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Author: RiverRat One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1766  
Subject: Lyle Berman Date: 6/11/1997 10:46 PM
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I was recently chatting with a retail, commissioned stock broker acquaintance here in the Twin Cities (other than his chosen profession, he's not too bad a chap...)

His take on why RAIN stock seems to be residing in the doldrums of late might have something to do with Lyle Berman's association with the company. His take is that (at least among the Twin Cities' stockbroker crowd) Berman has a knack for cratering companies and still come out smelling the proverbial rose, leaving the unfortunate bond and stockholders holding the bag. This particular guy likens him to the upper-Midwest's version of Donald Trump in that regard. That makes them extremely uneasy about aggressively pushing the stock.

Some of them (and their clients) got burned pretty badly by the Stratosphere melt-down. I think he (Berman) was pulling some hefty profits and back-door fees out of Grand Casinos right before the Stratosphere toppled over and took Grand's stock price along for the ride. He thinks there were some improprieties involved in Berman's previous associations with Wilson's Leather as well, although he was fuzzy about the details.

So, anyway, for what it's worth, there's a possible explanation for some of what ails RAIN (the stock price , not the company. I'm personally long both the company and the price.) The above is a perception of Berman, which may or may not be right or justified. It's certainly not, IMHO, something to base an investment decision on in the context of the cash, growth potential, etc. this company has. I reiterate that this is not a bit of information I'm using to come up with "my" valuation of this company, but one I use to perhaps understand where other folk's valuations are coming from.

But it still might be a factoid to file away in your RAIN folder for future reference; if the ship Rainforest ever starts taking on water, Berman won't be the last one to take to the lifeboats.
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