To: Marshall Teitelbaum who wrote (3750 ) 1/7/1998 9:47:00 PM From: Mel Boreham Respond to of 4704
Hi Marshall... we all need a good foreskin joke right about NOW! Its been a tuff day!! Anyway, I happened to mention that my Rainforest Cafe burnt to the ground over on the IOM thread and was then asked if I thought the split would be postponed by E.Graphs... so here is my response reposed here: To: E. Graphs (42755 ) From: Mel Boreham Wednesday, Jan 7 1998 9:19PM EST Reply # of 42780 Wildly Off Topic***Hi E... Yes they really slamed the heck out of it today... and for a measly penny difference in analysts projections. But there are a few other more sinister uncertainties lying in the shadows. They are supposed to split 3 or 2 on the 15th. I am not sure what the board of directors will decide. I guess they could postpone it, but doubt they will do that. Then there are the debt instruments (debentures) that they want to sell in order to have enough cash to expand into many new venues around the US and the world. We have also always had a few shadowy figures that have taken their toll from time to time. Mr. Lyle Berman is heavily connected to the gaming industry (Indian Res stuff) and then there was Mr. Martin O'dowd who mysteriously left on an unexplained "leave of absence" last year, before finally leaving the company to go to work for the Canadian company that just happens to underwrite RAIN developments across the northern border. Then there was the TOWV debacle, with Mr. Stupak and his Stratosphere Tower in Vegas! It went bankrupt and is still causing a few tremors in that part of the world. Mr. Berman's good ol' boy network has had quite a few "colorful" character is its lineup. It's a very interesting story... in fact it may be written into a best selling business book someday. By that time Rainforest Cafe should be doing quite well on its own. It is an excellent concept and each and every one of their stores has waits of up to two hours or more just trying into the place to get seated. The food is quite good, and of course there are always problems trying to expand too quickly. Training is everything! RAIN has invested a great deal of money in making their new restaurants, up to 12 million per site! So, if for some reason there is a problem in the mall where they are to open in, not actually opening on time... then there goes the cash flow and you have negative numbers until its finally online. There has been recently been such problems in Pallisaides mall in NY, Adventura Mall in north Miami and also with the new MGM store in Las Vegas. Once all are operating well, things should even out an the money should come rolling in. Esp. from the new RAIN in the new Disney theme park in Orlando, Animal World, where the Rainforest Cafe will certainly be in just the right environment, and it will not only be the biggest store to date, but it will be the only "sit down" rest. in the entire park! So revenue flows should turn positive quite quickly. But now I've gone on way too long so will just sit here hoping that the market comes to realize the true value of this high producer growth company. My Best to you for the New Year... Mel