To: Mesaba who wrote (45 ) 4/4/1998 1:38:00 PM From: Mojo Read Replies (1) | Respond to
I have been reading the messages posted and I feel I can add some additional information. I own units of Hotel Discovery and I feel it should perform very well. The restaurant will open up sometime in June. For a more exact date you can try calling headquarters at 612-837-9917 and asking for additional information. The reason for the name change to Cafe Odyssey is because people were calling up and trying to book hotel reservations at the Mall of America. No kidding! Personally, I like the new name better. As far as the stock price, I feel it is a great time to buy additional shares. Personally, I would suggest buying the units. The reason is because when a stock begins to rally you have both the common share and the warrant working for you. Even though the warrants don't have any intrinsic value at this time I think an additional $1 or so is well worth it. If the stock starts moving like Famous Dave's did the warrants could very well be worth $4 or $5. After the units trade at or above $7 for 14 consecutive trading days, the warrants will be called. At that point you will have one month to either exercise the warrants at $6.50 (meaning buy an additional share at the fixed price) or sell the warrants. If things go well I would suggest selling the warrants and holding on to the common shares. Even though I am very optimistic about Hotel Discovery I would be very reluctant to hold it for too long. If you have been following Famous Dave's and The Rainforest Cafe I am sure you understand why (I am assuming Mesaba and Dylan are proud Minnesotans). The slightest whisper of bad news will send these stocks crashing down. For instance take R.C. After you adjust the stock price for the splits you have a high of $26. When R.C. announced that their earnings were one penny short of analysts projections, the stock dropped to $11. The same holds true for Famous Dave's, except they really made some big mistakes and their news was worse. They expanded too fast and they picked poor locations especially in Wisconsin. I guess the point I am trying to get across is that these restaurants have their big Grand Openings and everybody is jumping on the bandwagon all excited about the stock and what a great meal they had, but then the restaurants lose their luster or something new comes along and takes their place. These companies cannot continue to keep increasing profits year after year. Since these stock are so volatile it is imperative that you jump of the bandwagon before the bad news hits because once the bad news hits there is no getting out until the stock takes a HUGE drop. You don't want to see you profits wiped out in one day. So follow the stock closely and take out some of your profits. Why do I think this is a great opportunity to make a profit?
