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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
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- 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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