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Non-Tech : RAINFOREST CAFE -- Ignore unavailable to you. Want to Upgrade?

To: Paul E. Koster who wrote (4281)	6/7/1998 2:18:00 PM
From: Dennis Vail	Read Replies (1) \| Respond to of 4704

Notes from the MF AOL Chat with Brimmer and Robinow: Why the board appointed Brimmer President: Brimmer: The Board concluded as we have stengthened the operating side with the appointment of Carey to COO that I wasa the best choice given my historical involvement with the company. ( translation: Lyle trusted I'd run the company the way he wanted ) On the option repricing: Robinow: To my knowledge most institutional investors felt that the option exchange was very fair. (translation: You individual investors are idiots. If you had any options yourself you'd realize the wisdom of repricing them. The recent price weakness has nothing to do with the option repricing or Brimmers promotion. So there!!) On a possible merger: Brimmer:We as a matter of policy do not comment on merger questions On Same Store Sales: Brimmer: We announced that April was down 1%. May saw some deterioration past that but we expect a strong June with school out. How do you see SSS playing out with new units: Robinow: Icons flat from year to year and mall units down 15% after the first year, down 5% more the second and up 3% every year after that On SSS and investment costs for 1998 in terms of ROI (Return on investment) Robinow: As we move from the second to the third year we see cash on cash returns move from 50%+ to the 40s and ROI move from the mid 30s to the low 30s. ( Me: Still very strong if the low 30s hold.) On retail: Robinow: Sales per square foot still exceed specialty retail averages by 25%. On Animal Kingdom: Robinow: AK cost about $14 Million and the sales to investment ratio will be greater than 2:1. The affect of the 2Q accounting change: Robinow and Brimmer: We expect the base write off to be about $4 Million and a restatement of Q1 down (approximately a penny) On the RAIN website: Brimmer: New site under development total overhall. Great plans for new website. On possible new non-Berman board members: Brimmer: Well, I can't say. We are very focused on running the business. (Translation: When the Pope gets married.) Robinow: Our Board is as tough as any I have seen. (Translation: See no evil hear no evil speak no evil) T-T-T-T-T-THAT'S ALL, FOLKS!!! My opinion: The ROI, SSS figures given sound both reasonable and promising. However given the expected and obvious jive responses to questions on the internal workings of management I tend to have some doubts about the veracity of anything these guys said. But for those of you who trust them it sounded pretty good. For me, nothings changed. I'm a short-term trader of RAIN until I can see some light at the end of the tunnel management wise. And I pray someone else buys the company Expect prices to range from 13 to maybe 17 until 2Q earnings are reported around Aug 1. Then with the 3Q being historically RAINs stongest and all the domestic opening planned in 3Q and 4Q I think RAIN might break 20. At which time I'm taking Dan Brockman's advise and selling the remain shares I have. I'll try and sell my Aug 12.5s when it approaches 16 again and I'll buy Nov calls (12.5s or 15s with the price under 14 and certainly at 13.)And sell all BEFORE 3Q earnings are reported. Regards, Dennis