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Strategies & Market Trends : AMIGOS INVITATIONAL YEEHAW PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (338)	6/5/1999 2:41:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 1316

RUBO IPO at $10.50 May 20th. Raised $33.1 MM, selling 3.2 MM shares, 36% of the outstanding. 2.25 MM were offered by Rubio's and .9 by stockholders. Jumped about 40 percent on it's first day of trading!!! Overview from the Registration Statement (S1) s1 biz.yahoo.com <We own and operate 64 high-quality, quick-service Mexican restaurants under the name "Rubio's Baja Grill" with 26 restaurants in San Diego, 27 restaurants in greater Los Angeles, six restaurants in Phoenix, four restaurants in Las Vegas and one in Denver. In addition, we license our concept to other restaurant operators in three non-traditional locations at Qualcomm Stadium, the San Diego International Airport food court and the Del Mar Thoroughbred Club. We openedour first restaurant in 1983, in the Mission Bay area of San Diego, and grew steadily through 1994, at which time we operated 17 units. We increased thenumber of restaurant openings in recent years, opening six in 1995, eight in 1996, 12 in 1997 and 16 in 1998. We intend to open 28 units in 1999, of which five have opened to date, five are currently under construction and 16 have signed leases. We intend to open 36 units in 2000.> According to Red Herring analyst John Fitzgibbons ''Restaurant stocks are coming into play." Restaurant stocks' charts have turned the corner over the last month driven by a good economy and seasonability. People go out to eat more during the spring and summer due to better weather and vacation travel. Restaurant stocks have been putting out good results as well. Over the last two month period, restaurant stocks have beaten earning estimates 48% of the time, matched earning estimates 29% and fell below estimates only 21% of the time. RUBO offers consumers its world famous Fish Tacos and a new culinary delight was added to the menu last year - Lobster Burritos. (Note: Please confer with Instock and Myron regarding Rubo's menu) An excellent comparative stock is TACO. Same market cap and similar target clientele. quote.yahoo.com Thomas Weisel Partners, Dain Rauscher Incorporated, and Piper Jaffray participated in the IPO and will more than likely come out with BUY recommendations in the near future. Two recent restaurant IPOs: quote.yahoo.com Areas of concern: The underwriters have a 30-day over-allotment option to purchase an additional 472,500 shares of common stock from Rubio's and the selling stockholders. Insiders own 54% of the shares. It is possible that insiders may want to sell shares to a now liquid market. ------------------------------------------------------------------- Overall, RUBO has been executing well on their business plan. Profits and revenues have been improving while the Co. has been expanding. Perhaps the Fish Taco and Lobster Burrito will make it to the East Coast. AS