Management

Vaso Boreta is chairman, president, treasurer & secretary. He spends 80% of his time in this capacity & 20% in operating his affiliated store. .... Ronald Boreta is a director of LVDG & also president & CEO of AASP. He was a golf pro in San Jose, CA & worked in sales & warehousing with a golf discount store in San Francisco & is the principal driving force behind the AASP concept. .... Robert R. Rosburg is a director of both companies. He has been a professional golfer since 1953 & a sportscaster on ABC Sports for golf broadcasts. He received a BA in Humanities from Stanford University. .... William Kilmer is a director of both companies & is a retired professional football player where he played with the San Francisco Forty Niners. He has toured as a public speaker & has served as a television analyst. He received a BA in Physical Education from UCLA.

Financial Status (9/30/98)

---------------LVDG---------AASP----
Total Assets: $27,234,600 $26,127,700
Liabilities: $25,616,600 $15,986,300
Long Term Debt: $13,080,000 $13,080,000 Shareholders Equity: $1,618,000* $7,141,400*
Revenue (3 mos 9/30/98): $562,100 $6,500
Operating Loss: ($798,000) ($685,100)

* Does not include $2,500,000 equity infusion on 10/19/98.

Recommendation

I recommend LVDG for both midterm & long-term appreciation. LVDG's All-American SportPark is now open & has received rave reviews for its facilities & offerings. I've talked to people who have visited the park. I'm impressed that they uniformly say it's a fantastic place -- a wonderful experience -- a great place to have fun for parents & children alike.

The comments I've gotten are as enthusiastic as those I get from people who see Epcot in Orlando for the first time -- that's a pretty good recommendation in itself. Perhaps the reason All-American Sport Park generates so much enthusiasm is that it's much more interactive than even Epcot. I love Epcot, but it doesn't let me drive fast in an authentic racing car environment -- it doesn't let me hit a baseball over the fence of a major league ballpark -- if you go to Las Vegas, by all means go to this park.

LVDG shifted its emphasis to the SportPark. It's a winner, & holds much more promise than the sporting goods business. Working capital has been improved with a 15 year $13.5 million permanent debt financing with Nevada State Bank, & the sale of $2.5 million of its common stock to ASI Group, L.L.C., the investment group headed by Andre Agassi & Sunbelt Commu-nications, Inc.

Here are some other things I like:

  • Re-acquired on favorable terms the 42-acre Callaway Golf Center

 

  • High revenue potential with opening of the SportPark
  • Financing situation improved
  • Focused management
  • Fantastic initial SportPark location
  • Licensing arrangements with major sports icons
  • Negotiations on-going for additional All-American SportPark locations around the world
  • This is truly an undervalued situation

Contact

Call 702-798-7777; fax 702-739-9509; or write 5325 South Valley View Blvd., Suite 4, Las Vegas, NV 89118.

Important Strategies

These comments apply to every situation mentioned in Conservative Speculator. Special situation, low-priced, micro-cap, & high-gain-potential stocks have high risk. Fortunately, not many speculative situations turn out to be disasters, but some do -- that is a risk you must accept. "Winning Investment Strategies," my 60-page guide to speculative investing, is sent to every regular CS subscriber. Stated extremely briefly, here are three of my most important strategies:

(1) Be prudent -- the total funds allocated to speculative stocks should be limited to a small percentage of your cash, certainly no more than you could lose without discomfort. I then suggest no more than 5% of that small portion be invested in any one stock, to spread your risk.

(2) Do not accept my opinion as the reason to invest. Call the company. Get a feel yourself. If you are not totally comfortable, pass. I give you an ample number of possibilities. My task is to expose you to potentially profitable situations. You have the responsibility of making any investment decision. Do not give up that responsibility.

(3) Since in a monthly newsletter it is not possible to tell you when to sell, apply a moving stop-loss strategy. If the price goes up, raise your stop-loss guideline point to something like 20% below the new price. Keep doing that as the price rises. If the price goes down to your stop-loss point, grit your teeth & sell. This limits loss, but lets profits increase.

Update Briefs

These are capsule updates on previously recommended companies that provided us with substantive news during the past month. I also include updates on some Sneak Previews where our investigation has resulted in additional pertinent information. I do not have room for all details, but always include the company's phone number so you can follow through.

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