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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (1957)	8/3/1998 12:20:00 PM
From: Doug Fir	Respond to of 18998

Re: BFT...If your looking for an informed opinion on BFT, try asking "pancho villa" here on SI. He's been trying to slay this stock for nearly a year,unfortunatly, without much success. He's done some great analysis of the financials. Good Luck.

To: valueminded who wrote (1957)	8/3/1998 8:29:00 PM
From: torquatus	Respond to of 18998

Pedicini: Bft looks bad, even on the surface. It has no membership growth, no ebidta growth, and has increased shares from 12 to 27 million without making any attempt to reduce debt. Where does all the cash go? On the latest earnings report deferred revenues, depreciation, and membership dues all declined. Deferred revenues declined because bft previously accelerated the recognition of prepaid membership fees, and now it's catching up with them. The Sec made them stop, so it looks like they switched from prepaid memberships to financed. Supposedly higher margin, but they run no credit checks, which explains the high loss provisions. The growth story is that bft will sell nutrition bars and personal trainers. It's hard to believe that the bally's clientele is going to go for personal trainers when most can't pay their membership dues.