Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: scope who wrote (6134)	4/4/1998 12:12:00 AM
From: Pancho Villa	Read Replies (1) \| Respond to of 18691

Hi scope. HOw is the movement around the LA club? any news on specials? memberhsip activity? My guess is that things were not that hot in Q1. In the 10k the mention trying to decrease promotions in which monthly dues are waived, Increasing down payents, yet my understanding is that around my neck of the woods they are running a $5 first month special, waiving the membership fee during year 1, lowering the membership fee by $100. They do push financing as opposed to lump payments. Pancho FWIW they have suffered back to back declines in the number of contracts sold. -12% in 96 and I believe 8-10% in 97 attributable to emphasis in more expensive memberships. My hunch is that increased competition, Home equipment, and knowledge of their high pressure sales practices may also have played a role. An interesting point from their 10k is the reduction of TV advertising. Never a good thing but as they say financial, operations people have taken over from marketing types. in 96 operation expenses were reduced significantly but S&A increased quite a bit (the new management team ain't cheap, even excluding the cost of stock based compensation which is dumped in a footnote. I don't see how the company will make .40/share in 98, short of a miracle. Unless this is before extraordinary charges and a huge amount is dumped in there. Pancho

To: scope who wrote (6134)	4/4/1998 5:17:00 AM
From: put2rich	Read Replies (1) \| Respond to of 18691

<bft> <<If you live in L.A,as I do,stay away from the North Hollywood Bally's Club>> I don't go to Bally nor can I live in those densed LA area. Currently have a couple of weeks working in Redondo Beach. Bally ran the ad like $19 down and $19 a monthly due, which is too high compared to what I got at 24hour Fitness. What scared me in shorting bft is that many MMs still think it a good buy .... Again a question to those who know : why the ask and bid price sometimes are at 0/0 and still some trade?