -- Ignore unavailable to you. Want to Upgrade?

To: John Arnopp who wrote (35)	12/11/1997 11:20:00 PM
From: Brad Zelnick	Respond to of 85

As advertised. Out with the old, in with the new. The meeting was clearly held in east jesus to filter out disgruntled shareholders who might have been tempted to spray the auditorium with AK-47 slugs. The new folks took over without a peep. My sense is that management will be chainsawed when the deal is complete. Current investors have been diluted out by a big amount. I have to read the proxy to see if new investors have a chance. This is a bulletin board stock, Nasdaq could make it disappear. I'm not at all certain that the new take-over kids would care. This is their thing now. They appear ready to run it, and will not monetize it anytime soon, even if it turns right around. Look at their previous Wometco cinema history. Good result, lots of time. You need to ask yourself what your opportunity cost is. Brad

To: John Arnopp who wrote (35)	12/12/1997 10:00:00 AM
From: Brad Zelnick	Read Replies (1) \| Respond to of 85

now that i have had time to read the prospectus, my advice would be to run, not walk to the nearest exit. Clearly this company was run in a fashion that was to benefit management, not shareholders. While old management was flying the enterprise into the ground, they were awarding themselves consulting contracts and bonuses which they would get regardless of how the company did. Clearly, without recapitalization, the thing was Chapter 11, or 7. They were running on fumes. A look at the agreement shows that there are some huge outs left for Rust et al. If TJ and SB show losses over the next THREE years, the new boys can award themselves new stock to cover it. who knows what dreadful stuff will emerge when the books are fairly done. A reasonable guess would be that current share value will be sacrificed by old management to preserve these shabby inside consulting-bonus deals they awarded themselves. It looks to me like they will have removed ALL shareholder value without the expense of a bankruptcy proceeding. Anyone who buys at this point in time is a lot smarter (or dumber) than I am. Good Luck, Brad (who carries an eleven foot pole because there are somethings he wouldn't touch with a ten foot one)