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Five analysts and top management from sixteen sector firms examine the Leisure Goods & Services sector in this special 89-page issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info384.htm

TWST: What has been driving these companies? And to what extent are consumers likely to cut back on spending on recreation and leisure in a weaker economy?

Mr. Conder: To a great extent this sector is a demographic play on a generation with more disposable income. Secondly, you referred to the influence of spending on leisure. Each of these companies manufactures products or provides services which are discretionary items that are used to provide recreation and relieve stress. Because of the uniqueness of the product/service provided, there is a wide degree of cyclical variance among these companies. So at times when we’re witnessing a slowdown in the revenue streams for some of these companies, others are performing quite well.

TWST: What’s your outlook for the long-term growth of motor sports?

Mr. Conder: In the US we think these companies have entered a more mature stage of their life cycle. You continue to have opportunity related to NASCAR from ancillary rights, that being Internet, international broadcast, and other related type of rights separate from the already signed and in place television agreement. So there’s some opportunity there. There’s opportunity, as always, to add additional seats. But I think we’ve seen the peak in that because you’re starting to hit some price resistance from the consumer. We started to see this exhibited last year with the increasing resistance related to the ticket prices that consumers are willing to pay to attend an event. We believe from an overall NASCAR, Winston Cup perspective, you have limited pricing power for the seats. Therefore, it boils down to the ancillary broadcast rights and garnering additional sponsors (both are more of a cyclical nature) and the ability to add non-NASCAR events at a facility (whether that be additional racing events or non-racing types of shows to run more people through the turnstiles) to drive additional revenue.

TWST: And then finally, Cedar Fair (NYSE:FUN), which I believe is a limited partnership.

Mr. Conder: They’re an operator of theme parks with their flagship park, Cedar Point in Ohio. They also own Knott’s Berry Farm in Southern California, which was purchased a couple of years ago, along with parks in Minneapolis, Kansas City, and the eastern Pennsylvania (Philadelphia) area. They’re good operators that generate a very good return on equity, and are disciplined in the prices they pay for acquisitions. We recently downgraded the stock from a seasonality and valuation perspective, although we continue to believe that for investors who are looking for somewhat of a safe haven with a very nice yield that is tax free to most people for several years, it’s still not a bad place to be.

TWST: Doesn’t Cedar Fair benefit from the fact that it’s not a vacation destination so much as a place that people can go to for the day?

Mr. Conder: Correct, yes. That is one of the attractive points of the story. Instead of spending a week at a destination location, people may take a day or a day and a half and go to a Cedar Fair park, therefore making it a more attractive economic alternative.

This special issue includes:

1) Leisure Goods & Services - In an in-depth (4,100 words) Analyst Interview, Timothy Conder, Vice President at A.G. Edwards & Sons, Inc., examines the outlook for the sector and shares specific stock recommendations.

2) Leisure Industry Overview - In an in-depth (3,700 words) Analyst Interview, Hayley Kissel, Director of Merrill Lynch's Global Securities Research and Economics Division, examines the outlook for the sector and shares specific stock recommendations.

3) Outlook for Leisure Stocks - In an in-depth (3,900 words) Analyst Interview, Scott Barry, Director in Credit Suisse First Boston's Equity Research group, examines the outlook for the sector and shares specific stock recommendations.

4) Cruise Lines & Motor Sports - In an in-depth (2,600 words) Analyst Interview, Joseph Hovorka, Senior Analyst at Raymond James & Associates, examines the outlook for the sector and shares specific stock recommendations.

5) Outlook for Cruise Lines - In an in-depth (4,100 words) Analyst Interview, Robin Farley, Executive Director in the equity research division of UBS Warburg, examines the outlook for the sector and shares specific stock recommendations.

6) CEO interviews (average 2,500 words). Top management of sixteen sector firms examine the outlook for their firm and the sector.